PHRM.L Regulatory News (PHRM)

12 Jan 2006 07:00

Embargoed: not to be released until 7.00am on 12 January 2006 121Media, Inc. ("121Media" or "the Company"), Trading Update: Further ISP agreements signed and Trading Statement 121Media Inc., the contextual online advertising company is pleased to announcethat since its announcement on 11 November 2005 of the signing of its firstwireless Internet Service Provider ("ISP") agreement it has now signedagreements, with four further ISPs in the USA, to implement its PageSenseJavascript technology.Since early in 2005, the directors have believed that a significant opportunityexists to enter into revenue sharing contracts with ISPs to provide them with ahighly targeted contextual advertising solution.Against the positive operational background reflected in the success in signingthese ISP contracts, together with the significant interest the Company isreceiving from other ISPs, the directors have decided that the Company willcontinue to reduce its involvement in new desktop distribution and concentrateon its ISP strategy. This is where the focus of management effort and financialresource is now fully directed. In line with this progress and in addition tothe announcement made in December 2005 regarding new board appointments, theCompany has continued to build a suitably experienced team to deliver on theISP opportunity.Turnover for the year has increased to approximately $5.1 million, (2004 $4.17million) although, as the result of the significant investment made in thisdirection in recent months, losses for the year ended 31 December 2005 areexpected to be in the region of $3m.The directors believe that the Company is extremely well positioned as thecurrent sole provider of a turnkey technology to introduce high value targetedadvertising technology to ISPs, whether these are free wireless providers,discount broadband or dial-up providers. As pricing pressure and new forms ofaccess such as WiMAx drive internet connectivity pricing downwards, theybelieve that advertising will become an increasingly important element of ISPs'revenue models. The board believes that, during 2006, 121Media will play aleading role in the development of new revenue models for companies in thebusiness of Internet connectivity.Kent Ertugrul, Chief Executive Officer of 121Media CEO, commented:"After months of developing the ISP marketplace, I am very pleased with ourprogress to date and excited that we are playing such a key role in redefininga new pricing model for ISPs. 121Media's progress is the direct result of therecent convergence of significant pressure on ISP margins, the gatheringmomentum of free municipal wireless solutions such as Google's San Franciscooffering and 121Media's unique advertisement serving technology, which makes itpossible for ISPs to generate substantial advertising revenue, while preservingthe end user experience." - Ends - For further information please contact:121Media plc 020 7484 5391 Kent Ertugrul, Chief Executive Officer 020 7357 9477 Tim Bowen, Chief Financial Officer Hogarth Partnership John Olsen/Barnaby Fry END121 MEDIA INC