Darkfall not Aventurines principal project

InternetQ is pleased to announce its investment in Aventurine, an award-winning independent digital game development company

Aventurine is active in the exceptionally cost-effective online games business for 8 years now & has been focusing on the online huge multiplayer niche, amongst the most challenging segments of the gaming sector. Most importantly, the Company has developed a technologically innovative, reusable program platform, with asynchronous & real-time distribution abilities and the capacity to interconnect millions of users in extremely engaging interactive environments. Its proof of concept product, called Darkfall Online, is an award-winning online enormous multiplayer game of fantasy, where thousands of DFUW gold players from around the globe can interact, cooperate or compete with each other. With the Darkfall's sequel launch later this year, Aventurine will have the opportunity to develop into a prosperous franchise.

The Company also develops casual games for online & mobile use and is in the process of designing a cross-platform (online, console, mobile) social game code-named AV-1.0. Furthermore, Aventurine is poised to break into Asia by means of a co-development agreement with 1 of Korea's considerable publishing companies, ensuring that the Business's products have a steady foothold in the speedily growing Asian industries.

Aventurine's approach is to develop sizeable communities of players that share regular characteristics & interests and spend substantial time engaging in gaming activities. By means of its extended network of billing gateways with mobile network operators, InternetQ can deliver these games to millions of mobile subscribers around the world; thus benefit from the important m-commerce opportunities together with the steady subscription revenue generated by this activity.

The Directors give consideration to this investment to be in line with InternetQ's strategy, as also stated in the most recent annual report & in which the company signalled its intention to invest in expanding both content and development capabilities. In addition, the Directors think that the particular financial commitment has both compelling business and monetary rationale as Aventurine's engaging technology will also boost the value of InternetQ's existing core goods, by providing the Group with an attractive opportunity to enhance the AKAZOO mobile platform, accelerate subscription revenue growth, together with further broaden the interactive software development abilities for mobile advertising.

More particularly, the financial commitment in Aventurine will:
Broaden InternetQ's abilities to offer its AKAZOO subscribers more complete entertainment services & that's why improve engagement, further accelerating revenue growth;
Tremendously grow InternetQ's software development abilities, a key function for the continuous development of the Group's mobile engagement platforms;
Permit for the immediate distribution of games (mainly casual) to mobile subscribers, the demand of which is increasing speedily around the world;
Allow for considerable cross-sell opportunities & delivery of mobile marketing campaigns to the gaming community; and
Exploit the important m-commerce potential of games which are increasingly being delivered on mobile devices.

The expenditure in Aventurine amounts to € two.6 million and will be effected by subscription to a convertible bond problem (the "Issue"). The Issue is linked to Aventurine's efficiency and will mature in March of 2015, while InternetQ will have the option to convert the bonds into equity at any time. Assuming the conversion takes place inside seven months from the launch of Darkfall's sequel (code-named Darkfall 2.0), InternetQ will own c.40% of the Company's share capital. Following such conversion, InternetQ will also have the alternative to buy further Company shares to be able to control most its share capital.

The expenditure will be funded by InternetQ's money reserves, in line with management's commitment to invest the proceeds from the most recent secondary providing to broaden the business in what the Directors believe it will be an accretive fashion. More specifically, the investment is expected to be earnings enhancing for 2012 by way of the receipt of a 6% bond coupon and has the potential to be earnings accretive in the years to follow assuming the successful launch of Darkfall 2.0.

The Situation proceeds will be used for:
The launch of Darkfall 2.0 in the US and Europe;
The co-development of the Asian Darkfall 2.0, which is to be a zero cost-to-play version of the original Darkfall Unholy Wars gold game;
The development of premium gaming entertainment content for InternetQ's AKAZOO platform.

Konstantinos Korletis, Chief Executive of InternetQ plc, commented:

"This outlay is at the heart of our previously announced plans to develop leading edge content for the converging space of mobile marketing with social media & entertainment services, which are all directed to enhance subscription loyalty. Expanding our product portfolio and being able to both cross and up-sell services to our subscribers will be crucial for our future success. Additionally, with the productive launch of Darkfall two.0 plus the development of Aventurine's other titles, we will be in a position to drive more focused mobile marketing campaigns to an even more affluent pool of subscribers."

Panagiotis Dimitropoulos, Founder and President of InternetQ plc also commented:


"The purchase in Aventurine is a very thrilling moment for us. Combining InternetQ's leading role in mobile value added services with the innovating social entertainment experience of Aventurine, will enable us to enrich the experiences of our loyal subscriber base, further strengthen our well-established R&D abilities, & give us a powerful platform for continued expansion in the global marketplace. "

For further particulars

InternetQ
Konstantinos Korletis, Chief Executive Officer
Veronica Nocetti, CFO

Tel: +30 (211) 101 1101
Tel: +30 (693) 260 0128
Tel: +30 (694) 420 5275

Buchanan
Jeremy Garcia / Gabriella Clinkard
Tel: +44 (0)20 7466 5000

Grant Thornton Corporate Finance
Philip Secrett / David Hignell
Tel: +44 (0)20 7383 5100

RBC Capital Industries
Stephen Foss / Pierre Schreuder / Daniel Conti
Tel: +44 (0)20 7653 4000

About InternetQ plc:

InternetQ is a trusted global leader in mobile advertising & digital entertainment solutions. By way of its proprietary technology platforms, InternetQ enables mobile network operators, brands, & media businesses to conduct targeted, interactive and measurable mobile communications & pushes the frontiers in digital mobile entertainment.

InternetQ is a publicly traded company listed on the London Stock Exchange's AIM, under the symbol INTQ.