Product Launch

MySQUAR Limited ("MySQUAR" or the "Company")

MySQUAR reports results of the first game and further updates on the Gaming Business

MySQUAR, the Myanmar-language social media and entertainment platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, is pleased to announce the successful launch of its first game through MyCHAT, its free to use, mobile messaging and social networking application.

Further to commentary in the Company's Interim Report announced on 30 March 2016, the game Destroyer King successfully completed its Alpha Test in April 2016 followed by its official launch on 5 May 2016, with MyCHAT acting as a key channel to market the game to new users. The subsequent Key Performance Indicator Report established the following:

· Destroyer King had close to 65,000 users as of 29 May 2016 and is expected to acquire up to a total of 100,000 users in the following 30 days.

· Lifetime ARPPU (total revenue / total unique paying users) as of 29 May 2016 was USD8.2. Further statistics will be given when the game has been running for a longer period as currently paying users represent a very small proportion of users but this is expected to pick up over time

· Position in Google Play in the week of 26 May 2016 reached Top 3 of All Free Apps in Myanmar and Top 1 Free Game in Myanmar (note: the game is free to play, but users have to pay for in-game purchases)

One more 'Casual Game' (genre: Arcade Fish Hunting) is to be released by the end of June 2016 and a 'Hard-core Game' (genre: TURN BASED COLLECTIBLE CARD) to be released by the end of July. The Company intends to continue to release new games at a rate of one new game every two months. With the growth of the first game coupled with new games to be released, the Company expects significant increases in both user acquisition and revenue in the coming months.

The Company's strategy is to provide games localised for and fitted to Myanmar users (local language, local payment - non credit card, game-genre-meets-local-culture). It sources games from different countries, licenses and imports them to Myanmar. It is anticipated that, as is already the case with Destroyer King, the game business will benefit very significantly from the growing user-base of MyCHAT.

As of today, the Company has built a scalable complete value chain for its Gaming Business including game sourcing, localisation, game operation and moderation, marketing and payment, which is ready for further releases of games.

Regarding payment solutions for games, the Company currently works with Mectel (a CDMA technology-based mobile operator in Myanmar) and Reddot (a local company providing Electronic Mobile Top-Up). It is also in discussion with other telecommunications companies for further payment options and when the payment features of MyPAY go live, planned in Q3 of the calendar year 2016, the gaming business will have an additional and very important new payment option to enhance game revenue. 

As stated in the Interim Report, the Company is one of the first movers in the gaming business in Myanmar. In the Board's view, Myanmar is currently experiencing a situation very similar to that of Vietnam a decade ago, when social gaming became hugely popular amongst Vietnamese youths. In positioning MySQUAR as one of the first game publishers in Myanmar the Company is seeking to tap into this potentially lucrative market (in Vietnam, for instance, yearly Average Revenue Per User of games is approximately USD9.76 and the market size is estimated at approximately USD400 million per annum, according to Statista's report on the Vietnamese mobile gaming market overview in 2015).

The Company plans to largely focus on mobile games that leverage the user base of MyCHAT, but will also publish other types of games including web games and PC games on a selected basis. The Company intends to build a game portfolio to include casual games, mid-core games and hard-core games whose monetisation will be based on both the "freemium"(*) and advertising models which have proved successful in both Western and Asian markets.

MySQUAR's CEO Eric Schaer said: "We regard this latest development as fundamental to MySQUAR's success. The fact that the majority of Myanmar's population is so young and demonstrably keen to engage with the full potential of the Internet makes mobile gaming an irresistible option for us. The synergies between paid-for gaming and MyPay's services add compelling rationale to our monetisation programme. We expect the mobile gaming business to make a significant contribution to the Company's revenues as the Company goes forward."

(* basic services are provided free of charge while more advanced features must be paid for)

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