Motive Television Plc Regulatory News (MTV)

19 July 2013

MOTIVE TELEVISION PLC

("Motive" or "the Company")

Half-Year Business Update

Motive Television PLC ("Motive" or "the Company") announces its half-year business update.

The Company has continued to make excellent operational progress on existing and new projects. Major recent developments include:

·; Having commercially launched its new services using Motive technology, Digiturk continues to upgrade and introduce new features to its pay television satellite platform with support from Motive. The Company is currently working on completing Phase 2 additional features for Digiturk and is in discussions regarding contracts for further development and support. In the meantime, Motive has received its first licence royalty payments based on set-top boxes ("STB's") manufactured with the Company's technology that was in line with management's expectation based on the roll out starting part way through H1. Although the Company cannot predict the ultimate number of the 2.5 million current Digiturk subscribers who may receive STB's with the Company's technology in the next 2-3 years, the initial revenues received indicate that the Company's conservative estimates remain reasonable. The continuing royalties are on top of the previously disclosed engineering development contract for $1.1 million and the above-mentioned new development and support contracts.

·; Motive is working with terrestrial broadcast group CME to test and complete its Television Anytime Anywhere platform in CME's flagship market, the Czech Republic, in Q4 2013. Once implemented the CME service broadcast from Prague is expected to be one of Europe's most advanced platforms. CME has requested a number of extensions and additions to the platform that are expected to create additional revenues for Motive in 2013 and 2014 in addition to the continuing variable subscriber-based income following CME's commercial launch of the service.

·; Motive successfully completed a demonstration of full function Tablet TV technology to Granite Broadcasting ("Granite") in July 2013 including choosing and viewing live channels, recording for later viewing, and selecting and receiving video-on-demand content. The Company is making some technical improvements and will install Tablet TV in Granite's television station in San Francisco and headquarters in New York during August, for use in demonstrations to the television industry in August and September. Following these demonstrations, the Company and Granite anticipate television broadcasters, consumer electronics companies, and content organizations to show interest in joining the Tablet TV project.

·; Motive continues in discussions with a number of telecoms companies regarding its Mocast software solution, which enables 4G LTE Mobile Operators to efficiently provide managed scheduled downloading of video content to their OTT video subscribers. While the sales process is lengthy with these large organizations, to date one telecom has informed the Company that it is interested in a pilot, subject to their internal procedures and processes.

·; In February 2013, Motive announced a paid consulting contract with Siyaya, a new DTT broadcasting platform based in Johannesburg, South Africa to assist them with planning their services and preparing for a licensing competition. Under the contract, Motive prepared a design for the technology requirements and ran a tender process to select suppliers. Under the plans, Motive would serve as the primary technology partner and systems integrator for Siyaya.

On 24 July 2013, a licensing hearing is scheduled in Johannesburg and the Motive team, led by CEO Len Fertig, COO Tony Combe, and VP of Sales and Marketing Gianluca Ferremi will be present in support of the Siyaya license bid. Should the license be awarded, Motive would receive a contract for developing, implementing, and supporting the technology for Siyaya.

·; Motive is currently in discussions with Mediaset regarding renewal of its support and maintenance contract for one or two years. The Company has issued STB licenses to over 360,000 homes to date under the Mediaset contract.

·; In May 2013, Motive announced its plans to develop a version of Tablet TV for the UK, compatible with Freeview. The Company has joined the Digital Television Group ("DTG", who publish and maintain the technical specifications for Freeview in the UK) and is in the process of developing its product and meeting the requirements of DTG to make it possible to complete the process for licensing the Freeview brand for its UK Tablet TV.

·; Motive is preparing additional patent filings to protect and extend its intellectual property rights in additional countries and will announce these in due course. In April 2013 Motive announced the award of a US patent for its Television Anywhere technology.

·; Motive's Content business had a number of programmes broadcast in H1 2013: "The Gambler" followed the fortunes of Irish poker player John O'Shea at the Las Vegas World Series in 2012; "Batmen" explored the history of cricket in Ireland; "The Estate" followed the fortunes of the residents of a council estate in Waterford; ""No Time to Die" looked at the subject of paediatric palliative care in Ireland; and "We Got Game" explored the history of basketball in Ireland in the 1980s. All five programmes were delivered on time and on budget.

In addition new contracts have now been signed with the Broadcasting Authority of Ireland for the production of two new documentaries: "Q School" follows the fortunes of Irish professional golfers trying to qualify for the PGA tour; and "Prison Families" is a documentary series following the lives of the families of prisoners. Finally, RTÉ has commissioned a one-off sports documentary on Irish superstar cage fighter Conor McGregor.

·; Following the preliminary judgment in the CCAN dispute announced by the Company on 9 July 2013, Motive will lodge an appeal before the 5th September 2013, which is the deadline for such an appeal. This is a written process, and on average it takes between 9 and 14 months.

·; The Company expects to release its results for the half year ended 30 June 2013 in September 2013. These results are expected to be in line with market expectations.

Further details:

Motive currently has three products derived from a common base of patented software and in the Board's opinion each one represents an exciting opportunity for rapid growth.

A. Television Anytime Anywhere: Providing value-added capabilities to digital terrestrial satellite broadcasters and cable companies that enable their offering video-on-demand, catch-up television, virtual channels, and other features to their pay television subscribers. Motive's technology has been in use by broadcasters since December 2009 and continues to be implemented in additional markets.

Motive currently has four contracted clients for the Television Anytime Anywhere® technology:

a. Mediaset, Italy's largest terrestrial broadcaster

b. Digiturk, Turkey's largest satellite pay television platform

c. CME, Central Europe's largest terrestrial broadcaster

d. Siyaya, a new broadcaster seeking a licence in South Africa

B. Tablet TV: By porting Motive's existing TV Anytime Anywhere software to an app for iPad, Android, and Microsoft tablets, and integrating our software with an antenna-tuner device, Motive has been able to develop the capability for tablet users to watch and record free digital television on their tablets just as they would on a television with a PVR. In addition, enabled tablets are able to receive optional "top-up" packages of movies, classic television series, sports, factual programs, etc. This product is being implemented first in the United States in partnership with Granite Broadcasting.

C. Mocast: Motive provides a software solution that enables 4G/LTE Mobile Operators to efficiently manage guaranteed scheduled downloading of video content to their OTT video subscribers. This enables the mobile operators to better manage and reduce peak congestion on their networks, thereby reducing distribution investment and costs, access otherwise lost revenues and increase ARPU.

The Company is in conversations with broadcasters, content companies, satellite and cable companies and telecoms regarding all of its solutions and is confident that this will lead to new business in 2014 and beyond.

The Company will hold its Annual General Meeting of Shareholders as announced on Wednesday 24 July.

Enquiries:

Notes to Editors

Motive Television is the developer and integrator of innovative patented software solutions for the television industry that enable our clients to offer on-demand content over any network to any device. We have the knowhow and ability to customize our software to work with existing networks, saving our clients substantial expenditures. Our customers are broadcasters, satellite platforms, cable operators, and telecoms.

Motive's patented and proprietary solutions include:

Television Anytime Anywhere: Video-on-demand and place shifting for the broadcasting and pay television industry

Tablet TV: Viewing and being able to record digital terrestrial TV directly to tablets and smartphones

Mocast: Enabling managed downloads of IP delivered content in 4G LTE wireless systems

Motive's content division is:

Motive Television Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.

Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).

http://www.motivetelevision.co.uk