MXCP.L Regulatory News (MXCP)

22 April 2013

2ergo Group plc

Podifi contract wins and trading update

2ergo Group plc (AIM: RGO, "2ergo" or "the Group"), the owner and international provider of patented contactless mobile technology, announces an update on current trading and recent contract wins for its podifi contactless mobile loyalty and couponing system.

New client wins include a Premier League football club which is trialling the podifi platform for the remainder of this season ahead of a full roll out for the start of the 2013/14 season. The club-branded digital wallet will allow supporters to download mobile coupons for use within the stadium, collect loyalty points, place off-line bets and view club related content. The podifi technology will enable the club to collect data within its stadium, corporate suites and in-house gaming facilities whilst offering fans state-of-the-art mobile services.

Compass Group, the leading food service solutions provider, is also installing podifi technology in several of its catering sites such as Bournemouth University, Deeside College, Compass Group Training Centre Heathrow and Watford General Hospital. Podifi will enable these sites to generate footfall and build customer loyalty by rapidly creating, launching and managing mobile coupon based offers and loyalty promotions. The technology is also able to measure the performance of a specific promotion or campaign accurately and in real time.

2ergo has also won new contracts for podifi with Trinity College Dublin and University College Birmingham. This brings the current total student audience to over 50,000 students, who will be able to redeem mobile coupons or build loyalty points by tapping their smartphone over a podifi pod at till points within university shops and participating local merchants.

Following a successful trial of podifi with O2 in Dublin, 2ergo will begin the second phase of its partnership with O2. This will include a broader merchant and consumer roll out of the podifi platform, with increased functionality such as a collaborative loyalty programme where users will collect loyalty points at participating merchants. 2ergo is currently working with O2 to scope the extent of this phase of the programme.

The Group's agreement with Jersey Telecom (JT) to launch podifi contactless wallet services in Jersey is making good progress. This service will enable JT customers to redeem mobile coupons at participating retailers using their smartphones. Sales have recently commenced by JT's sales team, with a number of merchants already on board.

2ergo's first major university deal for podifi with the University of Salford is also gaining traction and has been very well received by the students. The podifiplatform allows both on and off campus shops, restaurants and bars to send deals and coupons direct to the university's 20,000 students via a university-branded digital wallet which is updated daily.

2ergo's patents pending in relation to the podifi technology have also now been granted.

The Group's current cash balance is c. £390,000 with its banking facilities unutilised. The Board is in advanced stages of securing funding and expects to provide a further update in due course.

Neale Graham, CEO of 2ergo, commented,

"With extensive Group reorganisation and technology development behind us, these recent contract wins are a strong endorsement of our commercial positioning from some significant organisations."

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About 2ergo Group plc

2ergo Group plc, the owner and international provider of innovative, proprietary contactless mobile technology podifi, delivers coupons and vouchers, loyalty, proximity and payment solutions to organisations of all sizes in order to assist them to develop and execute their mobile strategy.

Headquartered in the UK, 2ergo has been a pioneer of enabling innovative mobile business solutions since 1999, supplying clients such as Aviva, Ladbrokes, PizzaExpress, Rightmove, O2, Orange, Talk Mobile, Transport for London, Phones4U, Procter & Gamble and Visit England, who have all benefited from 2ergo's end-to-end mobile solutions to increase sales, mobilise business processes, reduce costs and enhance customer relationships.

For more information visit www.2ergo.com