MXCP.L Regulatory News (MXCP)

17 Jul 2006 07:00

2 ergo Group plc17 July 2006 Embargoed until 7am 17 July 2006 2ergo Group plc ("2ergo" or "the Group") Acquisition of VICS Ltd 2ergo, the AIM listed provider of convergent communications solutions, ispleased to announce the acquisition of Manchester based VICS Ltd. ("VICS"),which will introduce video capabilities to its core business. VICS was established in 2000 as a spin-off company from mobile video research atManchester University UMIST. To date, the company has been carrying outcutting-edge research and innovative product development for the mobileindustry. The acquisition will bring video technology IP, expertise and productsin mobile video, significantly enhancing the capabilities of 2ergo's existingproduct range. Video is now an essential tool needed to meet the demands of users in theburgeoning mobile content and entertainment arena. 2ergo prides itself onlistening to its clients' needs and is confident this acquisition will lead tothe deployment of a world-class multimedia solution. The inclusion of video intothe already successful Multiserve Platform will deliver exciting newpossibilities for widening the Group's portfolio of revenue generating andmarketing solutions. This will also expand 2ergo's reach, enabling the Group toengage with new clients and open up previously untapped market sectors. The technical complexities associated with the delivery of mobile video versusthe provisioning of more traditional mobile content, such as text, ringtones andwallpapers, are immense. VICS has developed this technology to provide anend-to-end solution for the provisioning of multimedia content for both mobileand Internet channels. By taking a single digital video source the solutionautomates the creation, formatting, encoding and delivery of multimedia contentfor a diverse array of devices and content types (video, audio, ringtones,wallpapers, games, etc). The natural synergy of this approach, with 2ergo'slongstanding convergent communications strategy, paves the way to increasing theGroup's multi-channel business solutions business. At the heart of VICS' video enabling technology is an innovation derived fromresearch carried out at UMIST. This focused on the broadcasting of live videofootage over very small data channels found in GSM networks. The uniqueness ofthis solution culminated in VICS' patent, which has since been developed forusage over a variety of communication channels. As part of the acquisition, a founding member of VICS, David Stead, plus a teamof experienced developers will join 2ergo. The team will form the new VideoDivision within 2ergo. Barry Sharples, Joint CEO of 2ergo commented, "The acquisition of VICS allows2ergo to move, yet again, one step ahead of the competition. The desire formobile video solutions has risen exponentially since its inception and the Groupis confident it will become a leading provider of this technology for bothconsumer and business focused applications. The appointment of David to head upour new Video Division was a natural decision and we welcome him to the 2ergofamily." David Stead, Director of VICS said, "We have spent considerable time and effortbuilding what is essentially an R&D company, optimising our video technology forthe mobile environment. It is exciting to become part of 2ergo which has thevision and commercial expertise to successfully take our enabling technology tomarket. Our similarities in design approach will ensure a smooth integrationwith 2ergo's flexible Multiserve Platform and clients can expect rapid delivery,with the first stage of video solutions becoming available over the next fewmonths." -ends- For further information, please contact: 2ergo Group 01706 221 777Neale Graham, Joint MDBarry Sharples, Joint MD Tavistock Communications 020 7920 3150Christian Taylor-Wilkinson Notes to editors:2ergo Group Plc is a leading provider of interactive and multi-channelcommunications across mobile and fixed-line telecommunications and the Internet.Clients range from SMEs to multi-national enterprises and public sectororganisations. 2ergo's services and solutions enable organisations to exploit the benefits oftechnology, to switch on new revenue streams, optimise business processes andopen up new marketing channels. The Group listed on AIM in March 2004. This information is provided by RNS The company news service from the London Stock Exchange