MXCP.L Regulatory News (MXCP)

14 June 2011

2ergo Group plc

Implications 0f new PhonepayPlus Code of Practice

2ergo Group plc (AIM: RGO, "2ergo" or "the Group"), the international provider of mobile business strategy and mobile marketing solutions, notes that the 12th Code of Practice (the 'Code') issued by PhonepayPlus - the phone-paid services regulator - has recently been published. This Code is principally self regulating on the industry and will see the mobile network operators ('networks'), becoming more accountable for ensuring compliance. The Code comes into effect in September 2011.

The networks are already adopting their own operating principles, based on their individual interpretation of the Code. This has resulted in some services operated by 2ergo's customers being now at odds with elements of the guidelines contained within certain networks' operating principles.

The Group therefore has put on hold some client services operating on certain networks and is currently undergoing a detailed audit of those services to ensure they are compliant for each network's particular interpretation of the Code. This will include, where necessary, the re-sign up of current consumers for customers' billable services. This has no financial implications for end users and only a modest impact on the content and make-up of services supplied by 2ergo or its clients.

Neale Graham, Joint CEO of 2ergo, said:

"The regulation of the phone-paid services industry has always used a single set of guidelines. With the move to self-regulation, different networks are applying different interpretations of the Code.

"This has led to a change in one area of our business, with both future and some existing services being affected, as the networks have applied their new rules for all customers - new and old.

"It is very difficult at this stage to assess exactly what the financial impact will be. It may be minimal or it may have a significant short term impact on the Group's net profit but it is expected that this will reduce as end users re-sign up or are replaced. Some customer attrition is inevitable, but the actual numbers will not be known for several months. However, 2ergo's core business continues to trade strongly. We will update the market as soon as practicable, when we have clarity on our position."

Enquiries:

About 2ergo Group plc

2ergo is the international mobile business and marketing solutions company. It combines innovative proprietary mobile technologies and professional services to help organisations of all sizes to develop and execute their mobile strategy.

Organisations such as ESPN, the Australian Broadcasting Corporation, Vodafone Hutchison Australia, Fox Sports, Fox Business, Orange, Aviva, Fidelity, Transport for London, Ladbrokes, Times of India, Airtel, O2, Talk Mobile and Procter & Gamble have all benefited from 2ergo's proprietary end-to-end mobile solutions to increase sales, mobilise business processes, reduce costs and enhance customer relationships.

2ergo touches all types of mobile users millions of times each day through innovative mobile business solutions that incorporate search, security, advertising, location, proximity, coupons, tickets, mCommerce and data network analytics enabling fully-integrated and personalised one to one marketing communications.

Headquartered in the UK, 2ergo has been a pioneer of enabling innovative mobile business solutions across multiple sectors and geographies since 1999. Its international presence spans North America, Latin America, India and Australia. 2ergo is AIM listed on the London Stock Exchange (AIM: RGO).

For more information, visit www.2ergo.com.