iTouch plc

iTouch plcPreliminary Results & Acquisition of Movilisto

Full year ended 31 December 2002

25 March 2003

iTouch plc

Wayne Pitout – Chief Executive Officer

• 2002 operational highlights

John Miller – Chief Financial Officer

• Financial highlights

• Revenue analysis

• Exceptional items

Wayne Pitout – Chief Executive Officer

• Strategy overview

• Movilisto transaction

Appendices

I ndex

2

iTouch plc

3

Wayne PitoutChief Executive Officer

iTouch plc

• Revenues increased 124% to £33.6m (2001: £15.0m)

• Full year EBI TDA loss* improved by 13% to £8.8m (2001: £10.1m)

• Acquisitions of Telescope and m4 Group in UK (H2 2002)

• I ncreased routes to market for data services

• Net cash position at year end £24.5m

• Proposed acquisition of Movilisto for maximum consideration of ¼��P

Highlights

* Before exceptional items4

iTouch plc

• Successful running of TV viewer empowerment shows in UK and USA including “I ’m a Celebrity… get me out of here!” and “American I dol 2”

• Partnership with Carphone Warehouse signed in the UK for delivery of mobile value added services

• Relationships with handset manufacturers to deliver premium content including Siemens, Samsung & Motorola

• Voice brands to mobile services

• Migration to single global platform resulting in cost efficiencies throughout the Group

• Exclusive licensing agreements signed for premium movie and music content including Spiderman, EMI & Zomba Records

2002 operational highlights

5

iTouch plc

6

John MillerChief Financial Officer

iTouch plc

% ChangeFull year 2002Full Year 2001

3%(£16.2m)(£16.8m)Operating Loss (1)

13%(£8.8m)(£10.1m)EBITDA Loss (1)

£24.5m

£33.6m

£36.1m

£15.0m

Net Cash at 31 December

124%Revenue

Financial highlights – 2002 v 2001

(1) Before exceptional items

7

iTouch plc

Full year Profit and Loss

1.31.9Interest

(0.1)-Tax

(46.6)(16.1)LAT

16.2p

2.7p

(46.5)

0.1

(46.5)

(47.8)

(30.0)

(1.4)

(0.2)

(0.5)

(5.0)

(1.9)

(8.8)

(18.1)

(3.0)

12.3

(21.3)

33.6

FY 2002 £m

(18.0)EBIT

5.6p

3.0p

(15.9)

0.2

(16.1)

-

(0.8)

(0.4)

(0.5)

(5.3)

(0.7)

(10.1)

(15.4)

(2.9)

8.1

(6.9)

15.0

FY 2001 £m

Gross profit

General admin costs

LPS

- basic

- adjusted

Retained loss

Minority interest

LBT

Exceptional I tems

- Impairment of goodwill

- Other

Associates/JV

Share incentive scheme

Depreciation

Goodwill amortisation

EBITDA (1)

Selling costs

COGS

Actual revenue

(1) Before exceptional items

Excluding Exceptional items

Includes £0.2m forex loss in Q4

Three quarters of improvement

Based on 287,995,550 shares

Restructuring charge £0.3m

Israel write-down £0.4m

Advertising commitment £0.5m

Fixed-line Telco provider £0.3m

My Wealth exceptional + £0.2m

8

iTouch plc

Quarterly Profit and Loss

(3.4)

(1.5)

36%

3.5

9.7

Q4

20022001

(3.4)(4.0)(4.5)(3.9)(4.6)(4.3)(3.3)LBT

(1.7)(2.6)(3.0)(2.7)(2.6)(2.9)(2.0)EBITDA

31%36%51%53%57%54%52%Gross margin

3.23.02.72.62.31.81.4Gross profit

10.38.35.35.04.03.42.6Revenue

Q3Q2Q1Q4Q3Q2Q1£m

(1) Drop in gross margin due to single, large Voice contract (2) Before exceptional items(3) Includes forex loss of £0.2m

(1)

(2)(3)

9

(2)(3)

(2)

iTouch plc

Revenue and EBI TDA

00.5

11.5

22.5

33.5

44.5

55.5

66.5

77.5

88.5

99.510

10.511

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1E*

Revenue

EBITDA Losses

* Q1 2003 is market consensus forecast

* * Q4 2002 includes £0.2m forex charge

* *

10

iTouch plc

Revenue by region

11

Full Year 2001

Africa 18%

Europe 56%

Asia Pacific

26%

Full Year 2002

Europe 74%

Asia Pacific

20%

Africa 6%

iTouch plc

124%

31%

(16%)

365%

9,694

1,403

1,579

6,712

Q4 2002

93%

13%

15%

178%

5,023

1,237

1,375

2,411

Q42001

33,61415,030Total

5,1193,895Other Data

5,1576,112Data messaging

23,3385,023Voice

FY 2002

FY 2001£ 000’s

Revenue by product

12

*

* Year on year decline is a function of decline in Data Messaging in H2 2001. Revenue grew each quarter in 2002.

iTouch plc

NFOD

2,6242,1363,3092,428Messages (k)Consumer Data

769

3,435

2,813

FY 2002

Average

534

1,687

1,681

FY 2001

Average

776

5,307

733

2,272

Users

Messages (k)

Corporate Data

2,5003,532Minutes (k)Voice

Q4 2002

Average

Q4 2001

Average

13

iTouch plc

Exceptional charges

• Restructuring costs of £0.3m

• The renegotiation of a fixed-line network operator service deal in the UK

resulted in a charge of £0.3m

• The Group settled an advertising commitment by way of a one-off

payment of £0.5m

• Write down of outstanding goodwill relating to iTouch I srael and full

provision against the funding loan and trade debtor balances

• Goodwill I mpairment

– Goodwill review at year end, charge £30m

– Impairment of goodwill relating to pre-IPO acquisitions

– Speed up time to operating profit and lower amortisation charges

14

iTouch plc

15

Wayne PitoutChief Executive Officer

iTouch plc

iTouch business model

I NFORMATI ON

SportFinancial

News

Applications/ ServicesENTERTAI NMENT

PhonePersonalisation

Games

MESSAGI NG

Voting/ PollingChat

Promotions

Content

Channels OperatorsPrint, Radio & TV RetailPortals Direct

‘8181’

Handsets

16

iTouch plc

I nformation services

• Well established Voice brands & services

• SMS push and pull

• Management of WAP portals on behalf of operators

• 2002 yearly total traffic:

– 34 million Voice call minutes (not including Messaging)

– 73 million SMS sent

17

iTouch plc

Entertainment services

• Device personalisation:

– Ringtones (mono & polyphonic)

– Operator logos, picture messages and screensavers

• Licensing for Java games & MMS I mages

• Partner with premium content owners, e.g. EMI , Universal

Pictures, Zomba Records

18

iTouch plc

Messaging services

• I nteractive voting

– Pop Idol and American Idol

– ‘I ’m a Celebrity …’ and American Idol 2 (Voice and SMS)

– Comic Relief (Voice and SMS for Pledges)

• Chat

– Text messaging

• Mobile Marketing

– FMCG Brands and short term promotions

– Builds marketing communities

– Targeted profiling of ‘difficult’ youth market

19

iTouch plc

20

Enabling platform

Connectivity

API

Cust

omer

Car

e

Billi

ng

Appl

icat

ion

Rou

ting

Chan

nel P

artn

er

Mng

mnt

CRM

Cont

ent

Mng

mnt

Rep

ortin

g

Enabling Technology

Distribution

Content and services

• Single, scalable platform

• Ability to integrate 3rd party

platforms/ products

• Multiple distribution channels

• Enables global partners

• Economies of scale

iTouch plc

Operators Media Portals Retail & Handset

Channel strategyDirect

21

iTouch plc

Revenue model

22

PRS Number 090 6522 3303

Premium SMS 8181

£1.50/ min

£1.50/ message

10% royalty

Content

Content

Download a Ringtone

£1.00/ min

95p/ message

••Retail Pack

••••Usage Fee

Java Games

Smart Messaging

(Ringtones)

SMS I nformation

Services

I nformation & I nteractive

Services

Mobile Data

•

•

Messaging (Voting)

Voice

iTouch plc

Acquisition strategy

m4 (UK)

Thus (UK)

Movilisto (Spain)

HGL (Business Mobility)

Telescope (UK)

Telequity (Australia)

New TerritoryProduct EnhancingCritical Mass

• Mobile data market ready for consolidation:

– Delay in expected mobile data revenue generators – Premium SMS, GPRS & 3G

– Number of high profile players facing difficulty

• Focused M&A team working within stringent criteria

– Stable businesses, EBITDA accretive with ability to scale

23

iTouch plc

Movilisto business

• Founded April 2001, revenues in 2002 ¼��P ��(%,7'$�¼����P• Leading provider of premium SMS applications and services in Spain & Portugal

• Services

– device personalisation (ringtones, screensavers)

– entertainment (games, horoscopes, alerts)

– messaging (mobile chat & mobile marketing)

– TV voting

• Direct to market with ‘7777’ short code brand

• 2002 full year operating Data

– ~ 30% of Spanish premium SMS market

– ~ 60m downloads

– ~ 150m SMS messages sent

24 * Subject to final audit confirmation

iTouch plc

Rationale for transaction

• Roll out of premium SMS business model into iTouch operating companies

• Extension of iTouch global content deals into Spain & Portugal

• Economies of scale (single platform)

• European consolidation, growth in European premium SMS market

• Group attains EBI TDA positive position

Spanish premium SMS market generated ~ ¼���P�LQ�����

iTouch plc

Fit with iTouch business model

26

I NFORMATI ON

SportFinancial

News

Applications/ ServicesENTERTAI NMENT

PhonePersonalisation

Games

MESSAGI NG

Voting/ PollingChat

Promotions

Channels OperatorsPrint, Radio & TV RetailPortals DirectHandsets

Content

iTouch plc

27

Deal structure

Maximum consideration ¼��P���ZRUNLQJ�FDS�DW�FRPSOHWLRQ

Minimum consideration ¼��P���ZRUNLQJ�FDS�DW�FRPSOHWLRQ

I mmediate payment ¼��P�VKDUHV��LVVXHG�DW���S�¼�P�FDVK~ ¼��P�ZRUNLQJ�FDSLWDO

12 month earn-out ¼�P�FDVK�VKDUHV- target ¼��P�(%,7'$¼��P�FDVK�VKDUHV- target ¼��P�(%,7'$

24 month earn-out ¼�P�FDVK�VKDUHV- target ¼��P�(%,7'$¼��P�FDVK�VKDUHV- target ¼��P�(%,7'$

iTouch plc

iTouch and Movilisto proforma – 2003

12.6

12.9

31

FY Movilisto

2002(¼m)

(0.2)

10.2

103.8

Annualised Estimate

2003 (¼m)

(4.5)(22.9)(LBT) / PBT *

(13.2)

50.4

FY iTouch

2002 (¼m)

Post completion

Estimate 2003 (¼m)

5.9EBI TDA *

93.5Revenue

* Before exceptional items

* * Numbers to be confirmed by final audit

* * * Estimates for the enlarged iTouch Group are market consensus plus Movilisto rated as zero growth for 8 months of 2003

* * * * Estimates for the enlarged iTouch Group are market consensus plus Movilisto rated as zero growth for all of 2003 28

* * * * * * ** *

iTouch plc

29

(7.8)8.1(2.0)n/ a(4.5)(LBT) / PBT

(0.5)7.9(0.2)0.05.9EBI TDA

11.536.019.054.093.5Revenue

Wapme4Acotel3Aspiro2Buongiorno /

Vitaminic1iTouch with Movilisto *

Estimated 2003 (¼m)

* iTouch with Movilisto annualised from May 1 2003 completion date1 Source: 4 February 2003, Buongiorno – Vitaminic merger press release, with turnover taken as midpoint of estimated range2 Source: IBES estimates from Bloomberg as at 21/03/033 Source: Multex Global Estimates, 24/07/02, and ARC Associates estimates4 Source: IBES estimates from Bloomberg as at 21/03/03, and ARC Associates estimates

iTouch comparison to peer group – 2003

iTouch plc

30

iTouch and Movilisto – revenue breakdown

Asia Pacific12%

Africa4%

Europe84%

Voice40%

Data60%

By geographic region* By class of business*

* Based on FY2002 iTouch results and Movilisto 2002 results

iTouch plc

Market opportunity

31

Market driven by a number of factors

– Premium SMS billing and same short codes across all networks

– Increasing network operator outpayments

– Enhanced functionality (Polyphonic, MMS and Java enabled handsets)

According to Strand Consulting, the PSMS market in the UK will generate between £265m & £850m in 2003

iTouch plc

iTouch at a glance

• I nternational reach – 120m+ mobile users

• Future opportunities:

– new billing models

– new multimedia handsets

– new markets

– new channels

• Proven track record

• Mobile data market consolidator

• Very well positioned for mobile future with:

– Fully funded business model

– Powerful international relationships

– Strong cash position

32

iTouch plc

Wayne Pitout Chief Executive Officer

John Miller Chief Financial Officer

4th Floor

The Tower Building

11 York Road

London SE1 7NX

Phone + 44 (0) 20 7803 1660

Fax + 44 (0) 20 7803 1661

33

iTouch plc

iTouch plcAppendices

iTouch plc

iTouch positioning in the wireless market

Source: Nomura35

In-Fusio

Digiplug

iTouch

Buongiorno

Akumiitti

WES

Movilisto

Cash-U

Empower

Messaging / Community

Ringtones / Icons

Entertainment /Gaming

Marketing/Alerts

Portal/Community

Wireless Application Services Provider / Content Aggregator

Application Infrastructure Provider

MCommerce

Flytxt

Mobilew

ay

WIN

DigitalR

um

UP

aid

Freever

Aspiro

Acotel

Digital BridgesHotsip

K M

obile

K Mobile

12Snap

Kiwee

UCP (Uboot)

End2End

iTouch plc

I nternational reachCountry Network Users*Ireland Vodafone, O2, Meteor 3m

UK & N.Ireland Vodafone, O2, T-Mobile, Orange 45m

Aust ralia Telst ra, Optus, Vodafone, Orange 12m

Sout h Africa Vodacom, MTN, Cell C 11m

New Zealand Vodafone, Telecom NZ 2m

Israel Cellcom, Pelephone, MIRS, Orange 6mThailand AIS, DTAC, Orange 8mSpain Telefonica, Vodafone, Amena 31mPort ugal TMN, Vodafone, Opt imus 7m

36

Portugal

New Zealand

* Number of registered users per countrySource Informa Telecoms GroupThailand

Australia

Spain

South Africa

United Kingdom

I srael

I reland

iTouch plc

Headcount

37

8-Portugal

35-Spain

186iTouch Global Services

43140 †Australia & New Zealand

369504Totals

1355Technical Development & Support

2576Group

1221PLC

49

120

22

49

295

March2003

49Corporate

136UK

32Ireland

65South Africa

379Consumer

April 2002

† Includes call centre staff