Update on Heads of Terms

    RNS Number : 2748U
  Axismobile PLC
  13 May 2008
   

    Date:                  13 May 2008
    On behalf of:        AxisMobile PLC ("AxisMobile" or "the Company")
    Embargoed for 08:00


    AxisMobile PLC
    *     AxisMobile Update on Heads of Terms

    Further to the announcement on 9 May 2008, AxisMobile PLC (AIM: AXIS), the consumer mobile email specialist, announces additional
details of the non-binding heads of terms ("HoT") agreement it has signed.

    The HoT have been signed with a privately held US based software company (the "Buyer").

    Pursuant to the HoT, 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 the assets and liabilities of AxisMobile in exchange for consideration
shares in the Buyer (the "Transaction"). 

    The consideration proposed to be payable to the Company pursuant to the Transaction is the issuance of a minority of Preferred Stock in
the Buyer (the "Consideration Shares").  Full details of the rights of the Consideration Shares will be set out in any circular issued by
the Company in relation to the Transaction. Based on the Boards understanding of the last funding round undertaken by the Buyer in the first
quarter of 2007, and whilst the Board is not making any assumption as to the realisability of, or movement in, the value that any potential
purchaser of the Buyers shares may put on those share, the value of the shares to be received based on this price is on or around the
current market capitalisation of the Company's existing issued share capital.

    Upon, and subject to, completion of the proposed Transaction, it is proposed that a resolution be put to shareholders that the admission
of the Company's shares to trading on AIM be cancelled.  It is also proposed that, in due course and subject to the completion of the
Transaction, there will be a subsequent solvent winding up of the Company pursuant to which the Consideration Shares would be distributed,
on a pro-rata basis, to shareholders.  The Company 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 prior to or on completion of the proposed Transaction.  

    As previously announced on 30 April 2008, whilst AxisMobile continues to receive strong interest in its products and has won additional
new contracts with European and South American mobile operators there are no profits currently attributable to the assets the subject of the
Transaction.

    A further announcement will be made in due course.


    - ends -


    Enquiries to:

 Uri Darvish, CFO and Finance Director  Tel: + 972 3 768 5555
 AxisMobile PLC                         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 EUR120 million per year to EUR1.15 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 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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