Mobile Streams Regulatory News (MOS)

4th July 2022

Mobile Streams plc

("MOS" or "the Company")

Mobile Streams signs major NFT contract with Pumas

Mobile Streams plc, the AIM quoted mobile content and data intelligence company, is proud to announce it has signed a major 5 year contract to be the exclusive global producer and provider of Non Fungible Tokens ("NFTs") for Pumas football club. Pumas is one of the "big 4" football clubs in Mexico with a global fan base including huge support in Mexico and the USA.

Streams Data, a wholly owned subsidiary of the Company, and Club Universidad Nacional, A.C. (the "Pumas") have entered into a Licence Agreement whereby MOS has been granted the global exclusive right to use the Pumas' commercial and IP property for the sole purpose of the production, promotion and commercialisation of NFTs and blockchain products globally (the "Agreement").

Under the terms of the Agreement, the parties have agreed a target revenue figure over the 5 years of the contract of which MOS's share is approximately USD 14.5 million. This net figure, which is a target agreed between MOS and Pumas and not a forecast or guidance as to what will actually be achieved, is the estimated revenue MOS will receive after any revenue-share payments have been made. Revenue from the NFTs will come from both the sale price of the NFT and a royalty generated from them each time they are traded in perpetuity, these royalties are typically 5-10% of the sale price.

Non Fungible Tokens ("NFTs") are digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. In effect the Company's products are digital merchandise. An example would be a sports trading card - NFTs produced under this contract are one-of-a-kind trading cards. If you traded it for a different card, you'd have something completely different.

The global NFT market is expected to reach $122 billion in size by 2028, with more than $17 billion in sales in 2021 and $35 Billion expected to be generated this year. The fastest growing sector within this space is the sports NFT market and the Company believes this contract win with a major sports brand demonstrates the business is now very well positioned within this space. (Sources listed below).

MOS will produce a large range of NFTs for Pumas including but not limited to player trading cards, fan engagement products and club collectibles. NFTs will be sold via a primary marketplace that MOS is creating for Pumas which can be accessed via their club digital touch points, such as their website and social media accounts. Additionally, the NFTs will be sold via MOS's telco contracts globally, its LiveScores sites and Apps and the MOSMetaverse website. They will be marketed not only by the club to all Pumas fans they have access to, but also online across the world to Pumas fans globally including in the USA where there is a significant Mexican population and Pumas fanbase. Additionally, MOS will be responsible for selecting secondary marketplaces to drive additional sales and trading of the products and finding 3rd party opportunities where the branded NFTs can be used or traded such as in gaming.

This contract further underlines the significant progress the Company is making in its core strategy to become a major producer of next generation Web 3.0 content and digital merchandise. This is delivered by utilising the Company's telco contracts and LiveScores services across the world as sales channels, its AI digital marketing platform Streams, and its NFT creation platform, to create the NFTs and the marketplaces to sell them.

Details of the Agreement

Under the terms of the Agreement, the parties have agreed a target revenue figure over the 5 years of the contract, of which MOS's share is approximately USD 14.5 million. This net figure is the estimated revenue MOS will receive after any rev-share payments have been made. The Agreement also requires MOS to make an initial cash payment to Pumas, which is well covered by the Group's existing cash and cash equivalents of £1.8m, and if certain revenue targets in a year are met then a minimum revenue guarantee would exist for the next year. However, in the context of the revenue that MOS would receive for this to be activated, the Board considers these would be modest and achievable from within the next year's revenue that MOS expects to receive from the contract. The Board further believes that, noting the expected recurring nature of NFT revenues, it estimates that its maximum net exposure, under all but the most extreme worst case commercial assumptions, including the upfront cash fee, would be approximately USD310,000 over the first 3 years of the Agreement. The Agreement contains a 3 year break clause and standard terms for termination.

Ing. Leopoldo Silva, President of Pumas, said:

"We are delighted to be partnering with Mobile Streams for our NFTs. Through this contract Pumas are excited be able to develop and deliver a new generation of digital products and merchandise to our fans. We look forward to a long and successful partnership."

Mark Epstein, CEO Mobile Streams plc, said:

"We are extremely proud to have signed this contract with Pumas. This contract win with a major sports brand demonstrates the progress made by the business. We are now very well positioned within this space and look forward to growing our presence in the Web 3.0 content, digital merchandise and NFT space."

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About Mobile Streams

Mobile Streams delivers world class gaming content to a global audience, through its LiveScores and mobilegaming.com platforms, our long-standing carrier relationships in countries including India, Argentina and Mexico, and partnership with IGS (International Gaming Systems). Our Streams data insight, intelligence and visualisation services and marketing optimisation tools support the content business, as well as serving enterprise level bespoke clients and the Streams SaaS ("Software as a Service") self-service platform. Our strategy is to deliver next-generation content including gaming, Esports and related NFTs to a global audience.

For further information, please contact:

Mobile Streams plc

Nigel Burton, Adviser

+44 77 8523 4447

www.mobilestreams.com

Beaumont Cornish (Nominated Adviser)

James Biddle and Roland Cornish

+44 (0) 20 7628 3396

Peterhouse Capital Limited (Broker)

Lucy Williams and Duncan Vasey

+44 (0) 20 7469 0930

References

'The Global Non-Fungible Tokens (NFTs) Market is expected to reach a value of USD 122.43 Billion by 2028'

https://www.globenewswire.com/en/news-release/2022/05/26/2451426/0/en/The-Global-Non-Fungible-Tokens-NFTs-Market-is-expected-to-reach-a-value-of-USD-122-43-Billion-by-2028-at-a-CAGR-of-34-10-over-the-forecast-period-2022-2028-SkyQuest-Technology.html#:~:text=According%20to%20SkyQuest%20Technology%2C%20the,projected%20to%20augment%20market%20growth.

'In 2021 NFTs rose by 21,000% to more than $17 billion'

https://www.cnbc.com/2022/03/10/trading-in-nfts-spiked-21000percent-to-top-17-billion-in-2021-report.html'In 2022 its predicted to reach as much as $35 billion in net sales volume'

https://tokenizedhq.com/nft-market-size/'Fastest growing sector includes sports NFTs'

https://finance.yahoo.com/news/202-nft-growth-sports-memorabilia-105800412.html

'Royalties average out at between 5 and 10%'

https://nftsguru.com/sell-nfts/nft-royalties-examples/