MXCP.L Regulatory News (MXCP)

11 Sep 2006 07:03

2 ergo Group plc11 September 2006 Embargoed until 7am 11 September 2006 2ergo Group plc ("2ergo" or the "Group") Acquisition of Proteus Inc 2ergo, the AIM listed provider of convergent communication solutions, is pleasedto announce the acquisition of Proteus Inc, a US based provider of mobileservices to the North and South American markets. The Board believes thisacquisition will mark another significant milestone for the Group, providing asolid foundation to launch its entire portfolio of solutions and services to theAmerican markets. Proteus will bring to the Group: •An established and respected route into the US mobile market •Direct US carrier connectivity •A natural expansion to the Group's current profitable US operations •Relationships with major US media companies including Disney, Fox and NBC-Universal •Month-by-month profit contribution by end of financial year 2007 2ergo's decision to make a US acquisition follows a long search to find the mostappropriate avenue for North and South American expansion. The Group's strategyhas been to utilise its highly successful Multiserve Platform to leverage acompetitive advantage in this rapidly growing market place, which it has nowbeen doing since July 2004 though its subsidiary, M-invent Inc. The Boardbelieves that the acquisition of Proteus not only reinforces 2ergo's positionwithin the American markets, but will provide a significant point of entry fromwhich the Group can begin to roll-out its portfolio of products and services asthe US market matures. Proteus, which was a division of the Norwegian media conglomerate, TelitasGroup, a subsidiary of the Japanese For-side, is well established in the US andLatin American mobile phone markets and has a number of blue chip clientsincluding, Disney, Mastercard, Fox and NBC-Universal. Established in 1996, Proteus has a strong track record in delivering interactivemobile solutions to support TV broadcasting, media events and mobile marketing.It is at the forefront of developing wireless products for everyone fromcarriers to broadcasters and has created personalisation, messaging andapplications that have helped to set standards in the US mobile industry. The Proteus acquisition will enable 2ergo to access every mobile users in theUS, as it brings with it direct US carrier connectivity. This not only enables2ergo to forge stronger relationships with the US carriers, it also allows theGroup to deploy highly interactive mobile solutions, where response times arecritical. By combining this with the highly modular and feature-richcapabilities of the Multiserve Platform, 2ergo believes it is in a strongposition to capitalise on the excellent reputation Proteus holds within itsmarket. In South America, Proteus has established a presence through its office inBuenos Aires, Argentina, as well as carrier connectivity in Mexico. The Groupexpects to bring additional Latin American countries on line in due course. The Board further believes the acquisition will enable 2ergo to makeconsiderable inroads into the US mobile market, to cover key areas such asmessaging, billing services, enhanced application provision and notably securemobile communications, utilising its Patented secure mobile protocol;2safeguard. The Group is particularly interested in leveraging the technology from itsrecent acquisition, VICS, the specialist video encoding spin-out of ManchesterUniversity, by providing full mobile video functionality to the US market wheredata rates are lower than in Europe for handset users. The Group has noted thatdata usage is already at a much higher level in the US and believes its clientswill have a ready market for high margin, data rich services such as music andmobile video. Jeff Lee, President of Proteus commented, "As we sought to identify a partner tohelp Proteus profit from its great track record and reputation, we were mostimpressed with the the 2ergo team's professionalism and serious intent tocapitalise on the opportunities being presented to us in the US. We aredelighted to be joining a world leader in the mobile space and look forward toleveraging their experience in Europe." Barry Sharples, joint CEO of 2ergo commented, "As we continue our strategy toexpand our organisation into the US, adding one of the most advanced mobilephone communications companies to the Multiserve Platform considerably extendsthe value we are able to deliver to our partners and customers. We believe theNorth and South American mobile phone markets are set for tremendous growth overthe next five years and we plan to capitalise on this growth while ensuring thatour customers have access to 'best of breed' solutions in all areas of theircommunications. "By working with Proteus over the past three months we have already found waysto restructure and reposition the company to bring it in line with the 2ergooperating philosophy. The company, which has invested heavily in its technologyand infrastructure will now benefit from the 2ergo model and clear direction.The Board is confident of seeing month-by-month profit contribution from the newUS business by the end of our 2007 financial year." -ends- For further information, please contact: 2ergo group Tel: 01706 221 777Neale Graham, Joint CEOBarry Sharples, Joint CEO Tavistock Communications Tel: 020 7920 3150Christian Taylor-WilkinsonSimon Compton Notes to editors: About 2ergo Group plc 2ergo facilitates communication and interaction between companies and theircustomers or staff using Mobile Internet, SMS, MMS, Web, Video and Voiceapplications. Headquartered in Lancashire, the Group listed on AIM on 11 March2004. About Proteus Proteus is a leading provider of wireless applications and carrier connectivity,providing services to the global content community. Founded in 1996, Proteus haspioneered the use of revenue-generating audience interactivity using mobilephones, including live-to-air SMS (short messaging service). Proteus' broadcastpartners include HBO, FOX Sports, ABC Enhanced Television, Univision, andDiscovery Communications, and some of the popular programming brands that havebeen extended to a mobile audience through Proteus' services include: HBO's TheSopranos and Sex and the City; NFL, MLB, and NASCAR on FOX Sports; ABC's TheView: His & Her Body Test, nominated for two interactive television Emmy Awards;and TLC's Trading Spaces: Home Free. Proteus' proprietary mobile development platform enables media and contentowners to quickly and cost-effectively take advantage of the numerous mobiledistribution opportunities available, including premium and advertiser-supportedSMS, MMS, WAP, J2ME, and BREW, while leveraging Proteus' direct relationshipswith all of the major U.S. wireless carriers. Proteus is based in Washington,D.C., and has offices in New York and Buenos Aires. This information is provided by RNS The company news service from the London Stock Exchange