22 July, 2004: European mobile value added services provider iTouch plc is to acquire Jippii Mobile Entertainment Oy for an initial consideration of €12mn, made up of €5mn in cash and €7mn in iTouch ordinary shares. Jippii, a wholly-owned subsidiary of Saunalahti Group Oy, 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 €18mn 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.

The acquisition of Jippii provides iTouch with a springboard into Russia, which it believes to be one of the fastest growing markets in Premium SMS services and to be worth an estimated US$100mn in 2003. iTouch believes Russia has 47 million mobile users and that this figure will grow to 60 million by the end of this year. Jippii, a market leader in Russia, has connectivity agreements with 12 Russian operators and currently holds marketing agreements with MTV and Pepsi in the region.