Issue of Equity

10 May 2011

Artilium plc

('Artilium' or the 'Company')

Issue of Equity

Artilium is pleased to announce that it has issued a total of 1,565,842 ordinary shares of 5p each in the Company ("Ordinary Shares") to the holders of the unsecured convertible loan notes (the "Notes") in order to settle interest of c.£133,000 due on the first tranche of Notes.

The new Ordinary Shares have been issued at 8.5p, the conversion price specified in the loan note instrument. Application has been made for the new Ordinary Shares to be admitted to trading on AIM. The New Ordinary Shares rank pari passu with the Company's existing Ordinary Shares and dealings are expected to commence on 12 May 2011.

Following Admission, the Company's total issued share capital will comprise 92,012,806 Ordinary Shares with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

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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.