MUBL.L Regulatory News (MUBL)



24 june 2010

MBL Group plc 

("MBL" or "the Group")

Acquisition of 15% shareholding in U-Explore Ltd

The Board of MBL Group plc, one of the UK's leading multi-channel distributor of home entertainment products, is pleased to announce that it has agreed to acquire a 15 per cent. stake in U-Xplore Limited, trading as U-Explore ("U-Explore"), the careers information and advice provider, for a total consideration of £2 million, payable in cash. As part of the agreement, Trevor Allan will join the Board of U-Explore and MBL will receive fees for the management services that MBL provides, amounting to £100,000 in the first year.

Information on U-Explore

U-Explore provides careers information, advice and guidance; enabling people to make informed choices through access to designed content targeted at connecting them to the most appropriate course, job, training or experience. U-Explore is powered by a proprietary online platform which enables the user to explore channels of dynamic media content linked to specific industry sectors and associated businesses. It operates free to view (via subscription) and pay on-demand models, delivering personalised content to each of its users. Third party commissioned content is also distributed via the platform to enhance the 'free to view' user experience.

Information on MBL

MBL is a multi-channel distributor of home entertainment products - delivering physical and digital content in-store, online and digitally. The company owns and operates the 'Digital Vault' - a database which holds and distributes a wide range of digital entertainment content. It is also leading the way in the development of broadband-enabled, touch-screen kiosks which retail digital and physical content on-demand to consumers in stores, airports and the like. Physical content is delivered direct to home, and digital content can be downloaded immediately to a range of mobile devices.

Benefits of the acquisition

Both parties see clear synergies in working closely together. U-Explore is keen to develop its footprint in the UK and aims to utilise MBL's proprietary technologies to take its content further than its website. Kiosks, for example, offer U-Explore an ideal additional channel - with the opportunity to place these where their consumers are - in schools, colleges, public buildings and libraries. Users will be offered careers based information, advice and guidance alongside a tightly managed catalogue of home entertainment products provided by MBL's Digital Vault.

As the business grows, U-Explore is also looking to offer additional content and services to be accessed via personal U-Explore accounts. There is a natural fit with MBL, with both parties able to offer this key target demographic a range of entertainment based services alongside careers advice and guidance.

The partnership also presents considerable opportunities for cross-fertilisation of clients. Major UK retailers are becoming increasingly focused on the lack of vocational knowledge and training that students receive at school or college. MBL will therefore work with U-Explore to offer technology based solutions to its retail client base that help to bridge the gap between education and employment. Equally, U-Explore has a number of major corporate clients which will be offered MBL's suite of physical and digital entertainment solutions, across in-store, online and digital.

Andy Pickles, CEO of U-Explore, comments:

"This partnership with MBL comes at a critical time for U-Explore as we move into a significant period of projected growth which will require the business to gear up to maximise on the wealth of opportunities available to us. MBL brings an added level of expertise to our board, access to resources to drive the business into new markets, and the ability for both businesses to leverage their content and technology assets to further exploit new and existing markets. We are very excited about this partnership and look forward to the coming years where we hope to exceed all expectations with the support of MBL."

Trevor Allan, MBL's Chief Executive said:

"Our partnership with U-Explore offers huge opportunities and synergies for both parties. We are leading the way in delivering content across multiple channels, and U-Explore is keen to develop its footprint to reach its consumers in the UK and internationally. We believe that the combination of skills and the cross-selling opportunities across our respective contact bases present a great opportunity for both MBL and U-Explore."

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