Mobile Streams Regulatory News (MOS)

Mobile Streams plc

("Mobile Streams", the "Company" or the "Group")

(AIM: MOS)

AGM statement

At its Annual General Meeting which is taking place today at 10am at the offices of Grant Thornton UK LLP at Euston House, Melton Street, Euston Square, London, NW1 2EP, Mobile Streams will provide the following update to its shareholders:

"As announced previously, the Company's core market in Argentina is changing rapidly as customers are moving away from the traditional model of subscribing for basic content via their mobile operators to advertising funded freemium models with initial free content and further content available for a subscription or premium. As we announced on 9 November 2015, we anticipate that this trend is likely to affect our revenue for the first half of the current financial year.

In order to identify new areas of growth the Company is investing in a product and market diversification strategy to develop new lines of revenue built upon our expertise in sourcing and managing mobile content. At the same time the board of Mobile Streams (the "Board") is continuing to implement cost reduction measures with a view to maintaining the Group's EBITDA for the current financial year at around breakeven whilst allowing for the new areas of investment.

Our ad-funded games services are now live in the U.S., Argentina, India and Nigeria and the Company is adding new advertising network partners with a view to generating revenues in these regions. We are pleased to have launched subscription services in Nigeria with billing from one of the four primary local mobile network operators and anticipate launching with a second operator in the coming weeks.

We are pleased to update that both our mobile internet subscription services and ad-funded services have been launched recently in India through our now fully incorporated Indian subsidiary, Mobile Streams India Private Limited. As previously announced, we have signed direct contracts for mobile internet billing with two of the three largest local Indian mobile operators with a total aggregate subscriber base of approximately 350 million. One of these carriers has already gone live for the initial launch and the second is set to follow in the near future.

The Company's cash book positive figure at 11 November 2015 was £1.75m.

The Company continues to progress its market and product diversification strategy and looks forward to providing further updates at the appropriate time."

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