Last checked at 28 Sep 2010 09:35
28 September 2010
Mobile Streams Plc
("Mobile Streams", the "Company" or the "Group")
Management Services Agreement for Zoombak to end in January 2011
Mobile Streams Plc (AIM: MOS), announces today that its management services agreement to provide executive leadership to Zoombak Inc ("Zoombak", formerly Connected), the location based devices and services subsidiary of TruePosition Inc ("TruePosition"), will end in January 2011. Under the current agreement, Mobile Streams' CEO is contracted to spend approximately one-half of his business time on managing Zoombak.
Simon Buckingham, CEO of Mobile Streams, said: "It has been a great learning experience building and managing Zoombak's location based services over the past five years. I am proud that Zoombak has built two generations of its dedicated GPS Locator device which has found strong consumer retail interest as well as built a significant presence in enterprise and corporate applications and markets".
Buckingham continued: "In 2011, I will now be able to spend 100% of my time and efforts developing Mobile Streams' business for the first time since its IPO. This will be particularly critical for the Company next year as Mobile Streams seeks to maximise the opportunities and returns from our recently launched Appitalism service which provides an online marketplace and ratings service for more than 5 million apps and digital content. The great thing about Appitalism is that as a digital goods business there are no manufacturing ceilings to limit the business' growth."
Under the terms of the agreement, Mobile Streams will be paid a fixed fee of US$750,000 by TruePosition in 2010 for the Zoombak management services. Additional bonus sums may also become payable to Mobile Streams depending on the financial performance of Zoombak. Invoices have been raised for bonuses earned in previous years although currently these remain unpaid by TruePosition.
Enquires:
Mobile Streams +44 1442 560 029
Simon Buckingham, Chief Executive Officer
Ian Brewer, Chief Financial Officer
Nominated Adviser
Grant Thornton UK LLP +44 20 7383 5100
Philip Secrett
Broker
Singer Capital Markets Limited +44 20 3205 7500
Jeff Keating
About Mobile Streams
Mobile Streams is a leading retailer of mobile content on the mobile internet globally through its flagship www.ringtones.com and www.appitalism.com brands and works with some of the world's largest mobile network operators and media companies to mobilise and monetise their content.
The site appitalism.com was launched in mid-September 2010 and is at a very early stage in its commercial development. Appitalism has more than 5 million apps and digital content items on offer and aims to become a leading provider of applications for a wide range of mobile and digital devices
Mobile Streams operates subsidiaries in North America, Europe, Latin America and Asia and has approximately 60 employees.
For more information, please go to www.mobilestreams.com.