Placing and Loan Note Conversion

Artilium plc

('Artilium' or the 'Company')

Artilium raises £1.26m in Placing and converts all outstanding loan notes with a value of

Euro 3,295,000 into ordinary shares at placing price

Highlights:

·; Raised £1.26m at 8.5p via Placing of 15,206,739 ordinary shares, with Herald Investments, existing shareholders, management and Directors

·; Euro 3,295,000 loan notes converted to equity, Company now debt free

Maarten Bisseling, CEO Artilium commented: "We are very pleased to have completed this Placing and to have secured Herald Investments as a significant shareholder. I am also pleased that the holders of the Notes have all decided to become equity holders in the Company which demonstrates their faith in the future of the business. This follows the agreement last month with our largest client, KPN Group Belgium, to extend their contract and switch to a subscriber based fee model. We look forward to the future now with no debt, the financial base to meet our objectives and a secure client base from which to build."

Artilium is pleased to announce that it has completed a placing of 15,206,739 new ordinary shares of 5p each (the "Placing Shares") at a price of 8.5p per Placing Share (the "Placing Price"), raising approximately £1.26m for the Company before expenses associated with the Placing. 7,058,824 Placing Shares have been subscribed for by Herald Investments, a new shareholder in the Company, resulting in an interest of 4.87% in the Company's enlarged share capital. A further 6,153,844 Placing Shares were taken up by existing shareholders, with Directors and employees taking a total of 1,647,739 Placing Shares. A further 364,292 new ordinary shares have been issued at the Placing Price as commission in connection with the Placing in lieu of cash fees.

The proceeds from the issue of shares will be used (i) to further grow the company internationally, (ii) to invest in marketing and sales and international distribution channels, and (iii) for working capital purposes.

The Company has also agreed with the holders of its Euro 3,295,000 10% coupon secured loan notes (the "Notes") that all of the Notes be immediately converted into new ordinary shares at a price of 8.5p per share and all interest outstanding on the Notes also be satisfied by the issue of shares at the same price. A total of 37,596,725 new ordinary shares have accordingly been issued in connection with the conversion of the notes and accrued interest payments, leaving the Company with no outstanding debt.

Application has been made to the London Stock Exchange for a total of 52,803,464 new ordinary shares to be admitted to trading on AIM. Dealings are expected to commence in the new ordinary shares on 23 June 2011 ("Admission").

As a result of the Placing the following Directors have the following interests in the share capital of the Company:

*Mr Trainer has today formally waived the options he held over a total of 904,470 ordinary shares of 5p each at exercise prices between 9p and 30p per share.

**Mr Bisseling is not a Director of the Company but is a director all of the Company's subsidiaries.

In accordance with the FSA's Disclosure and Transparency Rules, the Company notifies the market that following the Placing and the conversion of the Notes:

·; The total number of ordinary shares of 5p each in the capital of the Company in issue following Admission will be 144,816,270 with each share carrying the right to one vote;

·; the Company holds no shares in treasury; and

·; therefore, the total number of voting rights in the Company will be 144,816,270.

The above 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 to their interest in Artilium plc under the FSA's Disclosure and Transparency Rules.

For further information contact:

Artilium PLC: +32 (0)50230300Adrie ReindersMaarten Bisseling

Arbuthnot Securities: +44 20 7012 2000Antonio BossiEd Groome

Cardew Group +44 20 7930 0777

Tim Robertson

Jamie Milton

Alexandra Stoneham

About Artilium

Founded in 1995, Artilium develops and sells software solutions to telecoms companies and service providers under its ARTA family of products designed to capitalize on the opportunities presented by today's fragmented mobile phone markets. 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.