Motive Television Plc : Trading update

London: 16 January, 2012 - Motive Television PLC, the digital television technology, software and services provider, is pleased to provide the following trading update for the financial year ended 31 December 2011. 

The year ended 31 December 2011 was one of both great accomplishment and challenge for Motive and the Directors are pleased to report that they expect the results for the year ended 31 December 2011 to be broadly in line with market expectations. In 2011, Motive integrated two acquisitions, technologies and management teams, redefined the Company's products and services under the Television Anytime Anywhere concept and in the last half of the year took these solutions to market. As a result, the Company is well positioned to reap the rewards of the initiatives set out below during 2012.

Contract development

The industry response to Motive's offer has been very positive considering the transformational nature of our products. Motive's products and services are in various stages of evaluation, consideration, testing and implementation by potential customers in three continents.  

The implementation of Motive's patented Television Anytime technology at Mediaset, which commenced at the end of 2009, has grown to over 300,000 homes and generates significant recurring monthly revenue for Mediaset and adds credibility to Motive's offering. 

Digiturk, Motive's second implementation, is now beginning the process of integrated system acceptance testing, which involves running the Company's technology with that of other vendors for the first time. Following completion of this testing, which is expected to take several weeks, the Directors expect the system will be ready for launch by Digiturk.

In addition, Motive has a market test beginning shortly with Granite Broadcasting Corporation's television station in San Francisco and the Company is hopeful that it will provide further proof of the Company's capabilities to the US market.

Motive is awaiting completion of an agreement between a technology partner and Media Networks Latin America ("MNLA") in Lima, Peru. Following such an agreement, Motive expects to start its pilot with MNLA in which Motive's technology will be exhibited to pay television platform providers from across South and Central America.

Furthermore, as announced on 12 October 2011, Motive has signed a Letter of Intent ("LOI") with CME Media Services Limited, a wholly-owned subsidiary of Central European Media Enterprises Limited ("CME"). The LOI outlines the provision by Motive of certain advisory and consulting services regarding Motive's Television Anytime Anywhere technologies, which follows the technical pilot test of the technologies by CME in 2010 and the initial planning project that Motive undertook with CME in 2011. Motive remains confident of a future implementation of its technology with CME.

As a supplier of software and service platforms to major television industry companies, Motive is subject to the timetables of its clients and their prospects. Motive's software must be integrated into and with hardware and software of other suppliers and completing sales and deployments of the Company's technology is greatly influenced by other companies' schedules.

Outlook for 2012

As set out above, Motive has spent 2011 refining its product offering, showcasing the abilities of the Television Anytime Anywhere technology to the market and seeking to capitalise on interest from the industry. The Company is pleased to report that Motive has enjoyed some significant success in gaining recognition of the Company's products among major broadcasters, cable and satellite pay television operators and other participants in the video industry in both Europe and the Americas.  

This interest has developed into pilots, market tests and technical trials that are underway or starting in the first quarter of 2012 among large international broadcasters and pay television platforms. It has also led to plans for joint technology development projects with television companies to apply Motive's capabilities to specific needs in new ways. The Company hopes to be able to announce news about these new pilots, tests and development projects in the near future.

In addition, Motive has refined its business model and is now progressing discussions with a number of broadcasters and pay television operators about moving from the pilot or testing phase to full deployment of the Motive platform. 

As shareholders are aware, the business environment in Europe and America was depressed in 2011 and companies have been very cautious to move forward with investment in new capabilities. Motive saw the effect of these headwinds in its efforts to turn decisions and intentions among prospective clients into contracts for deployment. Negotiations have taken longer than were originally anticipated and, in some cases, additional hurdles were added during the process. 

The good news is that, at least in the United States, the market appears to be looking more optimistic and businesses are exhibiting signs of renewed confidence. This will have a direct effect on Motive's ability to complete sales in 2012 and indications are that the United States will be an important market for the Company. As set out above, Motive is developing its relationship with Granite Broadcasting and is in active discussions with major cable operators and other broadcasters.

In Europe, the market remains sluggish due to the financial crisis and the policies of austerity rather than growth that dominate economic thinking. As such, while Motive is confident about closing important sales that were initiated and progressed during 2011, until the business environment becomes more positive, it will remain challenging for any B2B provider to get firm commitments. Thus the goal for Motive in Europe in 2012 will be to complete a number of open sales discussions.

As set out above, Motive expects to start its pilot with MNLA in which Motive's technology will be exhibited to pay television platform providers from across South and Central America.

Asia and South America have remained somewhat insulated from the global downturn and Motive is exploring opportunities in these fast-growth markets.  

In summary, despite the business downturn, Motive is poised to capitalise on the market acceptance and interest achieved in 2011 and is confident that it will be able to announce further pilots, deployments and contracts during 2012.  

Leonard M. Fertig, CEO of Motive Television plc, said: "The Company is in a better position than ever before and with game-changing products, a stronger management team and enhanced market awareness it is looking forward to this year being one in which Motive moves from a development to operational focus."

Contacts:

Motive Television plc

Michael Pilsworth, Chairman

Leonard M. Fertig, CEO

T: [phone]

Merchant Securities (Nominated Adviser)

Simon Clements / Virginia Bull

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XCAP Securities (Broker)

Jon Belliss / John Grant

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Financial PR

Cubitt Consulting

Chris Lane / Alice Coubrough

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Brainerd Communicators

Chris Plunkett / Mike Smargiassi

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Media PR

Gerry Buckland

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Notes to Editors

Motive Television provides software and services to the global television industry, enabling Television Anytime Anywhere. Motive's patented and proprietary technology platform responds to the heightened viewer demand for watching what they want, when they want, on whatever device they want; and is driven by the mandatory switchover from analogue to digital broadcasting as mandated by the International Telecommunication Union.

Motive Television provides broadcasters and pay television operators with enabling technology that provides opportunities to deliver highly-valued services to viewers that generate additional income and retain existing subscribers, comprising:

Television Anytime. A technology platform that enables digital broadcasters and pay television operators to offer enhanced broadcasting services with or without the need for an Internet connection. These services, includes, among others, Video-on-Demand, Catch-Up TV, Virtual Channels, Sneak Preview TV, and Targeted Advertising. Television Anytime is currently in commercial operation in Europe both in digital terrestrial (DTT) and soon in satellite (DTH) environments. Patented in Spain and patent pending in the EU.

Television Anywhere. An advanced multi-screen multi-channel technology that allows a viewer to control and watch all the content received by or recorded in their main home television equipment on any computer, mobile phone, iPad or any other Internet connected device. Television Anywhere is software-based and can be updated via software upgrades on existing STB. US patent pending.

Motive's content division is:

Motive Television Ireland Limited, a Dublin-based award-winning independent production company that produces factual programmes for Irish broadcasters. It specializes in live sports production and sports documentaries and also produces factual and entertainment series.

Motive Television was founded in London in 2005 and its shares are quoted on the London Stock Exchange (AIM).