LBS contract and LOI for acqn of Smart Concepts

16 November 2012

Artilium plc

("Artilium" or the "Company")

Location Based Services contract and Letter Of Intent signed for the acquisition of

Smart Concepts

Artilium plc (AIM: ARTA), the AIM quoted provider of innovative telecommunication software and solutions, has signed a contract for the delivery of its Location Based Services to a major Western-European telecoms operator. Artilium has worked on this application for several years and believes it has unique features. Management is very pleased with completing this landmark deal and expects it to open the door to a number of new customers.

The Company has also signed a non-binding letter of intent for the acquisition of Smart Concepts, a loyalty and (mobile) payments provider (www.smartconcepts.nl). Smart Concepts operates a VISA certified payments platform which makes it a very interesting player in the payments market. The due diligence process is being finalized and the companies expect to finish the process in the coming month. The Smart Concepts loyalty and (mobile) payments software is developed in an end-to-end Microsoft architecture and as such fits very well with the Artilium software architecture. Together this creates the potential of a seamlessly integrated telecommunication, loyalty and payments platform. Management believes that the capabilities of Smart Concepts combined with the Artilium functionalities, like Location Based Services, will lead to new revenue opportunities and introduce Artilium into new markets.

This acquisition is expected to be earnings enhancing for Artilium.

Further announcements will be made in due course.

Enquiries:

About Smart Concepts

Smart Concepts is one of the leading providers of transaction processing, billing, loyalty and information systems, for both Business-to-Business and consumer markets, with a focus on loyalty and payments. Smart Concepts's mission is to add value to card activities of customers using state-of-the-art technologies. Together with their expertise on all aspects of the customer card systems should provide customers additional benefit. Their core competence lies with card issuance, transaction processing and loyalty card management.

With over ten years' experience in card management, they have a proven track record in developing, delivering, implementing, migrating and operational management of card schemes.

Customers who use the Smart Concepts systems and services are Texaco, Kuwait Petroleum, DAF (Paccar Parts), XXImo, NGF (Dutch Golf Federation), Dong Energy, Huishoudbeurs and many others.

About Artilium

Artilium is publicly quoted on the AIM market of the London Stock Exchange and has offices in Belgium and the United Kingdom. Founded in 1995, Artilium helps fixed and mobile telecom operators to quickly and affordably deliver tailor-made products to many niche markets through its scalable software-based service platform, ARTA. Being exclusively grounded on Microsoft technology, ARTA provides a platform that enables the integration of telecom and IT infrastructures while opening up to third-party developers to deliver a potentially unlimited range of consumer and enterprise applications. Artilium currently has clients in 11 countries that service millions of end users.