NAPS Napster Group Plc

 
TIDMIPNT 
 
18 June 2010 
 
                               iPoint-media plc 
 
                       ("iPoint-media" or "the Company") 
 
                      Trading updateand strategic review 
 
During the first six months of 2010 the Company has experienced significant 
slippage on tenders submitted in conjunction with its strategic partner 
Ericsson, to telecoms companies that were anticipated to be signed and 
delivered prior to 30 June 2010. As a consequence, the Company's revenues for 
the six months ending 30 June 2010 will be substantially below market 
expectations and the Company loss for that period is estimated to be in the 
order of GBP0.7 million. 
 
This delay in revenues has impacted the Company's ability to meet its working 
capital requirements. As a consequence, the Company is taking immediate action 
in implementing a cost reduction programme to reduce operating costs in the 
order of 25%, including cuts in employee related expenses. However, unless the 
Company is able to generate increased revenues in the short-term it will 
require an injection of cash in order to continue operating as a going concern. 
 
In addition to the review of its cost base, the Company's management, after 
conducting a strategic review, has determined to concentrate the Company's 
resources in pursuing opportunities in the media market, given the difficulties 
experienced in the Telecoms market. Accordingly, the Company announces that, 
while it will continue to support its strategic partnership with Ericsson, it 
will be focusing on expanding sales of its new products GOliveINTERVIEW and 
GOliveSTUDIO to the media market in China. 
 
GOliveStudio is a WEB/Mobile TV production tool that provides new media 
connectivity and Internet content repurposing at a fraction of the cost of 
hardware-based solutions. In addition, the Company's "GOliveInterview" product 
enables broadcasters to conduct a live interview with a reporter equipped with 
no more than a standard computer laptop, camera, and iPoint-media reporter 
software. The target market for GOliveInterview will be Chinese media 
companies, and the target market for GOliveStudio will be Chinese Radio/Web/ 
Mobile TV stations. The Company estimates that there are over one thousand TV 
broadcasters in China, representing a very substantial market opportunity for 
iPoint-media. 
 
Muki Geller, iPoint-media's CEO, commented: 
 
The continuing slowdown in the Telecoms market has proved a major challenge to 
the Company's efforts to generate revenues through the Ericsson channel with a 
consequent negative impact on our cash flow. 
 
On the other hand, the Chinese media market represents a significant 
opportunity for us and is attractive in that is has been less affected by the 
global economic slowdown. There is a real need for our products and solutions 
in this market place and we are working with significant channel partner in 
order to capitalize on these opportunities. We are seeing signs of strong 
demand and interest in these products and we are setting up a Chinese delivery 
entity to support our large Chinese partner, who acts as the sales channel, in 
fulfilling the market demand. 
 
Further enquiries: 
 
iPoint-media plc                                           +(0) 972 544 450 667 
Muki Geller 
 
Libertas Capital Corporate Finance Limited                     +44 20 7569 9650 
Thilo Hoffmann/ Andrew McLennan 
 
 
 
 
END 
 

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