Adamind Ltd: First Day of Dealings on the Alternative Investment Marke

    Software Writers/Telecommunications Writers

    RA'ANANA, Israel--(BUSINESS WIRE)--Feb. 21, 2005--The Board of Adamind Ltd. ("Adamind" or "the Company"), a software provider for the media adaptation market, announces that the Company's shares have today been admitted to trading on the Alternative Investment Market of the London Stock Exchange ("AIM"). The Company's trading symbol is "ADA".
    11,363,636 new ordinary shares have been allocated to institutional and other investors at a price of 132 pence per share (the "Placing Price"), raising approximately GBP 15 million for the Company. On admission to AIM a total of 35,363,636 ordinary shares were in issue capitalising the Company at approximately GBP 46.7 million at the Placing Price.

    Bridgewell is the Company's nominated adviser and broker.

    NOTES TO EDITORS

    Company Overview

    Adamind is a provider of media adaptation software that enables multimedia content applications and services to be accessible across disparate types of consumer devices such as mobile phones, personal digital assistants ("PDAs") and personal computers ("PCs").
    Adamind's core solution is branded MediaSpire and is primarily targeted at multimedia messaging service centre ("MMSC") vendors competing in the multimedia messaging service ("MMS") infrastructure arena, mobile telecoms operators ("Operators") and providers of content services accessible over mobile wireless networks ("Content Providers"). Adamind sells software licenses for its media adaptation products on an initial licence fee basis, a usage capacity basis and also charges a recurring annual support fee.
    Adamind's technologies solve the problem of person-to-person ("P2P") media transmission (one person sending images, video and ring tones, for example, to another person) between devices that are incompatible due to differing configurations and enable Operators to launch commercial MMS services that are available across a variety of different mobile phones and other devices. In addition, Adamind's solution provides media adaptation for the application-to-person ("A2P") content delivery market to enable A2P content services to take place. A2P defines premium content services which originate from Operators or Content Providers and are targeted to many consumers at the same time. As part of its A2P media adaptation offering, Adamind can offer further value-added services embedded within its software solution which could, for example, include an advertising and branding platform.
    Adamind was established as a separate company in 2004 following the merger of the media adaptation business units of Emblaze (LSE: BLZ) and Philips (AEX: PHIA, NYSE: PHG) with the goal of forming a global leader in media adaptation technology.

    MMS Overall Market Development

    The market in which Operators participate is highly competitive and they are continually focused on gaining subscribers and improving average revenue per user ("ARPU") which has traditionally been driven by voice calls. However, despite the rise in overall number of subscribers, Operators' ARPU has steadily declined over the past 10 years as air time has become commoditised and voice call revenues and profits have decreased. Faced with this, Operators have aggressively sought data based ARPU generators. These include the short message service ("SMS"), MMS, games and other content services. With the significant historic success of SMS and the expected plateauing of revenue from SMS in key global regions, Operators are now investing in the natural evolution of SMS, MMS, with the expectation of achieving similar rates of growth and revenue.
    MMS based services are considered by the Operators to be a key factor in generating ARPU growth and reducing churn. MMS enabled handsets have been growing and are expected to represent approximately 50 per cent. of all handsets sold in 2004, creating the demand required for the launch of commercial MMS services into the market. Mobile phone vendors such as Nokia, Motorola, Samsung, Siemens and Sony-Ericsson, that currently account for approximately 70 per cent. of the MMS handsets manufactured, continue to introduce new MMS enabled phones to the market on a regular basis. The Directors believe around $3 billion will be spent on MMS infrastructure in the next 4 years.
    With their focus on MMS services, Operators must make interoperability between devices a certainty by employing media adaptation technologies for a seamless usage experience independent of the source and destination device types. Without media adaptation, almost every MMS transaction will be a lost transaction as messages will not reach the target user or will reach them in an illegible or distorted format.
    The Directors believe that the growth in mobile messaging media adaptation will be driven by the growth in MMS usage. The P2P MMS services and usage market is forecast to grow to $13 billion in 2008, of which the Directors estimate the MMSC related vendor's revenue to be $1 billion. The Directors believe media adaptation represents between $100 million and $200 million of the MMSC related vendor's revenue.

    Key Advantages of Adamind's Technology

    The Directors believe that Adamind has now established itself as a leading media adaptation technology provider for MMS and that the following factors differentiate Adamind from its competitors and represent barriers to entry for potential entrants:
    Multi-Format Adaptation - The multi-format approach enables the service provider to build a product with a clear upgrade path to support the next generation of devices, formats, media types, protocols and services.
    Modular Architecture - To address the challenge of multi-component integration (i.e. media adaptation, message adaptation, Device Management Tool and unlimited applications) while reducing MMSC vendor dependency and maintaining the ability to easily support, upgrade and maintain the system, Adamind has developed a set of Application Programming Interfaces that allow quick and easy integration to any existing or future MMS or content download platform.
    Applications Over Core - Adamind's MediaSpire technology is easily extendable into other applications which ensures a short development cycle and a low cost of ownership for each and every application added into MediaSpire. Such applications will include value added services such as advertisement, digital rights management and anti-abuse software which can be built on top of the core platform, thus reducing the time and resources required for further development and customisation.
    Proven Product - Adamind currently has over 80 operational deployments and continues to build more as a result of the strong relationships it has established with the MMSC vendors. Adamind's technology is now known and accepted in the market and both MMSC vendors and Operators are keen to work with them.

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CONTACT: Adamind Shailendra Jain, CEO +44 20 7645 2990 on the day and thereafter +1 408 468 3961 or Emblaze Doron Cohen, Hagit Gal +972 9 769 9831/ 339 or Philips Andre Manning, +31 20 5977199 or Bridgewell Giles Elliott, Simon Bridges, Stephen Cheung +44 20 7003 3000 or Corfin Communications Harry Chathli, Neil Thapar +44 20 7645 2990

KEYWORD: ISRAEL INTERNATIONAL AFRICA/MIDDLE EAST INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS SOFTWARE PRODUCT SOURCE: Adamind

Copyright Business Wire 2005