AXIS Signs Heads of Terms

RNS Number:1163U
Axismobile PLC
09 May 2008




                                 AxisMobile PLC

                        AxisMobile Signs Heads of Terms

Further to the announcement on 30 April 2008, AxisMobile PLC (AIM: AXIS), the
consumer mobile email specialist, announces that it has entered into a
non-binding heads of terms ("HoT") agreement with a privately held US based
software company (the "Buyer"). The board of AxisMobile explored number of
alternative financing options as well as various corporate transactions and
currently considers the proposed transaction to be the best route to securing
shareholder value.

The Buyer has conditionally agreed, subject to due diligence, certain conditions
precedent and the execution and completion of a definitive sale and purchase
agreement, to purchase all of the assets and liabilities of AxisMobile in
exchange for shares in the Buyer (the "Transaction"). The board of AxisMobile is
in discussions with its convertible debt holders (approximately US$6.9m) with a
view to the convertible debt being converted into equity in the Company in
accordance with the terms of the debt instruments prior to or on completion of
the proposed Transaction.

The Company is also in advanced negotiations with its convertible debt holders
with a view to securing interim finance for the Company to secure its financial
position pending completion of the proposed Transaction.

Whilst the details of the HoT remain confidential at this time, the proposed
Transaction will require approval of the Company's shareholders and a further
announcement will be made in due course.


                                    - ends -

Enquiries to:

Uri Darvish, CFO and Finance Director              Tel: + 972 3 768 5555
AxisMobile                                         www.axismobile.com
                                                   --------------------

Josh Royston                                       Tel: [phone]
Threadneedle Communications


Mark Williams/Andrew Chubb                         Tel: [phone]
Canaccord Adams Limited



Notes to Editors

About AxisMobile

AxisMobile was founded during early 2000. It is a leader in the emerging market 
of consumer mobile email which allows consumers to access email via mobile 
telephone handsets.

AxisMobile's objective is to provide software that drives the mass market 
adoption of mobile email and related products by making multimedia
information portable, ubiquitous and easy to access on subscribers' existing
mobile handsets at an attractive cost. AxisMobile's email platform provides a
'one-stop-shop' for consumer mobile as it supports Web, WAP, IMAP4, MMS, SMS and
J2ME interfaces. Such interfaces cover most methods of transmitting mobile data
communications. AxisMobile's platform means that mobile operators no longer need
to integrate platforms from different vendors. This reduces costs. AxisMobile
aims to leverage customer relationships by offering additional products and
services based on its technology platform, hence producing cross-sales and
increasing the value to customers and to its shareholders.

Consumer mobile email represents a huge growth opportunity for mobile operators 
and vendors. The success of mobile communications has become a worldwide 
phenomenon with approximately 1.7 billion subscribers globally. In
2005, Forrester research estimated that the number of Western European consumer
mobile email users will increase from 12.3 million in 2005 to 62.7 million by
2008. During the same period, revenues from consumer mobile mail will grow from
Euro120 million per year to Euro1.15 billion per year in Western Europe alone. In the
US, Forrester estimates that the number of consumer mobile email users will
increase from 12.1 million in 2005 to 38 million in 2008 and that revenues will
soar from $13 million per year in 2005 to $406 million in 2008.

Further information on AxisMobile is available from the AxisMobile website: 
www.axismobile.com




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