GMO Gmo

RNS Number:6730J
GMO Limited
29 September 2006


Press Release                                   29 September 2006






                                  GMO Limited



                             ("GMO" or "the Group")





                            Proposed acquisition of

                             20% equity interest in

                         Wisdom Choice Investment Ltd.



GMO Limited (AiM:GMO), a leading provider of wireless value-added services in
China, announces today that it has conditionally agreed to acquire an interest
in 20 per cent of Wisdom Choice Investments Ltd. ("Wisdom Choice") for a total
consideration of US$16.4 million to be financed by a mixture of cash and debt.
Wisdom Choice is the exclusive service and technology provider of ColorComm
Software Technology Group ("ColorComm"), a market leader in WVAS and an
interactive media company in China. An initial US$5 million cash deposit has
been paid and this will then be followed by a further instalment which is
contingent on inter alia, Wisdom Choice achieving an aggregate EBITDA of at
least US$8.2 million in respect of the two financial periods of six months ended
31 December 2005 and 30 June 2006.



In addition, the Company has been granted an option to acquire the remaining
shares in Wisdom Choice for a consideration of up to US$94.79 million, to be
satisfied in cash or by the issue of new ordinary shares in GMO.  The exercise
period expires on 15 February 2007 and payment on exercise is dependent on
Wisdom Choice having achieved an audited EBITDA of US$9.5m for the year ending
31 December 2006.



ColorComm is one of the pioneers in the development and launch of interactive
media entertainment services in China.  Since inception in August 2001,
ColorComm has rolled out its business across each of the 31 provinces in China.
Over the same period, ColorComm successfully penetrated more than 250 TV and
radio stations throughout China and revenue from Interactive media has increased
sevenfold since its launch in January 2006.  This rapid growth is strengthened
by ColorComm's policy of increasing its product range by two additions each
month.  In addition, ColorComm holds the patent for Magic SMS, a technology
which provides the seamless integration of SMS and MMS.



GMO believes that the acquisition of Wisdom Choice will strengthen its presence
in the WVAS market in China, enabling it to reach out to both mobile phone
subscribers and television viewers. This is underpinned by the synergies between
the two businesses which will enable GMO to accelerate the convergence of
mobile, television and other media within the WVAS value chain.  It will then be
well positioned to take advantage of a potential customer base of more than 400
million mobile subscribers and more than 1 billion television viewers.



Commenting on the proposed acquisition, Eugene Goh, Chief Executive Officer of
GMO Limited, said: "The obvious synergies between Wisdom Choice and GMO make
this an excellent acquisition for the Group and it will make us one of the
largest interactive media and mobile messaging company in China."



                                    - Ends -

For further information:
GMO Limited
Eugene Goh, Chief Executive Officer                     Tel: +44 (0) 7786 787005
Eugene@mtouche.com                                             www.gmoglobal.com


Corporate Synergy Plc
John Wakefield / Mike Coe, Corporate Finance           Tel: +44 (0) 117 933 0020
Jwakefield@corporatesynergy.co.uk                     www.corporatesynergy.co.uk



Media enquiries:
Abchurch
Henry Harrison-Topham                                  Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com                               www.abchurch-group.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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