mTouche Registers Q407 Losses, Expects A Profitable 2008

mTouche Technology

KUALA LUMPUR, 19 FEBRUARY 2007 – Mesdaq listed mTouche Technology Berhad (mTouche) today announces its results for fourth quarter of financial year ended 31 December 2007 (Q4FY07). The Group announces a revenue and loss of RM45.2 million and RM12.5 million respectively.

The Group’s revenue is down by 15.2 percent from RM 53.3 million of the same period ending 31 December 2006. Its fourth quarter record loss of approximately RM17.8 million as compared to a profit of RM6.0 million from the previous quarter, is in line with anticipation of lower revenue generated due to adverse market condition.

mTouche’s Chief Executive Officer, Eugene Goh, says the Group’s less than satisfactory results were mainly due to a decline in market share, resulting from a competitive environment and a highly regulated industry.

The company’s loss position is due to higher expenses incurred, which includes several one-time charges stemming from the company’s heavy regional expansion via acquisitions of new subsidiaries, professional fees incurred, foreign exchange loss, provision of doubtful debts and impairment of goodwill, higher depreciation and amortization of intellectual property.

“In 2006, we expanded relentlessly with new set-ups in the regional, and investment via acquisition in excess of RM30 million. With intense competition in the region, some acquisitions did not do as well as expected and were subject to impairment of goodwill. So last year we re-assessed some investments which were not strategic to our growth going forward, and tightened our revenue streams. mTouche is working on a new clean slate and have seen the last of the difficult times,” says Goh.

Going with Mobile Advertising in 2008

Moving on in 2008, mTouche is confident that its investments in Hong Kong and Vietnam will start to pay off, with solid revenue contribution coming in from its numerous partnership alliances forged within the region’s mobile content and distribution network.

“For one, mTouche is setting its sights to be the biggest regional mobile media player in 2008. We are very excited to be announcing details of our collaboration with one of the world’s largest web2.0 company later this month. Through mTouche’s mobile platform, the web2.0 company will launch into the lucrative mobile advertising market in Asia,” Goh added.

Goh sees contribution from mobile advertising to make up a significant part of the company’s revenue starting this year. “Through mobile advertising, mTouche will make money with every impression received… through this collaboration, we target to receive more than 500 million impressions by end of the year, you can see that revenue input is real and just around the corner.”

mTouche has also launched its Mobile Advertising Platform at the 3GSM Mobile World Congress in Barcelona this week. mTouche’s Mobile Advertising Platform provides a framework infrastructure for publishers and advertisers for optimization of mobile advertising on mobile sites.

“Mobile advertising is about reaching out to as many end-users as possible, and we have the solutions to maximize our partners’ opportunities. Apart from focusing on our core business, 2008 will be an exciting year for mTouche, as we are clearer on our strategic path. We anticipate much better results for 2008,” says Goh.

Earlier Goh earlier shared mTouche’s mobile advertising platform launch in China last month, “We are already seeing over 2 million impressions since the China launch, and we target to see 100 million impressions per month by June and 500 million impressions a month by year-end.”

About mTouche Technology Berhad

mTouche Technology Berhad is involved in the provision of mobile short messaging technologies such as mTouche Intelligent Short Messaging Platform and mTouche Content Provisioning Platform. It is a forerunner and leader with expertise in mobile messaging technologies and interactive media applications (which includes television, radio and press) in South-East Asia with operations in Malaysia, Singapore, Indonesia, Thailand, Hong Kong, Vietnam, India and China.