Podifi contract wins and trading update

13 February 2013

2ergo Group plc

Podifi contract wins and trading update

2ergo Group plc (AIM: RGO, "2ergo" or "the Group"), the owner and international provider of innovative, proprietary contactless mobile technology solutions, announces that it has signed agreements with Jersey based telecom network JT Group Ltd ('JT') and the University of Salford's Student's Union to use its podifiTM contactless mobile loyalty and couponing system.

The Group's agreement with JT is to launch mobile contactless wallet services in Jersey. Based upon 2ergo's podifiTM technology platform, this service will enable customers of the JT network to redeem special discounts and promotional offers from participating retailers using their iPhone or Android smartphones.

The podifiTM platform helps retailers to generate footfall and build customer loyalty by enabling them to rapidly create, launch and manage mobile voucher based offers, deals or loyalty programmes. The platform enables fast, accurate and contactless transactions, as well as the ability to measure the performance of a specific promotion or campaign accurately and in real time.

To use the service, consumers simply download the 2ergo developed digital wallet from the iPhone App store or Google Play Store. They can then search through available offers and save the relevant vouchers, enabling their phone to act as a digital mobile wallet. These offers are then redeemed in-store simply by tapping their phone over a specially installed 'podifiTM pod', connected to the retailer's till.

2ergo has also signed its first major university deal for podifiTM with the University of Salford's Student's Union. The student mobile wallet app and contactless redemption pods will be rolled out later this month, enabling the union to target and track exactly who uses its mobile coupons.

Currently being trialled by O2 in Dublin as part of the Group's first mobile network deal, the podifiTM platform allows both on and off campus shops, restaurants and bars to send deals and coupons direct to the university's 20,000 students via a smartphone digital wallet which is updated daily. Students can then redeem offers or build loyalty points by tapping their smartphone over a pod at till points in five on-campus stores and at over fifty local retailers.

Other new clients using 2ergo's podifiTM technology include Fresh Convenience stores, Milano Restaurants and No Saints. The Group continues to provide solutions to Orange, PizzaExpress, Carphone Warehouse, Ladbrokes, Phones4U and Aviva.

The Group's sales pipeline is growing strongly due to the significant increase in demand for its podifiTM technology. Whilst performance is encouraging, agreements with some larger customers are taking longer than expected to finalise although are still expected to contribute in this financial year and beyond. The Board anticipates that the Group is likely to return to profitability in the year ending August 2014. The Group's current cash balance is c.£800,000 with its banking facilities unutilised.

Neale Graham, CEO of 2ergo, commented,

"Our podifiTM offering is increasingly being recognised by large industry players as an important solution in a key growth area for mobile technology.

"We believe that podifiTM has great potential in mobile couponing, loyalty and payments. The upcoming launches with JT and the University of Salford's Student's Union will showcase the benefits our mobile contactless solutions can bring to networks and retailers, as well as consumers."

"While we have experienced delays in signing up some new customers, the long term prospects remain exciting and we expect to return to profitability in 2014."

Separately today, 2ergo has also announced the appointment of Peter Kenyon as a non-executive director.

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About 2ergo Group plc

2ergo Group plc, the owner and international provider of innovative, proprietary contactless mobile technology podifi™, delivers coupons and vouchers, loyalty, proximity and payment solutions to organisations of all sizes in order to assist them to develop and execute their mobile strategy.

Headquartered in the UK, 2ergo has been a pioneer of enabling innovative mobile business solutions since 1999, supplying clients such as Aviva, Ladbrokes, PizzaExpress, Rightmove, O2, Orange, Talk Mobile, Transport for London, Phones4U, Procter & Gamble and Visit England, who have all benefited from 2ergo's end-to-end mobile solutions to increase sales, mobilise business processes, reduce costs and enhance customer relationships.

For more information visit www.2ergo.com