Half Yearly Report

GLOBO plc

INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2011

Globo plc (LSE-AIM: GBO), the international IT, mobile solutions and SaaS provider, is pleased to announce its interim unaudited results for the 6 months ended 30 June 2011.

Financial Highlights for the first half of 2011:

·; Revenues increased by 56.5 per cent to €19.61 million (H1 2010: €12.53 million)

·; Profit before tax increased by 123.9 per cent to €3.18 million (H1 2010: €1.42 million)

·; Earnings per share increased by 28.6 per cent to €0.009 (H1 2010: €0.007)

·; Adjusted EBITDA increased by 49.4 per cent to €7.50 million (H1 2010: €5.02 million

·; International revenues increased by 588 per cent to €7.59 million (H1 2010: €1.1million) representing 38.7% of total revenues

·; S.a.a.S (mobile and e-business) revenues up by 304.3 per cent to €9.38 million (H1 2010: €2.32 million) which now represents 47.8 per cent of the total business

·; Successful completion of the £17.25 million share placing in February 2011 has underpinned the performance of CitronGO! and transformed the Group's balance sheet which now shows a net cash position of €1.96 million with cash and cash equivalents of €9.86 million at 30 June 2011.

Operational Highlights for the first half of 2011:

·; Expanded international mobile services generates revenue in a total of 15 countries with direct and indirect business development efforts targeting more than 78 countries

·; Secured direct contracts for CitronGO! and GO!Social with 14 MNOs and 12 VAS Providers having operations in a total of 37 countries. Total of 990,000 active users of CitronGO! and GO!Social at 30 June 2011, an increase of 97 per cent since the beginning of the year.

·; Introduction of GO!Enterprise Server at Mobile World Congress 2011 in Barcelona during February with full commercial release planned for Autumn 2011.

·; Initial franchising agreement for WiPLUS wifi offering with an Internet Service Provider operating in Serbia, Croatia and Montenegro.

·; New headquarters and carrier grade data centre developed to serve the increasing S.a.a.S needs of the Group.

·; Established new office in London to support commercial launch of GO!Enterprise Server in the UK and Western Europe.

On outlook, the Chairman, Brett Miller stated:

"The successful £17.25 million share placing in February 2011 has transformed the Group's balance sheet, enabling Globo to accelerate its growth.

Globo's international mobile, S.a.a.S and 'cloud' computing products and services, flexible business models and strong track record in delivering what our customers need, are increasing our success in winning new business and strengthening our position in international mobile markets, despite economic uncertainty.

In our traditional business, the forward order book for project delivery during 2011, currently worth approximately €9.46 million, is growing with revenues further strengthened by solid recurring revenue streams from Globo's Mobile, S.a.a.S and WiFi offering.

The second half is normally the stronger trading period within the year. Having recorded a very good performance during the first half and with our international business growing strongly, we are confident of achieving good results for the year as a whole."

CONTACTS

About Globo

GLOBO plc was admitted to AIM in December 2007. Founded in 1997, Globo has established itself as a leader in the international mobile and ICT market, providing a wide range of mobile, e-business and telecom software products and related services to private and government organisations and to the mobile sector. The Group has an international presence, currently with offices and subsidiaries in 8 countries, and further expansion of its international footprint is planned, in line with management's mobile communications strategy. For further information please go to www.globoplc.com.

CHAIRMAN & CHIEF EXECUTIVE OFFICER'S STATEMENT

Introduction

We are pleased to present Globo's financial results for the six months to 30 June 2011.

During the half year, Globo achieved an excellent performance in all aspects of the business, leveraging its strong position in the international mobile arena and its robust technology. As a result, revenue and profit for the period were significantly ahead of the comparable period in 2010.

We have accelerated our international expansion both through existing partnerships with Mobile Network Operators (MNOs) and Value Added Service (VAS) providers and by establishing new partnerships. As a result Globo is today generating revenues in more than 15 countries.

In addition to the success achieved with MNOs around the world, Globo's traditional e-business, broadband access and software business is continuing to win new contracts and maintain revenue growth.

In response to customer demand and market trends, we are continuously enriching our mobile offering with new products and functionalities. As a result, we have experienced strong growth in our subscriber and user base with a significant impact on recurring revenues and profit margins.

At Mobile World Congress 2011 in Barcelona in February, the Group introduced GO!Enterprise Server which has created intense interest in its target market which comprises enterprises of all sizes in the US, UK, Europe and Australia.

Also during February 2011, we raised £17.25 million, through a placing of new shares with UK institutional investors, to fund the international expansion of the Group. The placing was heavily over-subscribed and the monies raised have in part been used to fund working capital required to support the continuing growth of CitronGO! and GO!Social, accelerate investment in the new mobile product, GO!Enterprise Server, which targets the enterprise smartphone market, and reduce debt.

Results and Finance

Revenue for the period was €19.61 million, a 56.5 per cent increase on the same period in 2010 (H1, 2010: €12.53 million), reflecting strong growth in international revenue, mainly from mobile products and services with the traditional private sector business also performing well. International revenues were €7.59 million, representing 38.7 per cent of the Group total for the period, compared to € 1.1 million, or 8.8 per cent of the Group total, in the first half of 2010.

Despite the difficult economic conditions, operating margins held up well at 18.8 per cent, a 20.5 per cent increase compared to last year (H1, 2010: 15.6 per cent). Operating profit increased by 88.3 per cent to €3.69 million (H1, 2010: €1.96 million) with profit before tax reaching €3.18 million, an increase of 123.9 per cent (H1, 2010: €1.42 million). Profit after tax increased by 140 per cent to € 2.4 million (H1, 2010: €1 million).

Outstanding receivables from the public sector have been reduced by €0.7 million since the end of 2010 and we expect that the remaining €1.3 million will be paid by the end of the year.

Operating cashflow for the period, after an increase in working capital of €4.89 million, was €1.53 million (H1, 2010: €1.60 million) with net cash from operating activities after interest of €0.94 million (H1, 2010: €1.04 million).

Operations

·; Mobile Solutions

During the period, mobile solutions delivered a 684 per cent increase in revenues to €8.07 million (H1 2010: €1.03 million). Globo's subscriber base of 990,000 users at 30 June 2011 and 97 per cent higher than at the beginning of the year, continues to grow rapidly. This, combined with the rollout of new products and services, and the contribution to international revenues expected following the launch of GO!Enterprise Server, will result in a continuing strong financial performance during the second half of this year.

Globo is a leading global mobile technology service provider and one of the few able to support MNOs and VAS providers in enriching their customer offerings with the full range of voice and SMS services, as well as mobile internet, social networking and messaging. We enable MNOs to improve voice ARPU (Average Revenue Per User) by replacing unsuccessful on-deck portals with products and services that can satisfy smartphone and mobile internet demand.

Demand for Globo's unique mobile platforms, CitronGO! and GO!Social continues to be strong with MNOs and VAS providers taking advantage of our flexible S.a.a.S offering based on a "pay per user" revenue-sharing model with no investment required by the customer. As a result, customers are able to deliver mobile internet usage to their subscribers, including push email, contacts, calendars and folder synchronisation, as well as instant messaging and social networking connectors, to all major services including Facebook, LinkedIn, Twitter, Youtube, VKontakte and MySpace.

Today Globo has secured direct contracts for CitronGO! and GO!Social with 14 MNOs and 12 VAS Providers having operations in a total of 37 countries. At 30 June 2011, there were a total of 990,000 active users of CitronGO! and GO!Social, an increase of 97 per cent since the beginning of the year (1 January 2011: 502,000 thousand active users).

Business development activities continue with a significant number of MNOs and VAS providers in Latin America, South East Europe, the Middle East, Asia and Africa. In addition to strategic relationships with major MNOs, which take time to establish, the Group has developed off-deck solutions for VAS Providers targeting their customers through direct to consumer (D2C) CRM activities or special agreements and product placements in the off-deck portals and app stores of MNOs.

·; GO!Enterprise Server

The continuing international expansion of CitronGO! and GO!Social represents Globo's strategy for the international mobile market targeting consumers. At the same time, the Group has been laying the foundations for long term growth addressing the enterprise market with GO!Enterprise Server, a product utilising Globo's proprietary 'cloud' technology platform.

The full commercial launch of GO!Enterprise Server (www.goenterpriseserver.com), is planned for the Autumn of 2011 with the first contribution to revenue expected towards the end of the year. The early response to GO!Enterprise Server has been very encouraging with the Group receiving numerous requests, for trials and partnerships, from companies around the world .

Through GO!Enterprise Server, the Group will address the increasing demand for enterprise mobility on all smartphone platforms which is a key driver for the developed markets of Europe, North America and Australia. In addition, we will be able to extend our offering from the consumer market, currently addressed through the feature phone approach of CitronGO! and GO!Social, into the enterprise markets of developing economies such as India, Asia, Africa and Latin America.

GO!Enterprise Server represents a major part of the investment made during the period in developing innovative mobile products and services and is addressing a sophisticated and demanding market with experienced users. Key features of the software for GO!Enterprise Server include:

·; Security

High levels of security for business data exchange and storage are achieved using strong encryption algorithms following the latest technology standards. Additionally, GO!Enterprise Server utilises all enterprise security policies on a group and employee profile level.

·; Device Portability

GO!Enterprise Serverenables access via any mobile device including the most well known mobile operating systems including iPhone, Blackberry, Android, Java and iPad.

·; Business Application Integration and Mobile Porting

GO!Enterprise Serverprovides an open environment with standardised APIs to connect and mobilise any internal business application, such as CRM, ERP and intranet. Connectivity across mobile platform applications to the company's internal system is achieved using GO!Application Development Studio.

·; Messaging

GO!Enterprise Serverprovides full access to e-mail for Microsoft Exchange, IBM Lotus Domino and all global email providers, including Google, Yahoo and WindowsLive.

It enables instant messaging between employees, colleagues, partners or friends on their mobile devices using well known IM providers such as MSN, GTalk and Yahoo Messenger.

Efficient compression minimises bandwidth costs and the impact on battery longevity.

·; Productivity Tools

These keep employees connected with the office through calendars, contacts, notes and tasks being accessible.

·; Folders and Files Access

Users are able to access a company's intranet file system as well as online folders for storing and sharing files of any type and any size. Files can be attached to messages and read on the move.

·; Ready to use CRM and ERP application connectors

Globo has developed a number of CRM and ERP application connectors of major well known software providers (such as Microsoft Dynamics CRM and ERP) which are included in the initial offering of GO!Enterprise Server. This enables businesses to mobilise their existing back office systems quickly and to maximise ROI.

·; GO!Enterprise Studio

GO!Enterprise Studiocan help businesses to mobilise any of their back-end applications without having to redevelop each one of them, or port them on mobile devices or replace them with more suitable applications. The user-friendly graphic design environment enables a novice programmer to mobilise any application easily and at minimal development cost. These applications can then be dynamically deployed over the air (OTA) to a user's handset, greatly improving implementation, testing and deployment times.

In addition, GO!Enterprise Server's underlying technology, Globo's proprietary GO!3D technology will be used to develop a range of products and services focused on vertical and horizontal needs such as M-learning, M-Health, M-Government, M- Commerce and M-Payments.

We are very excited about the upside potential for GO!Enterprise Server which we believe provides the opportunity to achieve substantial profitable growth over the coming years.

·; Telecom - S.a.a.S Solutions

During the first half of 2011, international revenues were strengthened by the contribution from the Group's mobile VAS business, ReachFurther Communications, which increased revenues by 56 per cent over the same period last year.

ReachFurther Communications recently launched its Mobile Top Up service, a S.a.a.S offering for companies seeking to provide "Mobile E-Topup Services" to the increasing base of prepaid mobile phone users worldwide. Mobile Top Up has secured its first franchise agreement in Greece, with the service scheduled to go live by the end of the current year. We believe that commercialisation of Mobile Top Up through MNOs and other service providers in different countries provides the opportunity to generate significant recurring, high margin revenue streams.

During the period, Globo signed the first franchise agreement for its WiFi offering with an internet service provider operating in Serbia, Croatia and Montenegro and is planning further growth by increasing the number of hotspots that the Group installs and operates in areas where numbers of "ready to connect" devices , such as laptops, netbooks and smartphones, are growing.

In its traditional markets, the Group continues to make significant progress in expanding its private sector customer base. Demand for Globo's products and services continues to grow with revenues coming from software projects, and the SaaS offering from our Profitel division which is achieving success particularly in the SME market.

·; Software products and project services

In its traditional e-business software and services business, Globo continues to win new contracts, despite the difficult economic background. This is the result of focusing on strong private sector organisations and competitors suffering from a lack of financing.

Total revenues for the period increased slightly to €10.06 million (H1, 2010: €10.00 million) with the Group demonstrating its commitment to delivering value to customers in this area.

·; New Headquarters and Carrier grade Data Centre.

We recently leased, fitted out and moved to a new building which offers a bright and spacious environment, in more than 2,700 sq.m, to accommodate our growing team of staff and business operations. The building's interior has been custom-designed for the needs of a cutting edge technology company.

We have also built a carrier grade data centre to host part of our S.a.a.S and telecom services and equipped our offices with the latest IT and Telecom equipment. As a result of this investment we will reduce the costs of data centre outsourcing and provisioning whilst being able to increase services to customers.

Strategy

Globo's strategic goal is to become a global leader in next generation enterprise and consumer mobility.

The success achieved in the first 18 months of implementing our strategy is reflected in the fact that international mobile activities now account for 41 per cent of total revenues.

Much of our focus will continue to be on expanding our global footprint, by establishing both our own offices and partnerships in our target markets.

A major priority is to build a strong position in the enterprise market through GO!Enterprise Server, with our efforts being driven out of a new office established in London, whilst continuing to expand our presence in consumer markets through CitronGO! and GO!Social.

Board Changes

Brett Miller has decided to step down as the Company's non-executive Chairman to focus on his other business activities which increasingly demand more of his time, and is being replaced by Barry Ariko.Barry has enjoyed a distinguished and successful career in enterprise companies and the software industry.

The Board is grateful for Brett's contribution to the substantial development of Globo since the Company's flotation on AIM in December 2007. He leaves the Board of Globo having played a crucial part in the sound corporate governance and smooth operation of the Company which has provided one of the cornerstones of Globo's successful international development.

Outlook

The successful £17.25 million share placing in February 2011 has transformed the Group's balance sheet, enabling Globo to accelerate its growth.

Globo's international mobile, S.a.a.S and 'cloud' computing products and services, flexible business models and strong track record in delivering what our customers need, are increasing our success in winning new business and strengthening our position in international mobile markets, despite economic uncertainty.

In our traditional business, the forward order book for project delivery during 2011, currently worth approximately €9.46 million, is growing with revenues further strengthened by solid recurring revenue streams from Globo's Mobile, SaaS and WiFi offering.

The second half is normally the stronger trading period within the year. Having recorded a very good performance during the first half and with our international business growing strongly, we are confident of achieving good results for the year as a whole.

Brett Miller Costis Papadimitrakopoulos

Non-executive Chairman Chief Executive Officer

Financial Review

In the first half of 2011 the Group delivered a strong financial performance, with all main business areas contributing.

In the six months ended 30 June 2011 revenue reached €19.61 million, a 56.5% increase on the same period in 2010 (H1, 2010: €12.53 million). The increase in revenue is derived from high growth in the international revenue of the Group, mainly from the mobile products and services as well as the private sector segment of the Group.

Gross profit increased by 52.6% to €6.41 million (H1, 2010: €4.20 million) delivering a gross margin of 32.7% (H1, 2010: 33.5%).

Operating profit excluding depreciation and amortisation increased 47% to €7.35 million (H1, 2010: €5 million) delivering a margin of 37.5% (H1, 2010: 40%).

Depreciation and amortisation of non-current assets was €3.66 million (H1, 2010: €3.06 million), reflecting the significant investment in product development. Operating profit increased by 88.3% to €3.69 million (H1, 2010: €1.96 million) which, despite the increase of 19.6% in the depreciation and amortisation charge, delivered an operating margin of 18.8%, an increase of 20.5% on the same period of 2010 (H1, 2010: 15.6%).Profit before tax reached €3.18 million, an increase of 123.9% over the same period (H1, 2010: €1.42 million).

The taxation charge for the period was €0.8 million (H1, 2010: €0.4 million).

Basic earnings per share grew by 28.6% to €0.009 (H1, 2010: €0.007).

Globo plc's balance sheet, as at 30 June 2011, reflects a net asset position of €46.73 million. Total assets were €75.28 million (H1, 2010: €51.93 million). Total assets included €22.30 million in non-current assets, €43.12 million in inventories and work in progress, trade receivables, prepayments and other current assets, and €9.86 million in cash and cash equivalents. Total liabilities decreased by 11.5% to €28.56 million.

Trade receivables and prepayments increased by €3.35 million compared to 30 June 2010, reflecting the increased turnover for the period. Outstanding receivables from the public sector have been reduced by €0.7 million since the end of 2010 and we expect that the remaining €1.3 million will be paid by the end of 2011.

Operating cash flows for the period remained healthy. The net cash provided by operating activities reached €0.94 million (H1, 2010: €1.04 million). Net cash used in investing activities was €7.16 million, reflecting the significant investment in product development and infrastructure, mainly for the mobile products and services of the Group. In addition, cash from financing activities of the Group have been increased by €13.7 million due to the capital increase of €20.3 million in February 2011.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the 6 months ended 30 June 2011

CONSOLIDATED BALANCE SHEET

At 30 June 2011

CONSOLIDATED BALANCE SHEET

At 30 June 2011

CONSOLIDATED CASH FLOW STATEMENT

For the 6 months ended 30 June 2011

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2011

STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2011

NOTES TO THE INTERIM FINANCIAL STATEMENTS

For the 6 months ended 30 June 2011

1 Basis of preparation

The condensed consolidated interim financial information for the 6 months ended 30 June 2011 has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2010, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

The condensed consolidated interim financial information contained in this report does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. It has been prepared on a going concern basis in accordance with the recognition and measurement criteria of IFRSs as adopted by the European Union.

The 2011 condensed consolidated interim financial information of the Company has not been audited but has been reviewed by the Company's auditor, Littlejohn LLP, whose independent review report is included in this Interim Report.

Critical accounting estimates

The preparation of condensed consolidated interim financial information requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 3(z) of the Group's 2010 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

2 Accounting policies

Except as described below, the same accounting policies, presentation and methods of computation are followed in this condensed consolidated interim financial information as were applied in the preparation of the Group's annual financial statements for the year ended 31 December 2010. Those financial statements have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006.

Standards, amendments and interpretations to existing standards effective in 2011 but not relevant to the Group

The following standards and amendments to existing standards have been published and are mandatory for the Group's accounting periods beginning on or after 1 January 2011 or earlier periods, but not currently relevant to the Group.

A revised version of IAS 24 "Related Party Disclosures" simplified the disclosure requirements for government-related entities and clarified the definition of a related party. This revision was effective for periods beginning on or after 1 January 2011.

An amendment to IFRS 1 "First-time Adoption of International Financial Reporting Standards" relieved first-time adopters of IFRSs from providing the additional disclosures introduced in March 2009 by "Improving Disclosures about Financial Instruments" (Amendments to IFRS 7). This amendment was effective for periods beginning on or after 1 July 2010.

Amendments to IFRS 7 "Financial Instruments: Disclosures" were designed to help users of financial statements evaluate the risk exposures relating to transfers of financial assets and the effect of those risks on an entity's financial position. These amendments were effective for periods beginning on or after 1 January 2011 but are still subject to EU endorsement.

Amendments to IAS 32 "Financial Instruments: Presentation" addressed the accounting for rights issues that are denominated in a currency other than the functional currency of the issuer. These amendments were effective for periods beginning on or after 1 February 2010.

IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments" clarified the treatment required when an entity renegotiates the terms of a financial liability with its creditor, and the creditor agrees to accept the entity's shares or other equity instruments to settle the financial liability fully or partially. This interpretation was effective for periods beginning on or after 1 July 2010.

An amendment to IFRIC 14 "IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction", on prepayments of a minimum funding requirement, applies in the limited circumstances when an entity is subject to minimum funding requirements and makes an early payment of contributions to cover those requirements. The amendment permitted such an entity to treat the benefit of such an early payment as an asset. This amendment was effective for periods beginning on or after 1 January 2011.

New standards, amendments and interpretations issued but not effective for the financial year beginning 1 January 2011 and not early adopted

The Group's assessment of the impact of these new standards and interpretations is set out below.

IFRS 10 "Consolidated Financial Statements" builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements of the parent company. The standard provides additional guidance to assist in the determination of control where this is difficult to assess. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.

IFRS 11 "Joint Arrangements" provides for a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form (as is currently the case). The standard addresses inconsistencies in the reporting of joint arrangements by requiring a single method to account for interests in jointly controlled entities. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.

IFRS 12 "Disclosure of Interests in Other Entities" is a new and comprehensive standard on disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.

IFRS 13 "Fair Value Measurement" improves consistency and reduces complexity by providing, for the first time, a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. It does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use is already required or permitted by other standards. This standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.

IAS 27 "Separate Financial Statements" replaces the current version of IAS 27 "Consolidated and Separate Financial Statements" as a result of the issue of IFRS 10 (see above). This revised standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.

IAS 28 "Investments in Associates and Joint Ventures" replaces the current version of IAS 28 "Investments in Associates" as a result of the issue of IFRS 11 (see above). This revised standard is effective for periods beginning on or after 1 January 2013, subject to EU endorsement. The Directors are assessing the possible impact of this standard on the Group's Financial Statements.

Amendments to IAS 1 "Presentation of Financial Statements" require items that may be reclassified to the profit or loss section of the income statement to be grouped together within other comprehensive income (OCI). The amendments also reaffirm existing requirements that items in OCI and profit or loss should be presented as either a single statement or two consecutive statements. These amendments are effective for periods beginning on or after 1 July 2012, subject to EU endorsement. The Directors are assessing the possible impact of these amendments on the Group's Financial Statements.

Amendments to IAS 19 "Employment Benefits" eliminate the option to defer the recognition of gains and losses, known as the "corridor method"; streamline the presentation of changes in assets and liabilities arising from defined benefit plans, including requiring remeasurements to be presented in other comprehensive income; and enhance the disclosure requirements for defined benefit plans, providing better information about the characteristics of defined benefit plans and the risks that entities are exposed to through participation in those plans. These amendments are effective for periods beginning on or after 1 January 2013, subject to EU endorsement, and are not expected to have an impact on the Group's Financial Statements.

This condensed consolidated interim financial information has been approved for issuance by the Board of Directors on 16 September 2011.

3 Segment information

The operating segments are based on the management reports received by the Board of Directors who are the chief operating decision makers and which are used to make strategic decisions. The Directors consider the business from a product perspective. The main segments are:

Third party goods: The Group resells third party goods, to its customers, mainly comprising hardware to complement a software project.

Software products and services: The main activity of the Group is to sell its own software products and related services to its clients both in the private and public sector.

Telecom services (S.a.a.S): The Group combines telecom services with its own software products that are then sold on a "software as a service" basis.

Mobile products and services: The Group sells its own mobile software products and services to its clients (mobile network operators, value added service providers, handset manufacturers etc.)

The segment information for the 6 months ended 30 June 2011 is as follows:

The segment information for the 6 months ended 30 June 2010 is as follows:

A reconciliation of gross profit to profit before taxation is provided as follows:

Revenue from external customers

4 Taxation

Income tax expense is recognized based on the Director's best estimate of the weighted average annual income tax rate expected for the full financial year applied to the income of the interim period. The charge in the period arises from movements in deferred tax and provision for tax in accordance with Greek Law.

5 Earnings per Share

Basic earnings per share are calculated by dividing the profit after tax attributable to equity holders by the weighted average number of ordinary shares in issue during the period.

Diluted earnings per share assumes that options and warrants outstanding at 30 June 2011 were exercised at 1 July 2011, for options and warrants where the exercise price was less than the average price of the ordinary shares during the period. On this basis, the calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders divided by 258,700,940 (six months ended 30 June 2010:144,626,856; year ended 31 December 2010:153,468,784) ordinary shares.

6 Cash generated from Operations

7 Intangible assets

During the period the Group spent €6,740,447 (6 months ended 30 June 2010: €3,787,006) on licences and software development of existing products of the Group as well as new mobile products.

8 Related Party Transactions

a. Key management personnel

Directors and key management personnel received total compensation during the 6 months ended 30 June 2011 of €473,734 (6 months ended 30 June 2010: €428,622).

b. Profitel Communications S.A. ("Profitel")

In the first half of 2011, Globo Technologies S.A. realized sales to Profitel S.A. for the Wiplus service amounting to €70,408 (6 months ended 30 June 2010:€45,336) and received €3,302 (6 months ended 30 June 2010: €3,203) for office rent. In addition, Globo Technologies S.A. has bought telephony, internet bandwidth services, Wiplus network services, help desk - call centre services, data centre services as well as related support communication services from Profitel at a total value of €1,548,815 (6 months ended 30 June 2010: €728,393). The outstanding debtor balance at 30 June 2011 was €1,166,855 (31 December 2010: €Nil). The outstanding creditor balance at 30 June 2011 was €1,400,142 (31 December 2010:€82,372).

c. 3nSold S.A.

Mr Costis Papadimitrakopoulos and his wife hold 27.5% of 3nSold S.A. ("3nSold"). The outstanding debtor balance at 30 June 2011 was € 13,546 (31 December 2010: €10,991).

d. ReachFurther Communications Ltd ("ReachFurther"). In the first half of 2011 the Group received consulting services from Reach Further at a total value of €6,222 (6 months ended 30 June 2010: €2,553). There are no outstanding debtor or creditor balances at 30 June 2011.

e. Globo Technologies S.A.

On 30 June 2011 the balance due to Globo plc from Globo Technologies was €18,254,969 (31 December 2010: €4,970,730). Part of the funds raised by Globo plc during the period, net of expenses, totaling €19,279,365 were paid to Globo technologies S.A.in order to fund product development and working capital requirements. Globo technologies S.A. paid administrative and operating costs of €680,409 on behalf of Globo plc during the period.

9 Share capital and share premium

On 27 January 2011 20,170,160 ordinary shares of 1 pence each were issued fully paid at 15 pence per share.

On 17 February 2011 94,729,840 ordinary shares of 1 pence each were issued fully paid at 15 pence per share.

On 4 May 2011 449,988 ordinary shares of 1 pence each were issued and allotted pursuant to the exercise of Warrants, at an exercise price of 15 pence per share.

On 4 May 2011 197,500 ordinary shares of 1 pence each were issued and allotted pursuant to the exercise of Warrants, at an exercise price of 10 pence per share.

On 30 June 2011 197,500 ordinary shares of 1 pence each were issued and allotted pursuant to the exercise of Warrants, at an exercise price of 10 pence per share.