Result of EGM

RNS Number:9600Q
Trading Exchange (The) PLC
07 September 2005



For immediate release 7 September 2005

                 Trading Exchange PLC ("Trading Exchange PLC")
                                 Result of EGM

The Board of Trading Exchange PLC is pleased to confirm that the resolutions
proposed for consideration at the Extraordinary General Meeting of the Company,
which was held today in London, to approve, inter alia, the reverse takeover of
the Company by EBT Mobile Limited (the "Acquisition") and the placing of new
ordinary shares to raise #4.0 million (the "Placing") were approved.

The Acquisition and the Placing remain conditional on, among other things,
Admission, which is expected to occur at 8.00am tomorrow, 8 September 2005. Upon
Admission the Company will change its name to EBT Mobile China plc, and trade
under the ticker "EBT".
 
Based on the share price of the Company at the close of play on the 6 September
2005, being the latest practicable date prior to the release of this
announcement, EBT Mobile China plc will be valued at approximately #45.0
million.

Jim Reiman, Chairman and CEO of EBT, said:

"Joining AIM is an important milestone in our progress. EBT is at a relatively
early stage in its development but it is already an established mobile phone
retailer in East China with over seventy outlets and excellent relationships
with other retailers, handset manufacturers and service providers.

"Access to additional capital will enable us to accelerate the growth of our
retail network which is a key objective and I believe that the Group represents
a unique opportunity to capitalise on its position in growth sector within a
vast and expanding market.

"We think that EBT is well positioned to create a true national brand within our
sector and, ultimately, become China's leading national mobile retailer."

For Further Information Contact:

Jim Reiman, Chairman and CEO
EBT                                                                0798 1690 990

Martyn Konig, Executive Director
The Trading Exchange PLC                                           0700 4956 956

Henry Turcan/ Tom Price / Bobbie Hilliam
Evolution Securities Limited                                       0207 071 4300

Terry Garrett/ John Moriarty/Stephanie Badjonat
Weber Shandwick Square Mile                                        0207 067 0700



                               Background on EBT

EBT Mobile

The Business

EBT Mobile is a Chinese based retailer of mobile telephone products and
services, including mobile phones, SIM cards, cell phone accessories, and cell
phone related value-added services. EBT Mobile's brand has been in the Chinese
market since 1996 in Shanghai and since that time has expanded, as of 1 July
2005, into additional cities near Shanghai (Suzhou, Kunshan, Hangzhou, Jiangyin,
Wuxi, Zhangjiagang, Xuzhou and Changshu).

EBT Mobile operates in China with the slogan "EveryBody Talk" targeted at the
service driven customer.

Many of EBT Mobile's retail outlets are located as "outlets within stores" in
department stores and "big box" hypermarkets including Carrefour, one of the
leading hypermarket chains in PRC with approximately 60 hypermarkets in China,
and Lotus. EBT Mobile has relationships with China Mobile and China Unicom's
local branches (currently China's only mobile cellular network service
providers) and operates co-branded outlets and service centres with both
companies.

EBT Mobile also has long standing relationships with many of the leading PRC and
foreign cellular handset manufacturers which include direct purchasing rights
with Nokia and Haier.

EBT Mobile's main product line is mobile handsets which accounted for
approximately 85 per cent. of revenues in 2004 followed by SIM cards which
accounted for approximately 14 per cent. in the same period. In 2004, EBT Mobile
sold approximately 173,000 handsets.

EBT Retail Outlets
As at 1 July 2005, EBT Mobile's retail network consisted of 49 outlets in
Shanghai, 15 outlets in Suzhou, 3 outlets in Hangzhou, plus single outlets in
Kunshan, Jiangyin, Wuxi, Zhangjiagang, Xuzhou and Changshu. EBT Mobile has
targeted organic outlet growth to increase the number of outlets within the
network to over 90 by the end of the current financial year.

As at 1 July 2005, of EBT Mobile's 73 retail outlets, 5 were co-located with one
of the two major cellular network operators (either China Mobile in Shanghai, or
China Unicom in Suzhou) and 57 outlets were located inside major department
stores, including Carrefour and Lotus where the sale is made in conjunction with
the store operator.

The Proposed Directors target the retail store profile so as to attract the
higher income sector on the basis of good quality and service rather than just
price.

EBT Operations

EBT Shanghai is EBT Mobile's Shanghai retail operations company. EBT Suzhou is
EBT Mobile's retail operations company for the Jiangsu and Zhejianq Provinces.
iAtoZ Beijing operates EBT Mobile's website and is the company through which all
electronic sales of goods and services will be conducted.

EBT Trade conducts EBT Mobile's non-retail operations business, including the
purchase of handsets and other merchandise from manufacturers. EBT Trade then
distributes products to the EBT Mobile retail operating companies. It also
houses centralised functions including finance, training and human resources.

Market Opportunity of the Enlarged Group

As at the end of June 2005, China had approximately 363.2 million mobile phone
subscribers, accounting for approximately 28 per cent. of the Chinese population
at that time (Source: MII). Sales of mobile phones in China totalled
approximately Yuan 68.9 billion for the first six months of 2005 (Source: CCID
Consulting). With an estimated population of approximately 1.3 billion people,
China is one of the largest mobile telephone markets in the world, though its
penetration rates are half those found in the UK and USA.

The Proposed Directors believe Chinese mobile user penetration will reach the
rates to be found in developed countries of approximately 70 per cent. This
implies a long-term active mobile subscriber population in China of
approximately 900 million people and implies approximately an additional 535
million new users to the reported subscriber base of 30 June 2005.

Owing to China's currently cash-based economy (credit and electronic payment
mechanism are not widely used) the majority of Chinese mobile users work on a
"pre-pay" mobile credit system rather than on a contractual basis. The Proposed
Directors believe therefore that the growth of mobile subscribers, together with
the introduction of new mobile technologies and development of mobile data
communications, will require a network of physical retail establishments where
such goods and services can be provided and paid for, and to support the network
operators' efforts to convert pre-pay customers to term contract customers.

Key Strengths of the Enlarged Group
The Enlarged Group Board believes the following to be the Enlarged Group's key
strengths:

   * an established reputation and brand as a mobile telephone retailer in
    the Shanghai and Suzhou markets;


   * relationships with key mobile industry companies, such as China Mobile
    (Shanghai Branch), China Unicom (Suzhou Branch), Nokia and other handset
    manufacturers;


   * relationships with a number of Chinese retail chains, including
    Carrefour, Lotus, NEXT Mart and RT Mart enabling the Enlarged Group to
    pursue an aggressive expansion strategy.

The Enlarged Group Board believe that these key strengths will allow the
Enlarged Group to pursue its growth strategy, capitalise on current market
trends and consolidate and increase its market share, revenues and profits
within the Chinese mobile market.

Business Strategy of the Enlarged Group

The strategy of the Enlarged Group will be to entrench the position of EBT
Mobile in its current markets and, primarily through organic growth, expand
nationally throughout China and, ultimately, become China's leading national
mobile retail network.

The Enlarged Group will initially focus its expansion within the Yangzte River
basin and, in due course, cities in other regions. As this expansion occurs, the
Proposed Directors expect to increase profit margins as sales volumes increase
through additional outlet openings, which should allow the Enlarged Group to
negotiate improved terms from suppliers.

Additionally, the Enlarged Group plans to introduce higher-margin value-added
products and services, and provide a retail platform to support the sale and
service of a full range of mobile content offerings including games, music,
ring-tones and other services and intangible products. Through its network, the
Enlarged Group plans to be able to provide customer interface and money
collection facilities for sellers of such value-added services.

The Enlarged Group plans to continue to invest in its brand through staff
training, outlet refurbishment, event sponsorship and other advertising with the
intention of targeting the quality and service driven customer.


Controlling Shareholders

On Admission certain shareholders of the Enlarged Group whom the Panel on
Takeovers and Mergers deems to be acting in concert (the "Concert Party") will
own approximately 87,276,224 Ordinary Shares (representing approximately 56.03
per cent. of the Enlarged Issued Ordinary Share Capital). Further to this, the
Concert Party will through the exercise of options in the Company be able to
acquire up to an additional 14,479,082 Ordinary Shares. These additional
Ordinary Shares under option when added to the post-Admission holdings of the
Concert Party would amount to 101,755,306 Ordinary Shares, representing 58.08
per cent. of the Ordinary Share capital as enlarged as a result of the full
exercise of the options by the Concert Party only.





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

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