Commercial agreement with Dutch MVNE

Artilium plc

('Artilium' or the 'Company')

Commercial agreement with Dutch MVNE

Artilium plc is pleased to announce that it has agreed the commercial terms of the agreement with Narrowminds B.V. ("Narrowminds") initially announced in October 2010 in relation to the setting up of a new Mobile Virtual Network Enabler ("MVNE") in the Netherlands. The agreement is based on a one time implementation fee of €350,000 which has been paid to Artilium, a minimum monthly fee once the MVNE goes live and a monthly recurring revenue based on the number of users serviced.

This pay-as-you-go model allows Narrowminds to build up its business without significant up-front costs, while Artilium will financially benefit from the expected uptake of subscribers serviced by Narrowminds. It is estimated the contract will generate between €3.5 - €4.0 million in revenues over the first five years. Under the contract, Artilium will deliver a full suite of functionalities based on its ARTA technology, enabling Narrowminds to service economically Mobile Virtual Network Operators ("MVNO") with as little as 1,000 subscribers.

MVNOs are becoming increasingly popular as corporate entities recognize the potential to use a tailored mobile offering to increase customer loyalty and create new marketing opportunities, including SIM embedded location based and presence services. Artilium's scalable technology fully facilitates a trend of further fragmentation of the mobile market, with MVNOs focusing ever more on niche segments.

Maarten Bisseling, CEO Artilium commented: "This agreement confirms the position of Artilium as the supplier of choice for industry players in the mobile sector. We are very excited about this contract as it allows us to roll out the full functionality of our Mobile Community and Location Services in integrated offerings. After we became the pre dominant player in the Belgium market, we targeted the Netherlands and we will announce more contracts in this market shortly".

For further information contact:

Artilium PLC:+32 (0)50230300Adrie ReindersMaarten Bisseling

Arbuthnot Securities:+44 20 7012 2000Antonio BossiEd Groome

Cardew Group

+44 20 7930 0777

Tim Robertson

Jamie Milton

Alexandra Stoneham

About Artilium

Founded in 1995, Artilium develops and sells software solutions to telecoms companies and service providers under its ARTA family of products. Its clients include BT, Vodafone Spain, Ziggo (NL), Belgacom Mobile (BE), Lebara, Telenet and KPN.

ARTA enables telecoms companies to market to consumers in a highly targeted manner, creating packages which are tailor made to groups of subscribers such as a municipalities or interest groups.

ARTA technology provides:

·; A low cost solution for creating a commercial communications network for communities and companies. Used by major Mobile Virtual Network Operators and smaller Operators targeting subscriber bases of 1,000 and higher.

·; A low cost, low power drainage use mobile phone based alternative to GPS for movement tracking for customers ranging from haulage firms through to families wishing to know where their children are.

·; A real time, low cost rerouting of calls to provide the most efficient solution to Mobile Network Operators and Mobile Virtual Network Operators.