RTHM.L Regulatory News (RTHM)

17 January 2017

RHYTHMONE PLC

PERK INC. ACQUISITION UPDATE

London, England and San Francisco, California - Further to its announcement of 5 December 2016, RhythmOne plc ("RhythmOne" or the "Company", LSE AIM: RTHM) is pleased to provide an update on its acquisition of Perk Inc. ("Perk").

At a special meeting of the shareholders of Perk held on 12 January 2017, the requisite majority of Perk shareholders voted in favor of the Company acquiring all of the issued and outstanding common shares and class A restricted voting shares of Perk (the "Acquisition") by way of a court-approved "Plan of Arrangement".

Further, a court hearing to approve the Plan of Arrangement took place on 16 January 2017. Following the satisfaction or waiver of all other closing conditions customary for transactions of this nature, it is anticipated that completion of the Acquisition will take place on 19 January 2017 immediately upon admission to trading of the 88,235,410 new RhythmOne ordinary shares, being the total consideration for the Acquisition.

No shares are held in Treasury and accordingly, the total number of voting rights in the Company following the admittance of the new RhythmOne ordinary shares for the Acquisition and exercise of options pursuant to RhythmOne option schemes will be 494,224,203. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, RhythmOne.

Analyst and Investor Contact

Dan Slivjanovski

RhythmOne plc

Financial Media Contacts

Edward Bridges / Charles Palmer

FTI Consulting LLP

(UK) 020 3727 1000

Nomad and Broker for RhythmOne

Nick Westlake (Nomad) / Lorna Tilbian / Mark Lander

Numis Securities Limited

(UK) 020 7260 1000