Trading Update

7th January 2016

Mobile Streams plc ("Mobile Streams" or the "Company")

Trading Update

Mobile Streams PLC (AIM: MOS), the emerging markets focused mobile media company, provides an update to shareholders on the effect of the recent Argentine peso devaluation on its balance sheet and profit and loss account.

The Argentine peso devalued approximately 25% during December 2015, due to the release of currency restrictions, which now allows currency to flow freely in and out of Argentina. This policy was adopted by the country's new elected president in November 2015.

The devaluation has a negative impact on Mobile Streams' net assets denominated in pesos, and on the translation of revenue and costs for Argentina into GBP, as follows:

· The devaluation effect on December revenues was £0.3m. Revenue impact from the devaluation will be concentrated in 2016 and beyond given the timing of the devaluation.

· The effect on net assets is approximately £0.8 million reduction in value. This follows a reduction in our 3.2m GBP of peso denominated assets following the devaluation.

· EBITDA for the 6 months to 31 December 2015 will be reduced by approximately £0.8 million.

· Cash at 31 December 2015 was £1.5m, with no debt (this figure was reduced by a translation difference of approximately £150,000, from the cash held locally in Pesos for working capital).

· The majority of the Company's local costs for employees, marketing and other expenses are denominated in pesos and will also reduce by the extent of the devaluation when expressed in GBP.

Commenting, Simon Buckingham, CEO said:

"Our core business based in Argentina has been negatively affected in GBP terms by the recent currency devaluation. Also as previously announced, the Company's core market in Argentina is changing rapidly as customers are moving away from the traditional model of subscribing for basic content via their mobile operator to advertising funded models to obtain free content and buying premium subscriptions to access more content. As announced, this trend (before the impact of the devaluation of the currency) saw revenues in Argentina in the first six months of our financial year (July to Dec 2015) at about half those for those for equivalent six month period in the preceding financial year. If this run rate continues and with the added impact of devaluation we would expect Argentinian revenues for the current financial year (ending June 2016) to be much lower than those reported for the previous year. However the negative impact on profits will be less as much of our operating cost is incurred in pesos.

The Company will issue its usual half year trading statement later this month and will update shareholders on its new ad-funded products and markets such as India at that time."

Enquires:

Mobile Streams +1 646 812 4749

Simon Buckingham, Chief Executive Officer

Enrique Benasso, CFO

Nominated Adviser and Broker

N+1 Singer +44 (0)20 7496 3000

Nic Hellyer

Alex Price