Trading update and proposed placing

Wednesday 22 August 2012

THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF IRELAND OR SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

Monitise plc

Trading update and proposed placing of new shares

2011/2012 Financials in line with 17 July Trading Update

Revenue guidance for 2012/2013 £70m ($110m) minimum

Improved EBITDA breakeven target brought forward to September 2013

Monitise plc (LSE: MONI) ("Monitise", the "Company" or the "Group"), the technology and services company delivering mobile banking, payments and commerce networks worldwide, announces a trading update ahead of the announcement on 4 September 2012 of its financial results for the year ended 30 June 2012.

Operational Update

·; As Monitise continues to enhance its reputation for delivering bank grade secure services for its customers, be it mobile banking, mobile payments or mobile commerce, the opportunities to enhance shareholder value continue to grow.

·; The Company has invested significantly in its Monitise Enterprise Platform and technology over the past few years and is also delighted to have completed four major customer launches during June and July. The Company has a strong pipeline of future deployments.

·; At the end of the 2011/2012 Financial Year, Monitise had £20m gross cash and £10m of debt from the acquisition of Clairmail. Monitise has repaid approximately half of the debt post year end.

·; The Company is pleased to bring forward EBITDA breakeven guidance by a full quarter to September 2013.

·; Customer feedback globally following the Clairmail acquisition has been very positive.

·; The Company has also been approached by a number of global technology companies interested in partnering and reselling Monitise's capabilities.

[1] Foreign exchange rate for Sterling/US Dollar used is $1.56

[1] EBITDA is defined as operating profit/loss before depreciation, amortisation, share-based payment charges and one-off exceptional gains/losses

2011/2012 Financials in line with 17 July Trading Statement

·; We stated in the July Trading Statement that from 2011/2012 we would account for the Group's interests in Joint Ventures in one line in the income statement (share of Associates and JVs) which is reported below EBITDA and Operating Profit. The unaudited results for the year for revenue and EBITDA are shown both on an equity and proportionate basis in note 1 below.

·; On an equity basis, revenue in the year grew by approximately 140% from £15m to £36m and the EBITDA loss reduced from £12m to £10m.

·; The order book as at 30 June 2012 was more than £110m of committed orders, plus a further £160m of additional revenue with a high degree of visibility from existing contracts over the next five years, totalling £270m. Increased demand from existing customers and pipeline of new customer wins provides further confidence of future growth in the order book.

·; Reiteration of revenue guidance for 2012/2013 of £70m ($110m) minimum.

Proposed Placing

·; Certain existing strategic investors have provided strong expressions of interest to subscribe for shares for a value of up to £24 million. The Company has the ability to issue up to 81 million shares pursuant to the authorities granted by shareholders to the Board on 25 June 2012.

·; The Company announces its intention to undertake a proposed placing of ordinary shares to raise gross proceeds of up to £24 million ("Proposed Placing") to take advantage of this demand.

·; Discussions will take place with other major shareholders regarding the opportunity of taking part in the Proposed Placing on a non pre-emptive basis. Depending on demand the strategic investors may be scaled back.

·; The Proposed Placing, once completed, will ensure that the Group maintains a strong balance sheet, and provides headroom for other investment opportunities.

·; Canaccord Genuity Limited ("Canaccord") is acting as NOMAD and Sole Broker with respect to the Proposed Placing.

·; The Company will announce the outcome of discussions with respect to the Proposed Placing on finalisation and signature of agreements.

Alastair Lukies, Group CEO, Monitise plc, said:

"The Mobile Money industry is gaining more attention, investment and profile than ever before. At Monitise we believe that our bank and payment industry centric approach is delivering sustainable shareholder value and creates an infrastructure that will be used for generations. We are excited by the opportunities ahead of us and focused on delivering profitability earlier than anticipated."

Duncan McIntyre, Chairman, Monitise plc, added:

"In June 2012 we completed our acquisition of Clairmail and then also launched four major customer releases which help to underpin our future growth and market leading position. The integration of Clairmail is progressing well and is further accelerating our strong growth in the US market.

We are in a unique position in this exciting industry and ensuring that we have a suitable capital base is vital if we are to deliver on the substantial potential of the business. We are delighted that our major partners are fully supportive of our strategy."

Note 1

This announcement is for information purposes only and does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities of the Company in any jurisdiction and should not be relied upon in connection with any decision to subscribe for or acquire any such securities. In particular, this announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities in the United States.

Any securities issued in connection with the Proposed Placing have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered, sold, taken up or renounced in the United States absent registration under the Securities Act or an applicable exemption from such registration. There will be no public offering of securities in the United States.

This announcement has been issued by, and is the sole responsibility of, the Company. No person has been authorised to give any information or to make any representations other than those contained in this announcement and, if given or made, such information or representations must not be relied on as having been authorised by the Company or Canaccord. Subject to the AIM Rules for Companies, the issue of this announcement shall not, in any circumstances, create any implication that there has been no change in the affairs of the Group since the date of this announcement or that the information contained in it is correct at any subsequent date.

Canaccord, which is authorised and regulated in the United Kingdom by the Financial Services Authority (the "FSA"), is acting as Nominated Adviser and broker to the Company for the purposes of the AIM Rules for Companies and the AIM Rules for Nominated Advisers in connection with the Proposed Placing and is not acting for, and will not be responsible to, any person other than the Company for providing the protections afforded to customers of Canaccord or for advising any other person on any transaction or arrangement referred to in this announcement.

Canaccord, which is authorised and regulated in the United Kingdom by the FSA, is acting exclusively as financial adviser to and broker to the Company and for no one else in connection with the Proposed Placing and is not advising any other person or treating any other person as its customer in relation to or in connection with the Proposed Placing and is not advising any other person or treating any other person as its customer in relation to the matters referred to in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to clients of Canaccord or for providing advice in relation to the Proposed Placing or any matter referred to in this announcement.

About Monitise

Monitise plc (LSE: MONI.L) is a technology and services company delivering mobile banking, payments and commerce solutions worldwide, with the proven expertise to enable financial institutions, network operators and merchants to make money more mobile globally. With live services in the UK, US, India and Africa, Monitise securely processes hundreds of millions of transactions worth billions of dollars each year via its Enterprise technology platform.

Monitise's strategic partner and client base includes financial institutions and payments companies such as Visa Inc. and Visa Europe, FIS, Royal Bank of Scotland, Fifth Third Bank, HSBC, Lloyds Banking Group, Co-operative Banking Group, Sallie Mae, PNC Bank, Frost National Bank, Standard Chartered, Travelex, Permata Bank and HDFC Bank among others. Other leading partners include Vocalink, Vodafone, Orange, O2, T-Mobile, 3 UK, Research In Motion, The Carphone Warehouse, First Eastern, Astra International, JETCO and PCCW mobile.

More information is available at www.monitise.com