Mobile Marketing Company Breaks New Ground

15th April , 2004

Europe : Europe's leading mobile marketing firm 12snap has - for the first time - broken even across its offices in UK, Germany and Italy for financial year 2003. The tech innovations-driven marketing services agency also achieved its 3-year goal to exceed EUR 7 million in turnover in their core mobile marketing business, increasing 40% against the previous year.

Back at the end of 2000, the company changed its model from consumer auctioning by mobile to "mobile marketing" - interactive consumer marketing using the mobile channel and mobile phone technology - a move supported by its investors and shareholders, notably including Nokia Ventures, Vodafone, Apax Partners and Argo Global.

Since then - and with the addition of Bernd M. Michael (Chairman & CEO Europe of global advertising group Grey Worldwide) to its Board - 12snap has achieved outstanding campaign results, both in terms of sales increase and image gain, for international blue chip clients such as McDonald's, Coca-Cola, Wella, adidas and L'Oréal.

"2003 was very successful not only in terms of the quality of our creative work, but also financially for the entire group," says Dr. Michael Birkel, CEO of 12snap AG. "After being awarded a Silver Lion at Cannes, one of the most sought-after marketing prizes, and
receiving commendations from leading industry magazines 'Campaign' and 'Marketing' in the UK, we are now achieving the anticipated financial breakthrough on the operating side, leaving us room to focus more on expansion."

"This is a great indicator for our sector and our network in Europe. As the first mobile marketing specialists, we're showing at 12snap that this business can be profitable," adds Bernd Muehlfriedel, Group Chief Financial Officer. "And as a service company straddling the telecommunications and marketing services industries, we're ideally positioned to take advantage of the economic rebound underway in both these sectors," comments Martin Copus, Managing Director of 12snap's UK operations.

Munich-based 12snap is looking to go far in 2004: "Now that we've
reached break-even, we can devote ourselves even more to innovation," says Cyriac Roeding, head of group marketing and sales. Expansion is likely to come from increasingly strong ties to the major mobile network operators and media companies across Europe - for example, currently underway is a co-operation with MTV. 12snap has recently developed a suite of MMS (multimedia) applications as part of a research project supported by the German Federal Ministry of Economics, together with Lucent Technologies, so providing the company with a significant edge in mobile technology and mobile marketing concepts over other providers, according to Mr. Roeding.

The management team, having weathered the storm of the slump in both the marketing services and mobile-phone industries in recent years, is proud to have reached an important milestone with these 2003 results. 12snap now looks forward to significant expansion as the mobile marketing industry leader in Europe.

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