Update on new Business Opportunities

CDialogues plc

("CDialogues", the "Company" or the "Group")

Update on new Business Opportunities

CDialogues plc (AIM: CDOG), the provider of mobile marketing solutions to Mobile Network Operators (MNOs), provides an update on its new business opportunities.

As has been highlighted in previous announcements by CDialogues, the Company has been seeking to increase the number of its customer contracts through a variety of new business initiatives. This has been an area of particular focus given that the Company's four existing contracts are contributing declining revenues over time.

It has become clear to the Board that the market conditions for winning new contracts have and continue to change. In particular, the profit margin that can be achieved by CDialogues on new business opportunities is currently at a level which makes little commercial or financial sense to pursue. As a result, the Company is unlikely to engage in any new contracts until market conditions change.

The Company remains focussed on maximising the revenues from its four existing contracts though, as highlighted above, the revenues from these contracts is in decline. These contracts, which are short term in nature being on a rolling three-month basis, have been in place since 2013 and 2014 and have been renewed at the end of each term, though this cannot be guaranteed. The Board seeks to ensure that the Group's relationships with its customers and level of service minimises the risk of contracts not being renewed.

The Company remains in a strong cash position with approximately €3.5m of cash and no debt as at 30 April 2016.

About CDialogues

CDialogues provides mobile marketing solutions enabling MNOs to retain and acquire market share, increase average revenue per user (ARPU) and reducing subscriber churn.

The Company's products and services deliver fully managed solutions, utilizing advanced Data analytics techniques combined with Linguistic engineering marketing, to build awareness and multiply sales and opt-ins of promotional offerings and other mobile content being offered by the MNOs.

The solutions designed by the Company, are tailored and served with the appropriate Linguistic format, to each individual mobile network subscriber typology and geography it operates in, using its proprietary software and scalable infrastructure.

The majority of CDialogues' revenues are derived from a recurring subscription-based revenue model, which has been pioneered by the Company. As a result, the Company benefits from incremental cash flow growth from each new campaign customer and mobile network subscriber.