Acquisition

5 Sep 2006 07:01

Felix Group PLC05 September 2006 5 September 2006 Felix Group plc acquisition of 4Kiosk Solutions Limited's digital kiosk business and machines up-date Felix Group plc ("Felix") today announces the acquisition of the digital kioskbusiness of 4Kiosk Solutions Limited ("4KS"), a kiosk and payphone machinedesign and development company installing and maintaining kiosks in the UK. 4KS have kiosks installed in retail and leisure locations including a number ofcolleges (Solihull, Barry, Moulton and Tamworth) and the Kingfisher ShoppingCentre in Redditch. 4KS kiosks are also currently undergoing trials with Spar(UK) convenience stores. Felix is acquiring the assets and all intellectualproperty rights associated with 4KS's kiosk business for a total considerationof £125,000. The acquisition does not include the payphone business of 4KS. Theassets of the business include the kiosks currently deployed, the kiosk designs,the application server and all associated intellectual property for the softwareincluding the hosting and monitoring system. The initial consideration for theacquisition is £75,000 in cash. Additional consideration of £50,000 in cash, orat the option of Felix, the allotment of such number of ordinary shares in Felixthat have a value of £50,000 (based upon the quoted mid market price at the timesuch shares are allotted) is payable to 4KS prior to 30 November 2006. Theprofits or losses attributable to the assets being acquired are not readilyidentifiable from the financial information available to Felix. In addition, Felix Corporation Limited has appointed 4KS's Managing Director,Matt Talbot as its Operations Director to oversee the MAX BOX roll-out as wellas continuing to work on 4KS's pipeline of kiosk opportunities. Commenting Andy Egan, Chief Executive, Felix Group plc said; "The acquisition ofthe assets and intellectual property of 4KS's kiosk business gives us a smallerand more compact piece of hardware which is desired in certain retail venueswhere space is at a premium. In addition, deploying quantities of the4KS-designed kiosk combined with the broader range of digital services we canoffer in venues which already have ATM contracts in place will enable us todrive revenue whilst, at the same time, provide retail and leisure customerswith additional services. We see this kiosk solution complementing our MAX BOXto provide a broader range of venues for machine deployment. Machines up-date Since raising £5.1m after expenses as announced on 9 May 2006, Felix hasconcluded the final development of the first 20 production standard MAX BOXmachines. This process has seen the software applications for all digitalcontent written and tested, along with the MAX BOX hardware achieving fullEuropean Conformity ("CE") approval passing all relevant test proceduresincluding electrical safety and emissions. Having now achieved this importantaccreditation, Felix will deploy these first 20 machines. Following that, andhaving identified suitable machine venues, Felix intends to concentrate onassembling and deploying the next 100 MAX BOX machines, building and deployingthe further 280 machines as detailed in the circular to shareholders issued inMay, whilst concluding and implementing the existing business opportunities 4KSbrings. Felix will update shareholders on its deployment programme as soon aspossible. Ends Enquiries: For Felix Group plc - Mike Wallwork(Office) 01565 831100 (Mobile) 077956 13844 (email) mike@felixcorp.com PR for Felix Group plc - Holborn PR, David Bick(Office) 020 7929 5599 (email) info@holbornpr.co.uk Notes to Editors: Felix Group plc (Reuters FLX.L; Bloomberg FLX LN)www.felixgroupplc.com Felix Group's ordinary shares were admitted to trading on AIM on 8 March 2004.Felix Group initially developed a new form of sales promotion through a directconsumer interactive medium called Everyone's A Winner. Felix has now combinedthis retail innovation with a traditional ATM machine and included a (growing)range of digital consumer services (photo processing, mobile top-up and contentand music downloads) to form MAX BOX, a kiosk designed to dispense cash, vendsales promotions and provide additional consumer services. By utilising retailers' advertising and sales promotion budgets, Everyone's AWinner enables participants to be allocated a non-cash prize guaranteed to havea retail value of at least twice the cost of participating. This information is provided by RNS The company news service from the London Stock Exchange