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December 20, 2006

iPoint-media buys all new video following slow 3G demand

The slower than expected take-up of 3G and video-related services in the telecoms sector has led the management of Newbury, UK-based All New Video Plc to conclude that a takeover offer from iPoint-media Plc is its best option for 'the future success of the company.'

By CBR Staff Writer

Tel Aviv, Israel-based iPoint-media has developed a suite of proprietary software products to enable video calling over IP using 3G networks. Likewise, ANV offers a range of video services, via hosting agreements, across both fixed-line and mobile telephony platforms.

Unfortunately for ANV, which was formed in 2002, it had hoped to exploit what its then directors believed was a high-growth market in video-calling, video conferencing, and other video-related services on 3G mobile phones. The slow take-up of 3G is evidenced in ANV’s latest financial figures. For the 16 months ended May 31, 2006, the company made a loss before tax of 3.7m pounds ($7.4m) on revenue of only 537,139 pounds ($1.05m).

IPoint admits that both companies operate within the same segment of the 3G services market, and have been working together on a number of projects for mutual clients. It believes that a combined entity will accelerate the growth rate of the combined businesses and improve their respective operating mass.

Both the iPoint Directors and the ANV Directors believe that there is a synergy between iPoint’s and AVN’s offering, and that the enlarged group will provide a better value proposition to customers than a separate offering by each company, iPoint said in a statement to the London Stock Exchange.

Under the terms of the deal, the offer comprises 8 iPoint shares for every 63 ANV shares. On this basis, the offer values each ANV share at approximately 9 pence ($0.17), giving the deal a value of 800,000 pounds ($1.6m).

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