Mobile Advertising

24MAS is a mobile advertising and applicationspowerhouse specializing in fully-managedmobile marketing services.

The 7th global mass medium

There are now more mobile phones in the world than televisions and computers combined and there are more mobile Internet users than PC users. As reported by Mobile Marketing Watch in March 2010, global investor interest in digital media has surpassed printed media for the �rst time in history. 24MAS o�ers a turn-key solution to reach, engage and achieve high conversion rates through a customizable mobile presence.

24MAS is headquartered in Stockholm, Sweden, with operation centres in Singaporeand Kuala Lumpur; as well as with representation o�ces in London and Helsinki.

24 Mobile Advertising Solutions AB

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Mobile marketing is fast becoming the most in�uential medium in digital commerce and 24MAS is taking full advantage of the vast opportunities in this space. We enable our partners to reach and engage consumers wherever they are through our mobile advertising, mobile publishing and application hosting capabilities. Capitalizing on mobile’s increasing in�uence, we are in a prime position to cater to the growing demand for monetizing subscriber in�uence and opening up new revenue streams. Our strong presence in emerging markets across the globe allows us to work with leading industry players to give them superior potential for growth.

rates through a customizable mobile presence.

Business in general

The number of reachable individuals rises every day and business analysts are predicting even faster growth for mobile advertising. Even more compelling is that mobile marketing is achieving greater ROI than both online and other digital media. We work with the whole ecosystem of mobile advertising and application distribution from various forms of reach, interactive ways to engagement and a long term model for retaining advertising initiatives. This is possible via a comprehensive technical platform, large application portfolio, various advertising formats and a strong presence for advertising reach and application distribution via global publishers.

Given the impact mobile has made, traditional media companies and brand owners are looking for their own mobile distribution channels to market their proprietary content. Similarly, developers are seeking better ways to monetize their apps without compromising quality. Operators, as always, welcome new partnerships that can raise their ARPU while enhancing value for subscribers.

Mobile advertising addresses all these needs. Ad-enabling mobile content allows for greater success in generating additional and predictable revenue streams. Whether you are an operator, media outlet, brand owner or developer, 24MAS provides the solution to fuss-free mobile-enabled resources through our optimized value chain. In the same way, we o�er a one-stop-shop app store hosting solution to ensure business continuity and management of application portals.

Our decade-long history gives our partners the added assurance of our proven expertise in the industry, which along with our current expansion paves the way for us to outperform the competitors in the mobile marketing landscape. Being a liability-free company with healthy cash �ow, seasoned management team, well-suited products for the mobile economy, and advanced technology are the key qualities behind 24MAS’s positive business outlook. We are focused on the Asia Paci�c and Latin American regions where the products are spot on for the market needs.

Ad-wrapping technology is the future of

mobile advertising

3 Synergetic business units of 24MAS:

1. Mobile advertising2. Mobile publishing 3. Managed Services (Hosting)

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1. Mobile AdvertisingAfter surveying the mobile advertising business models prevalent in the industry, 24MAS management graded each of these based on a frame-work focused on identifying the ones best suited to the scalable and aggressive growth in multiple markets. The result is our optimized value chain that o�ers the best revenue advantage for all its members.

24MAS goes beyond serving impressions. This means our proprietary and scalable platform is designed to o�er a more rewarding approach to monetizing mobile assets. We give operators, brand marketers, develop-ers and content owners a new media channel to reach their target audience. Our complete range of service o�erings include mobile campaign management, ad-funded application store solutions, real-time analytics tools, developer SDK, and user targeting capabilities, all of which are applicable to all smartphone platforms.

As owners of the ad space and user base, the value of operators in mobile advertising cannot be overstated. With this in mind, we provide our partner operators the opportunity to extend their relationship with subscribers by o�ering advertising-enabled games and applications to maximize engagement and generate new revenue streams. This also becomes an additional revenue stream to bolster decreasing returns from the traditional voice, data and SMS. On a larger scale, we can build operator-branded application stores to provide end-users a centralized location from which to download games and apps.

One recent study found that parents with young children are more recep-tive to mobile advertising. To fully bene�t from this kind of information, it is important to understand end-user response to the campaign. 24MAS provides an online measurement system that presents a clear reporting and analytics tool to gather data on all critical parameters. We have designed this tool for quick and easy management of tasks such as revenue sharing, campaign status, results and technical speci�cations monitoring and reviewing usage patterns.

Any successful marketing campaign must be able to reach consumers wherever they are and mobile is the one platform that can guarantee this. Initially, brand marketers were slow to react in relation to bringing their campaigns to the mobile space. However, times have changed since as evidenced in a report published by Juniper Research. The company predicts that ad spending for mobile games will reach $900 million by 2015. It may soon be that what we now wide consider as ‘the third screen’ of advertising will become ‘�rst’.

Hosting

AdvertiserAwareness,

Engagement and Sales

DistributionMobile Operators,

Media and Online partners

ApplicationsReach, Targeting and Ease

of Use

System Integration

ConsumerImproved experience

and value for free

Consulting

24MAS's ecosystem puts the technology, content, and advertisers all in place from the very beginning to speed up the time it takes for mobile advertising to go live and establish itself as a new pro�t centre.

Our mobile advertising ecosystem

2. Mobile Publishing

Mobile content uptake continues to soar globally fuelled by the introduction of new smart devices that enhance the end-user experience. 24MAS’s mobile publishing service is a one-stop-shop solution that o�ers a seamless means to create, publish, manage and monetize. This is made possible by our scalable cross-platform mobile architecture where high quality digital content reaches the widest audience.

We have partnered with media companies, content owners, app developers and game studios to license content for an extensive application inventory covering the most popular categories. Through our developers program, we serve games and apps with the highest paid ads on the market to give developers better revenue opportunities and have made integration simpler through our proprietary SDK.

Meanwhile, application stores have positively reduced the amount of time it takes for games and apps to reach user distribution channels. With our customizable application store solutions, we can re-brand a fully-managed app portal for any purpose, audience, operator, or advertising campaign. This product eliminates the taxing process of setting up the architecture, technology and mobile commerce transaction system. Through our subsidiary hosting services company 24 Solutions, we ensure consistent and continuous service from initial set up to back-end management.

Another valuable way we enable clients to take advantage of the interest in mobile is through mobile websites. Currently, there are more mobile phones than PCs and it is vital to integrate existing online assets into this platform. 24MAS can deliver fast set-up of all types of mobile web solutions that adapts branding and corporate identities into the mobile world. A mobile website captures the best of the Internet with multi-functional capabilities of both feature and smartphones.

3. Managed Services (Hosting)

Accessibility, security and cost are signi�cant factors in the success of mobile advertising and mobile publishing ventures. Powered by 24 Solutions, our hosting business unit, we o�er best in class application hosting and data storage services that ensure stability amidst ever changing demands and needs of every client. Our vast expertise and market insight in this area enable us to achieve optimum data protection, interoperability between storage functions, and sound management of user data and inventory.

We carry out continuous system management and monitoring for our application store hosting service, data storage and protection and handling of customers’ information and large data volumes. Mission-critical information is made easily accessible while ensuring that the storage and distribution processes comply with rigid security standards.

Our mobile hosting unit is looking at steady revenue growth for the coming years as business becomes more predictable and achieves further sustainable growth curves for 2011 and beyond.

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Key �gures that underscore growth potential in mobile advertising

5 Billion mobile subscribers

2x as many TV sets

3x as many Internet users

4x the number of PCs

31% of music dollars spent on mobile music

20% of video gaming software is on mobile

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Optimized value chain position24MAS’s biggest competitive edge is the company’s wide reach in emerging markets across the globe. Our objective is to o�er our partners fully managed Mobile Advertising and Mobile Publishing solutions with comprehensive Mobile Hosting solutions founded on the industry’s best practices and an experienced management team.

We can leverage on opportunities to accelerate revenue generation from an expanding subscriber base while guaranteeing the most value for each user experience. 24MAS is well-established to surpass its competitors with our extended o�ering. While most of our competitors lack capabilities in the hosting solutions area of the business, we can boost our advanced mobile advertising and publishing products with hosting solutions to increase our competitive margin.

Our technology is designed to maximizeROI and avoid spam

One of the key design points for 24MAS’s end-user experience is that the subscribers decide what to look at, when and where. We designed our solutions to avoid spamming. This is an equally important matter for advertisers where branding is everything. They will not invest in any media that has a bad and intrusive reputation that will re�ect negatively on their brands. To address this concern, we have ensured that the pro�les of users who use di�erent applications and download content match the business objectives in the media briefs. This ensures targeted ads and maximized ROI (return on investment) and, more importantly, subscribers get what they want. Our research con�rms this as the most acceptable way to market on mobile and, therefore, points to the mobile advertising as the most scalable medium.

Mobile advertising on games is estimated to reach$900m by 2015Source: Juniper Research (January 2011)

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Geographic markets24MAS’s marketing strategy is to establish industry leadership in geographic regions characterized by four criteria: Large population Excellent infrastructure in place or underway Continued regional growth expected Market dominated by a small number of (two to three) large operators Markets of strategic importance for mobile advertising as stated by the media industry

Markets that match the above criteria are primarily the Asia-Pac�c (APAC) and Latin American (Lat Am) regions.

Many subscribers in APAC use their handset instead of a computer. Fixed broadband connectivity is sparse and mobile networks are expanding. Also, the handset has become the most common way to access e-mail and the Internet in this region.

Meanwhile, in India, the handset is replacing not only the PC but also radios. By using the most popular mobile application in the country, the subscriber calls a radio station and listens to the broadcast through loudspeakers hooked up to the mobile telephone.

The 24MAS group o�ers turn-key solutions

Thanks to established partnerships with application developers and media houses, the 24MAS group can o�er completesolutions for operators and media companies, as well as on the other side of the equation for the application developersand content owners. This means that technology, content and advertisers will be in place from the start. This minimizesthe time for the operators to establish mobile advertising as a new pro�t center. By o�ering the reach of mobile subscrib-ers of multiple mobile operators to the application developers and content owners they can bene�t by accessing massmarket volumes with targeted advertising. Traditionally it has been very di�cult for them to get access to many operatorchannels. 24MAS can provide them a faster access to reach mobile subscribers in multiple territories.

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Like the Internet ten years ago

Today’s market for mobile applications shows similarities to the Internet market ten years ago. Development is basically driven by technology advancements. Handsets are getting cheaper yet more powerful and data transmission rates continue to increase. The current 5 billion active mobile subscriptions present enormous potential for new markets.

People turn to their handsets for a growing number of practical as well as recreational services. Therefore, the importance of the mobile devices as a channel for consumer communication is becoming more and more funda-mental to any business.

Fee or for free?

Mobile applications can easily be downloaded from the Internet directly into the handset. Consumers in the western world, however, prefer to view adver-tising in exchange for free mobile content services.

The combination of a growing demand but a reluctance to pay for content services among consumers creates welcome opportunities for advertising funded applications, games etc. Through this model, consumers are given the choice whether to pay for the service or to access it free with advertising.

MARKET VIEWS OF MOBILE ADVERTISING

Mobile applications investments estimated to be $25B by 2014 According to Juniper Research, 15 February 2010

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Trends

Operators see increasing network tra�c

Mobile operators are looking positively at the anticipated increase in tra�c volumes due to mobile advertising’s rapid growth. At the same time, this development is dependent on the availability of applications and technical platforms required to combine the commercial messages with content, such as practical services, games, movies, music or interac-tive information.

Going from minutes to �xed rates

Whereas they previously charged by mere call minutes, most mobile operators today o�er �xed-priced subscriptions that include both voice and data services.

This varies regionally depending on the available infrastructure and related billing systems. GDP is also a relevant factor for each of these territories. This gives 24MAS an opportunity to o�er di�erent advertising funded services in di�erent countries.

Advertisers want to target speci�c consumer pro�les

Advertisers often look for ways to concentrate campaign resources on strategic target groups and welcome the opportunity to maximize opera-tors’ subscriber knowledge. Previous mobile advertising campaigns, limited to a broadly distributed text message, now consist of a full-screen, individually designed ad sent only to subscribers matching a predeter-mined pro�le.

Hence, the biggest advantage of mobile advertising is the option of targeting. By targeting consumers, end-users can receive relevant adver-tisements directed to them personally. Advertisers can choose to target a speci�c demographic group deciding on sex, age and location or even other targeting options such as positioning. Positioning is a revolutionary approach to marketing and advertising wherein relevant advertisements are given an entirely di�erent meaning.

Mobile advertising grows despite the economic downturn

Advertising revenue has always closely followed economic trends. The economic slowdown has been and will be challenging for the advertising industry as a whole but new avenues like Internet and mobile platforms are more dynamic. We have seen a market allocation shift from traditional formats to digital; the economic downturn has indeed a�ected mobile advertising but not in a negative way. Because advertisers have less money to invest, they are more interested in smaller sized campaigns. This has driven them to try out this new format which allows them to target speci�c audiences far more e�ectively than traditional media methods. Although there has been talk about this new format being expensive in a CPM/cost-per-thousand point-of-view, user targeting that allows adver-tisers to reach their speci�c audiences still equates to cheaper campaign and more measurable results overall.

Today, any commercial message posted on the Internet can be delivered to any mobile device. The demand for

mobile advertising space is growing!

Top 10 reasons why 24MAS will perform well in the market in the future:

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Mobile is the largest media channel in EMERGING MARKETS

24MAS is focusing on the Emerging Markets strategy. The company has a clear management focus to conquer the Asia Paci�c region and Latin America. These regions are recognized to be of high interest to advertisers due to the large population per country. If you look at the Emerging Markets in general, it is highly evident how the mobile device is the most important communication tool. Many of the Emerging Markets do not have su�cient infrastructure for the �xed line telephone systems or Internet so the mobile phone is the sole device people use to access the Internet.

Growth in VOLUME of ad impressions

AAd impressions served by the largest advertising networks in the mobile sector have been mind blowing: billions of ad impressions per month. These numbers show that there is big business in mobile advertising. Logically speaking, this is only natural since most of the consumers advertisers are targeting have mobile phones. There are more mobile phones than TV sets, computers, other devices or access points put together to reach the largest possible amount of eye balls.The technology 24MAS has gives leverage to both advertis-ers looking to reach more eye balls and mobile operators looking at �nding new revenue streams.

Mobile Advertising is delivering RESULTS

Since the early stages of mobile marketing, which was mainly project-driven business for the service providers, it was obvious to everyone how data and reporting on the mobile channel was very good and accurate. After moving on to a proper scalable advertising stage, the campaign related statistics and �gures are more outstanding than any other media channel. The click-through rates and conver-

sion rates on mobile advertising are superior to online adver-tising. This is the reason why 24MAS can succeed in mobile advertising; the company has the clear advantage of having strong relationships with mobile operators, which gives advertisers even better results.

BIGGER BUDGETS allocated to Mobile Advertising channel

From traditional digital advertising budgeting point of view, the proportional winner is clearly mobile advertising. Even though the popularity of new media channels in general are still on the rise compared to more traditional media channels, mobile is already taking a lion’s share of budget allocations. And even though overall investments in terms of hard cash are still much lower than online, the percentage of growth for digital media budgets gives mobile advertising a very positive short-term and long-term outlook for the future. Bigger budgets mean that consumer reach becomes even more important. This is, again, where 24MAS can demon-strate its strong position in the value chain.

WELL MANAGED COMPANIES in the sector with proper experience and vision

Due to rapid development in the mobile sector from the past decade, there are lots of companies that rose sky-high only to plummet in their subsequent business models, market entries, management choices and product o�ering. Many companies that have survived the past year’s telecom indus-try recession are on their way to a thriving future. Since the telecoms industry has always been a world of fast-changing technology and related business models, there are enormously high levels of experience and management skills in well-performing companies. If we look at the traditional advertising industry, it has not been as lively and technology developments have been somewhat less advanced. Combining the talent in mobile technology with the user reach capabilities of the mobile operators and digital advertising outlook with the advertisers’ vision to reach

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COMPETITIVE ADVANTAGES OF 24MAS

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how the mobile content business is presented, priced, format-ted and delivered to the mass market. This probably is one of the main changes in the mobile business since the initial forms of the walled-garden style operator portals were launched some years ago. This change has generated a lot of awareness and interest to mobile phone users who have never down-loaded any content before from their operator content portal. Our history in the hosting business makes us, quite possibly, the best-suited company for the mobile applications era in the current market development. This keeps us ahead of the competitors as we have been in the content management and serving business for more than a decade.

VIDEO ADVERTISING is gaining ground

Mobile advertising has advance its humble beginnings as text message ads to becoming full-display media, there is huge expectation that video advertising will shoot up soon as well. Already, analysts are counting on the importance of video advertising, expecting it to gain the most ground over all other mobile advertising formats. This, too, shall come naturally since any actual ad placed in the mobile device in its richest format, like video, will achieve maximum results due to a richer user experience. Our development hub in Kuala Lumpur has been working on future advertising formats and products. 24MAS has a strategic position as we can collaborate on future possibili-ties with our mobile operator partners. This is a key advantage in testing future products.

Everybody has a MOBILE PHONE and ADVERTISING is never going to stop

Basically, everyone has a mobile phone, and advertising will not cease existence. Combine these two simple facts and you’ll arrive at 24MAS’s value proposition. Emerging markets o�er a huge growth potential for both mobile content and mobile advertising. More often than not, GDP is lower in these markets than in their western counterparts; free content to the mass market is well-received and generates high interest. Therefore, 24MAS is well positioned in the marketplace with great product o�erings and the right choice of the geographical targets. At the end of the day, it’s up to the consumer to decide what to down-load. What we are doing is to ad-enable their choice of apps or content, making it targeted and valuable. Our distribution model is sharp contrast from pushing random banners or o�ers because we are sure our ads are distributed to people whose interest pro�les we know. We have a great position in the indus-try, and the development of the business is predicted to be remarkable all over the world. All the above mentioned points add up to a very positive looking future for the company.

mobile phone users with targeted advertising—it all looks very exciting.

The management of 24MAS has seen the early stages of content download services in the 1990s, the past ten years in the hosting business, the dawn of new media, and, �nally, the growth of the mobile advertising and applica-tions economy. Lessons from the past and visions for the future are well in the minds of the senior management of 24MAS.

Mainstream HOUSEHOLD BRANDS are entering the sector When mobile advertising started, most advertisers were typical content owners who wanted to grab more users from the content download subscriber base. This fuelled a bit more content revenue for those companies courageous enough to put additional investments into banners and text campaigns. Today, big household brands are the biggest advertisers, which means that the mobile advertis-ing industry is considered “trustworthy” and pro�table. This will encourage media planners and buyers, ad agencies, media companies and brands themselves to make their clients aware that digital advertising budgets should have allocation for mobile advertising as one of its key elements. The reason for the mainstream brands coming into the sector is very simple: better targeted advertising and massive user reach opportunities. 24MAS can serve these needs very well owing to our strategy in the Emerging Markets and the technology we harness to enable advertis-ers to reach more users.

Google, Apple, Yahoo!, Microsoft... RECENT M&A ACTIVITIES

Seen in the past couple of years, the above-mentioned big companies have been acquiring small mobile advertising companies across the value chain. Most notable are the recent M&A transactions such as Google buying AdMob for US$750 million and Apple buying Quattro Wireless for US$275 million. This shows how valuable the mobile adver-tising sector has become and we will see more companies change their business models and acquire skills and technology to go after this untapped opportunity. 24MAS has entered into the IPO process and are open to possible M&A opportunities that might transpire through this. We know that the core of the company is very strong compared to many of the recent acquisitions. The company has great geographical market focus, a solid management team with a long history of building successful companies, positive cash �ow, products that are hard to beat, superior technology, a supportive and skilled Board and right timing for either public listing or trade sale.

Increased consumption of MOBILE APPLICATIONS

The launch of the Apple AppStore has generated massive consumer application downloads. It has certainly changed

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Mobile is the largest media channel in Emerging Markets

Increased consumption

towards mobile AppsResponse rates are superior on Mobile

Mobile advertising technology

has advanced

Major global brands have taken to mobile

advertising in a big way

Number of Ad Impressions served

Video advertising is gaining traction

Mobile advertising is delivering results

Adspend on mobile is increasing as its role in

digital marketing grows

Google, Apple, Yahoo! and Microsoft have entered the market

Reasons to believe

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Global Footprint of Mobile Operators

Main o�ce

24 Mobile Advertising Solutions ABHastholmsvagen 28, 5th Floor, S131 30 Nacka,Sweden

Phone +46 8 535 24 100Telefax +46 8 535 24 199www.24mas.com

Stockholm . Singapore . Kuala Lum

pur . London . Zurich . Lima