GON Galleon Hldgs

RNS Number:3459O
Galleon Holdings PLC
20 February 2008

20 February 2008

                              Galleon Holdings plc

     Acquisition of Wireless Interactive Platform Service Provider in China



Galleon Holdings plc ("Galleon", the "Group" or the "Company"), the AIM-listed
intellectual property owner and developer in the entertainment sector, is
pleased to announce that it has acquired control of Changsha High and New
Technology Industrial Development Zone Yunbo Information Technology Co., Ltd 
("Yunbo"), a Wireless Interactive Platform Service Provider in The People's
Republic of China ("China") for an initial consideration of USD3 million and a
deferred consideration as described below (the "Acquisition").

The Acquisition is complementary to Galleon's strategy to become a leading
provider of multiplatform entertainment, based around interactive TV in China.
In October 2007 Galleon acquired Phoenix Investment Global ("Phoenix"), a
provider of interactive entertainment services to broadcasters in China. Yunbo
provides the mobile billing infrastructure for the product offering that Phoenix
delivers to its existing broadcast partners. The Acquisition will allow Phoenix
to retain the revenues derived from the collection of the SMS and mobile phone
revenues generated by Phoenix's existing activities.

Yunbo is expected to deliver a number of direct strategic benefits to the
Group's customers by offering a wider range of services and providing the Group
with cross-marketing opportunities and a broader client base.

Among Yunbo's customers are major domestic PRC companies such as China Tobacco
Hunan Industrial Corporation, Hunan Media Group, Shenzhen Wireless mobile
Science &Tech Ltd, and Da Guo Music Recording Studio.  Yunbo derives its
revenues from transactions involving SMS, MMS, IVR, WAP, ring-tone &
ring-back-tone, and KJAVA games.

Established in 30th June 2000, Yunbo is one of the fastest growing Service
Providers in the wireless short-messaging service (SMS) and multimedia messaging
(MMS) market in China, and holds nationwide SMS billing codes for both China
Mobile and China Unicom. Its unaudited EBITDA for the 12 months to 31 December
2007 was RMB6.7 million (USD937, 000).



Commenting on the acquisition, Stephen Green, Chief Executive of Galleon, said:

"Yunbo is highly complementary to our strategy to provide cross platform media
entertainment which is focussed on emerging markets with large TV audiences and
high mobile phone penetration. The Acquisition will expand the Group's
entertainment services platform and is expected to enhance operational revenues,
allowing us to retain a higher proportion of the SMS and mobile phone revenues
from our existing activities."



Terms of the acquisition

Galleon has acquired control of Yunbo through the acquisition of the entire
issued share capital of Lushy Assets Limited and Mengbo (Shanghai) Information
Technology Co. Ltd for initial consideration of USD3 million. The initial
consideration is to be satisfied by the payment of USD2.5 million in cash
immediately of which USD950k is for the Net Current Assets of the business, and
the issuance of 898,856 new ordinary shares in the Company (representing shares
to the value of USD500,000).  A deferred payment of USD1 million in cash is
payable on the 31st May 2008 and is subject to any adjustments for the
recoverability of the receivables in Yunbo's management accounts or adjustments
to the Net Current Assets in the audited accounts at 31 December 2007.

A further performance related deferred consideration may be due based on Yunbo's
EBITDA during the 12 months to 31 December 2008. The amount of performance
related deferred consideration due will be a multiple of between 4 and 7 times
the EBITDA achieved by Yunbo during the period to December 2008 less USD3
million (being the Initial Consideration). The performance related deferred
consideration will be satisfied by the issue of new ordinary shares of 1p each
in Galleon to the vendors in September 2008 and March 2009.  The total cash and
share consideration payable is capped at a maximum value of USD16 million.

Application has been made for the initial consideration shares to be admitted to
trading on AIM which is expected to occur on 25 February 2008.





Enquiries:

Stephen Green, Chief Executive
Galleon Holdings plc
Tel. 020 8742 3636

John Bick, Hansard Group
Tel. 020 7245 1100

Graham Swindells
Kaupthing Singer & Friedlander
Nomad & Broker
Tel: 020 3205 7500

www.galleonplc.com


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