Mobile value-added services provider iTouch acquires Jippii Mobile Entertainment for access to Russian and Eastern European markets

July 21, 2004

2 Min Read

LONDON -- iTouch plc ("iTouch" or "the Company"), a leading European mobile value added services provider, has agreed to acquire Jippii Mobile Entertainment Oy ("Jippii") for an initial consideration of €12 million, made up of €5 million in cash and €7 million in iTouch ordinary shares. Jippii, a wholly-owned subsidiary of Saunalahti Group Oyj, ("Saunalahti"), is a pan-European provider of mobile entertainment services with offices in six countries and connectivity agreements with 74 network operators in 20 countries. The transaction is expected to be completed in September. In addition, deferred consideration of up to a further €18 million in iTouch ordinary shares is payable depending on the financial performance of Jippii over a 12 month period. The acquisition is expected to be earnings enhancing in 2005.

iTouch will gain immediate access to new markets in countries including Russia, Finland, Ukraine, Estonia, Lithuania, Latvia, The Netherlands, Switzerland, Belgium, Austria, Sweden and Norway. Jippii has also established a popular pan-European youth brand via an on-line gaming portal with 2.8 million users playing over 30 million gaming sessions on a monthly basis.

Wayne Pitout, CEO of iTouch plc commented: "This acquisition represents a key strategic move for iTouch, providing direct access to important new markets in Eastern Europe, a leading position in Russia, Switzerland and Belgium, and a popular pan-European internet brand which will form the basis of our medium term mobile internet offering."

Rami Ryhänen, CEO of Jippii commented: "iTouch is the ideal partner for Jippii. We wish to use their new products and conent acoss Jippii terriories to aggressively dive transactional volumes. Similarly, we look forward to extending the Jippii brand into iTouch territories, which will increase our footprint to 25 countries by the end of 2004."

iTouch plc

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