Issue of convertible loan notes raises Euro 0.8m

Artilium plc

("Artilium" or the "Company")

Issue of Convertible Loan Notes raises Euro 0.8m

On 21 October 2010, Artilium announced in its preliminary results statement for the year ended 30 June 2010, the issue of convertible loan notes (the "Notes") to raise up to €0.8 million (the "Fundraising"). The Company is now pleased to announce that it has successfully raised €0.8 million as planned.

The net proceeds of the Fundraising have provided immediate cash resources to enable the Company to settle its long-running dispute with QiComm Limited, as referred to in the preliminary results announcement, without materially impacting the Company's operational cash-flow. The balance of the net proceeds will be used for general working capital purposes.

The Notes are secured, carry a coupon of 10 per cent. and are convertible at any time between the date of issue and up to and including 30 June 2012 into Artilium ordinary shares at a price of 8.25 pence per share. This price represents a discount of approximately 10 per cent. to the 5 day average mid-market price of the Company's ordinary shares prior to the formal initiation of the fundraising on 18 October 2010. The existing unsecured loan notes have been rebased on the same terms as the Notes and all of the Notes fall due for repayment on 30 June 2012.

Whilst the Company currently has sufficient existing authorities to issue shares in connection with the conversion rights attaching to the Notes, it will seek a specific authority for the issue of such shares at its next general meeting.

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Artilium - Notes to Editors

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) Telenetand KPN.

ARTA enables telecoms companies to market to consumers in a highly targeted manner, creating packages which are tailor made to the precise requirements of small groups of subscribers such as a municipality or interest group.

The ability to offer a commercially viable solution for customers to sell their services to small groups (e.g. supporters of a football team), is possible using other technologies but substantially more expensive.

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 less than 1.000

- A low cost, low energy 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 cheapest solution to Mobile Network Operator's and Mobile Virtual Network Operators

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