Completion of Acquisition

InternetQ plc

('InternetQ' or 'the Company')

Completion of Acquisition

Acquisition of German mobile billing and content distributor to accelerate growth strategy

InternetQ (LSE-AIM: INTQ), one of the leading providers of mobile marketing and entertainment solutions, is pleased to announce that the acquisition of Atlas Interactive Deutschland GmbH ("Atlas") has now completed.

As announced on 2 July, InternetQ successfully placed 3,448,400 new ordinary shares at a price of 290p pence per share, raising gross proceeds of approximately £10m (€11.7m) to fund the acquisition of Atlas for c.£5m and to further support the next phase of its stated growth strategy. The Placing Shares represent approximately 9% of the Company's enlarged issued share capital and attracted strong institutional demand from shareholders in the UK and North America.

Atlas is a leader in access, billing and digital content distribution in more than 120 countries, connecting with more than 300 Mobile Network Operators ('MNOs') worldwide and operating a database of over 3 million opt-in users for mobile marketing campaigns.

For the year ended 31 December 2012 Atlas generated unaudited revenues of €23.5 million, unaudited EBITDA of -€0.5 million, showed unaudited net assets of €0.02 million and had no debt. The acquisition is expected to be earnings enhancing in its first full year.

The acquisition of Atlas is in line with InternetQ's stated strategy of broadening its geographical reach whilst further developing its service offering. The key benefits of the transaction are as follows:

·; Accelerate the expansion of InternetQ's services into Western Europe and Central & Eastern Europe ,which constituted c.90% of Atlas' revenue in 2012, namely Germany, Poland, France, Hungary and Czech Republic.

·; Increase Mobile Marketing activity with MNOs where Atlas has direct commercial agreements and very little overlap with InternetQ's current business.

·; Acquisition of Atlas offers the potential for InternetQ to enhance and accelerate accretive value for shareholders and drive greater levels of profit growth and EPS.

As stated in the Company's Trading Update issued on 11 July 2013, InternetQ has maintained its strong performance over the last six months continuing its excellent track record of underlying revenue growth across all its business divisions. Going forward, the board of InternetQ remains focused on its three core operational growth drivers:

·; Product Expansion; to leverage carrier relationships particularly with direct billing services to expand the Mobile Marketing product portfolio (e.g. Mcommerce, traffic networks, Mobile apps, or digital content).

·; Geographic Expansion; to accelerate customer acquisition, partner development and local content agreements or music rights for Akazoo, with particular focus on Latin America and MENA.

·; Customer Diversification; to diversify the current customer base and acquire relationships in non-carrier segments such as handset manufacturers and corporate brands.

Panagiotis Dimitropoulos, Chief Executive Officer commented:

"We are delighted to have completed our second significant acquisition since listing on AIM. Atlas presents an exciting opportunity for InternetQ to accelerate our strong organic growth. Atlas' established presence across Europe will allow Akazoo and our Mobile Marketing services to rapidly engage with some of the leading mobile carriers in the region, bringing forward our expansion plans by nearly 12 months.

With current trading strong and organic growth underpinning our success, the Board continues to remain confident in our future prospects."

For further details:

www.buchanan.uk.com 

About InternetQ plc:

InternetQ is a trusted global leader in mobile marketing and digital entertainment solutions. Through its proprietary technology platforms, InternetQ enables mobile network operators, brands, and media companies to conduct targeted, interactive and measurable mobile communications and pushes the frontiers in digital mobile entertainment. InternetQ is a publicly traded company listed on the AIM market of the London Stock Exchange, under the symbol INTQ.