MobileMail Announces Partnership Agreement Between Tracebit, Ltd. And Pinjata
LONDON -- MobileMail (US) Inc. (OTCBB: MBMU) is very pleased to announce that its wholly owned subsidiary, Tracebit Ltd, has entered into a Partnership Agreement with Pinjata, an internationally renowned producer and distributor of market-leading, and fast-growing PC and mobile games designed specifically for the youth market. Pinjata produces games that are informative, fun and, most importantly for parents, safe for their children.
Pinjata’s main task is to develop and produce computer games, mobile games and other fun products with their excellent range of child friendly cartoon characters. The concept behind their internationally renowned games is that it should be fun for children and safe for adults. Pinjata’s mission is to deliver games for children which do not contain any form of controversial material. Instead they wish to entertain, activate and educate the players.
Pinjata, headquartered in Goteborg, Sweden, has experienced 3 years of exponential growth with revenues increasing year on year by an average of 30%. In 2006, revenues were over $1,000,000 and are projected to rise to $3,750,000 in 2007. Pinjata sells its products in the Nordic region and Middle East. Their success throughout the Scandinavian and the Middle Eastern markets has provided an extremely strong base from which the company is looking to grow with the United States as its next target market. The partnership agreement with Tracebit provides an excellent opportunity to utilize Tracebit’s extensive and fast growing distribution network of over 150 leading network operators, Value Added Resellers and mobile service providers across Europe, Asia and North America, ideal markets for Pinjata’s politically correct and educational mobile content. The partnership provides Tracebit with access to a unique portfolio of 20 innovative multi-lingual mobile games and management expects to aggressively increase revenues in these key markets in line with their ongoing aggressive expansion strategy.
The age of mobile phone users is falling fast and the numbers of children using mobile phones is growing. In 2001, 13% of primary school children had a phone(1), by 2006 51% of 10 year olds have a mobile phone and by 12 years old 91% of secondary school children are mobile users(2).
Simon Adahl of MobileMail said, “It’s not just that the numbers are growing, these children are spending money. We are already seeing companies producing mobile phones specifically for children such as the FireFly and Buddy Bear handset in order to tap in to this lucrative market.”
Worldwide spending by young people on mobile phone-related products and services is worth $1.1 trillion. In the UK, kids spend $5.4bn a year on mobile technology(3).
There has been a lot of concern with children playing violent and inappropriate games and the psychological effect this has on children’s development. Content analyses show that a majority of video games include violence and other studies have shown that playing a lot of violent video games is related to having more aggressive thoughts, feelings, and behaviors(4). Aware of these concerns, Pinjata has identified a niche in the market in producing family/child friendly games which are proving to be very popular with both children and their parents.
The Pinjata partnership also provides a great opportunity for Tracebit to extend the market penetration of its own leading edge portfolio of mobile content and entertainment solutions. Pinjata has a number of distribution agreements with leading international network operators based in the Middle East who are looking to quickly disseminate the very highest quality mobile games. Pinjata has recently signed a deal with Dubai operator with over 400 outlets in 21 countries as well as another partnership deal in the region that covers 8 countries with a potential market reach of in excess of 800 million customers, a fantastic future source of revenue for Tracebit’s ever expanding portfolio of branded mobile content.
Tracebit has been granted a license to sell and distribute 20 mobile games, created by Pinjata through Tracebit’s sales channels. Future games from Pinjata can be added to the agreement as they are developed. The revenues that arise from the sales through Tracebit’s sales channels are shared 50/50 between the parties. The agreement runs for the first 36 months, to be extended for 12-month periods after that. Furthermore, Pinjata’s PC and mobile games will soon be made available, along with all of Tracebit’s mobile content, on their online & mobile sales portal that will be released later this year, increasing direct to consumer sales.
This transaction broadens and expands the offering to Tracebit’s clients all over the world, adding game genres that Tracebit hasn’t had in its portfolio previously. As this in turn will increase sales, it is integral to MobileMail’s plan to be a developer, aggregator and seller of premium next generation bundled mobile products.
“Pinjata’s unique portfolio of PC and mobile games have a proven record of generating excellent revenues in all markets entered. I am really looking forward to introducing their games to our extensive distribution channels, especially entering into the US market where this content will have a huge impact on our revenue streams,” said Simon Adahl, CMO of MobileMail. “Their products are a great addition to our own. We look forward to a rewarding business relationship with them.”
Pal Brathen, Managing Director of Pinjata added, “We are delighted to be offering Tracebit a license to distribute our games through their network of mobile distributors, helping us to increase our sales. I strongly believe our casual content will be a big hit in the US market and look forward to a very beneficial partnership for all of us.”
About MobileMail and Tracebit
MobileMail is a leading multimedia content and service provider. As part of its strategy, MobileMail has recently acquired the leading Finnish developer of mobile multimedia and gaming content, Oy Tracebit AB, which is one of the longest standing European mobile gaming and application developers. Tracebit has added more than 150 sales channels and distributors all over the world to MobileMail’s existing client base. MobileMail is undertaking an aggressive sales strategy through these new sales channels consisting of global telecom operators and mobile service aggregators enabling sales to Vodafone, Sprint, China Telecom, and Orange among others. MobileMail is looking to expand its business further through new strategic acquisitions of other mobile service providers in 2007.
MobileMail has been very active on all fronts in building out its business plan to become the leading multi-media content and service provider within the mobile industry. “The company is assembling an extremely experienced senior management team and board of directors to help shape the company’s strategy in its planned expansion into the North American and Asian markets,” comments Gary Flint, Director of Business Development. “To this end, the management has identified a number of further acquisition targets operating in the mobile industry, all generating in excess of $4 million that fit perfectly with MobileMail’s aggressive business strategy. The incoming management has decades of collective experience in creating winning strategies for several businesses operating in the mobile and technology industries. I am extremely confident their experience and contacts will significantly increase the revenue base of the company in 2007 and beyond.”
Simon Adahl, CMO, follows up, “The company is quickly building its portfolio of branded mobile content and entertainment solutions and has two new mobile games that will be launched in the very near future with partners that are household names within their sports. I am absolutely delighted the progress of the company since the acquisition by MobileMail.”
MobileMail is ideally positioned to become the leading multimedia content and service provider within the mobile industry through the creation of its one-stop shop for purchasing and distributing the very best in online and mobile content and entertainment solutions, creating an interactive online “YouTube” style portal, and developing a mobile on-line community in line with a mobile “MySpace.”
FORWARD-LOOKING STATEMENTS: Statements about MBMU’s and Pinjata’s future expectations, including future revenues and earnings, game production and market penetration, and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. MBMU’s and Pinjata’s actual results could differ materially from expected results. Neither MBMU or Pinjata undertake any obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events relating to MBMu and/or Pinjata occur which materially affect any comments made within this objective; MBMU will immediately and appropriately inform the public.
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