Q1 2014 Trading Update

For immediate release 12 May 2014 INTERNETQ PLC ('InternetQ', the 'Group' or the 'Company') Q1 2014 Trading Update Strong growth achieved underpinning InternetQ's target of 40% annual growth InternetQ plc (LSE-AIM: INTQ), a leading provider of mobile marketing anddigital entertainment solutions for mobile network operators and brands, ispleased to announce the following update for the period from 1 January to 31March 2014. InternetQ experienced continued strong growth across all business divisionsduring the period with revenue up by 68% YoY to €30.3 million and adjustedEBITDA up by 59% YoY to €5.2 million. EBITDA margins are higher than expectedin both segments. Consistent with the comments made at the time of the Full Year Results, thisstrong performance is underpinned by the company's market leading positions andgrowing demand for mobile marketing and entertainment across all regions. TheGroup has made a good start to the financial year ending 31 December 2014, inline with current market expectations for both revenue and profit. Panagiotis Dimitropoulos, Founder and Chief Executive Officer of InternetQcommented: "The Group is a clear leader in the field of mobile marketing and digitalentertainment and we are therefore ideally placed to capitalise on theconsiderable opportunities in our markets on the back of the acceleratingpenetration of smartphones. Consistent with this, it is important that wecontinue to invest in order to strengthen our business further and expand ourproduct offering across our target markets. InternetQ has made an excellent start to the financial year, in line withcurrent market expectations. The pipeline for performance-based advertisingcampaigns, especially in Latin America, remains strong and the benefits of lastyear's acquisitions are coming through." Market Update InternetQ operates in a fast growing and evolving global marketplace.Smartphone penetration is driving mobile internet take up and is expected toovertake fixed broadband by as early as 2017. InternetQ has a broad geographicand emerging market footprint, with operations spanning Asia, Europe, Africaand the Americas. Mobile use in emerging markets is tracking above broadbandand in a large number of those markets, mobile is the universal standard forinternet access and electronic payments. Operational Update InternetQ has completed the successful acquisition of Interacel Holdings LLC,now fully operationally integrated. The acquisition has already accelerated theGroup's growth with a strong performance across Latin America, which looks setto continue as we capitalise on the solid pipeline of campaign opportunities.Some of the key deals in the Latin American region include: * The extension of the campaign with Claro in Paraguay for the upcoming football World Cup, following the successful performance in Q1 2014; * The extension of the campaign with Tigo in Honduras, on the basis of Q1 campaign's performance, with a stronger TV presence and customer interactivity; * One more deal reached with the Orange Group for a new campaign in the Dominican Republic to be launched in Q2 2014; and * Cross operators' campaigns with strong TV support and presence in TV shows in Guatemala, Ecuador, Paraguay, Dominican Republic, Costa Rica, Chile and Peru. Business in Asia, Europe and Africa is also growing as expected. Akazoo continues to impress Mobile Operators, ISPs and handset manufacturesboth in territories where Akazoo is currently available as well as in newglobal regions. A significant pipeline of partnerships combined withmulti-territory expansion and label renegotiation efforts has positioned Akazooas a strong player in the music streaming business focused not only onexpansion but also profitability. * In Poland, InternetQ outpaced all major competing music streaming services in a bid to secure a bundling deal with Orange Poland. Orange's decision comes after discontinuing its relationship with another major streaming music provider. Akazoo will be offered through multiple Orange tariff plans to the mobile operator's 15+ million subscribers. In late May, InternetQ will announce details of the deal and new Orange Akazoo joint offerings prior to the pending service launch in June. * Akazoo's pilot launch in Thailand exhibiting significant growth of 35% month on month. * Malaysia market performing at growth rates above expectations and market standards exhibiting a 20% month on month growth. * Distribution agreement with OEM handset manufacturer in Indonesia and Malysia with Ninetology and OEM brand partner of Gmobi. * New distribution partnership with Indonesian mobile operator and mobile device manufacturer, further details to be announced in early June. * Significant label renegotiations to facilitate quicker multi-territory expansion and lower content costs. Strategy & Outlook We remain a high growth company with a diversified, International geographicfootprint, which enables the Group to capitalise on opportunities in ourmarkets and through synergies from its acquired companies. InternetQ will useits existing resources, having developed a three pronged approach to drive uprevenues from the mobile market, and will look to invest in further growth bothorganically and through further successful acquisitions which will reinforceour leading position in the rapidly evolving mobile market place. The year hasstarted very well with trading in line with our expectations. ENDS For further details: InternetQ Tel: +44 (0) 20 3519 5250 / +30 (211) 101 1101Panagiotis Dimitropoulos, Founder and CEO Tel: +30 (697) 811 7520Veronica Nocetti, Chief Financial Officer Tel: +30 (694) 420 5275 FTI Consulting LLPCharles Palmer / Sophie McMillan / Tracey Bowditch Tel: +44 (0)20 3727 1000 RBC Capital MarketsStephen Foss / Pierre Schreuder Tel: +44 (0)20 7653 4000 Canaccord GenuitySimon Bridges / Emma Gabriel Tel: +44 (0)20 7523 8000 About InternetQ plc: InternetQ is a leading digital content and mobile marketing services companywith operations spanning Asia, Europe, Africa and the Americas. It offersproprietary technology platforms to help mobile network operators, brands, andmedia companies to conduct targeted, interactive and measurable marketinginitiatives on mobile devices. Its mobile value added services include Akazoo,which allows consumers to purchase digital music content, MobiDialog, itsplatform for mobile operators to manage marketing campaigns with predictiveanalytics, and Minimob, a platform providing developers with the most advancedtools to cross-promote and monetize their apps. All underpinning the rapidglobal growth in smart devices and the thriving app economy. InternetQ is a publicly traded company listed on the AIM market of the LondonStock Exchange, under the symbol INTQ.

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