Trading Statement

30 June 2010



Artilium plc

("Artilium" or the "Company") 

Pre-close trading update

Artilium (AIM:ARTA), the developer and seller of advanced software to telecoms companies and service providers, announces its pre-close trading update ahead of the announcement of its results for the year ended 30 June 2010 which is expected mid October 2010.

The Company continues to have a solid financial base and trading, for the 12 month period to 30 June 2010, was in line with management expectations.

Business Overview

Artilium, whose clients include BT, Vodafone Spain, Ziggo (NL), Belgacom Mobile (BE) Telenet and KPN provides services through its ARTA technology platform which offers three service offerings which meet a number of current and future needs within the Telecoms industry:

·; A Mobile Virtual Network Enabler ("MVNE"): provides Telecom operators and Mobile Virtual Network Operators ("MVNO") with a low cost solution for creating a commercial communications network for communities and companies. This concept is currently being used by KPN Group Belgium and Proximus in Belgium, offering interest groups the capability to have their own mobile networks. Artilium intend to set up similar services based on the ARTA platform in other countries.

·; Location Based Services ("LBS"): a low cost, low energy use mobile phone based alternative to GPS for movement tracking and tracing for customers ranging from haulage firms through to families wishing to locate their children.

·; A real time intelligent routing solution: provides the most cost effective and efficient use of the network to Mobile Network Operator's and MVNO's. This is particularly effective in promoting Fixed Mobile Convergence on a network.

Artilium's ARTA platform essentially enables telecoms companies to market to consumers in a highly targeted manner, creating packages which are tailor made to the precise requirements of small groups of subscribers such as a football team or a municipality.

Trading and Performance

In 2010, Artilium retained all of its existing clients and also signed new contracts for a total value of circa Euro 1 million with Lebara for low cost rerouting of calls and with Interfon for their MVNE platform with Mobistar in Belgium. There are several contracts for b2b location and presence services currently in negotiation and on 29 June Artilium signed a license agreement with Random Infotech to deliver tracking and tracing services to the Indian market. A new contract was also signed with Narrowminds to deliver our presence capabilities to enable mobile coupons and locations based feedback services. Having demonstrated the ARTA platform's MVNE capabilities in Belgium, we intend to launch our own MVNE in the Netherlands in the second half of 2010. We have successfully concluded the testing of our proprietary LBS technology on the Dutch KPN network and hope to start pilots in the coming months with internal LBS services, rolling out to external customers soon after.

During the course of the year, in order to support the continued development and marketing of our cutting edge software, we have considerably strengthened the management team at Artilium including the appointment of two new Non Executive Directors; Adrie Reinders and Thomas Trainers who both bring a wealth of plc experience from the technology and telecoms sectors. Fred Mulder has become the Executive Chairman and Maarten Bisseling was confirmed in the role of Chief Executive Officer.

We have also streamlined the structure of Artilium considerably with improved service management, software development planning and the quoting process. Most importantly, in 2010 Artilium introduced a new fee structure, charging customers on an operational expenses basis as opposed to upfront capital expenditure costs, thereby better aligning Artilium interests with that of its clients.

Since the majority of our revenues are received in Euros, henceforth the Company has decided to report its results in Euros. Artilium's share price will continue to be listed in pounds sterling.

Commenting on the announcement, CEO Maarten Bisseling said:

"It has been a busy year for Artilium as we have worked on building the necessary infrastructure to support the marketing of our cutting edge ARTA technology. We believe that the strength of our product offering can be seen both from the retention of our existing customers as well as the recent signing of new contracts. Our focus will now be on providing proof of concept of our own Mobile Voice Network Enabler within The Netherlands in order to be able to roll this service out into other markets to provide tailored communications solutions at low cost to communities for whom this has previously been too expensive."

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