Bright Things is the developer of a games comsole and software for the pre-schools market. It has reached agreement with Bondai UK for the exclusive distribution rights of its educational games console. Bondai has guaranteed to purchase 100K consoles and 200K units of associated software in the first year of a 3-year agreement. Bondai's quote is: "We are very pleased to be associated with what will prove to such a high profile property in a competetive market place. The TV titles which are already in place, and many more in the pipeline for future use, will give the 'Bubble' games platform tremendous appeal to young children'.

BGT are Play of the Week (26/5/05). Good write-up that gives useful info. Quick summary:
- recounts things that could go wrong: technical problems delaying launch; parents don't like the look or think games too expensive at 17 on top of 50 console price;entry problems into US/Europe; impact of competition shortening product life. Nothing there to worry.
- team's terrific track record with Eidos
- easy to use with few buttons and infra-red link to DVD
- games only cost 150K to develop; clearly that's where BGT see money being made; 6 games available at launch plus 10 titles per year
- losses in first two years then PE of around 10 in 2007 then ballistic profits until a 'buble bursts' due to comeptition or boredom.

Really helpful piece written with an element of caution. Only looking for sp of 150p in under a year. Funds raised at 150p so institutions will be looking for more. As a Grandad, I'll be buying one and reckon this will really fire the imaginations of parents and be a must for Play Schools.

thanks EW for opening this one.
The guys who run Bright things are the same guys that bought Eidos and turned it around with Lara Croft....They sold out to start Bright Things, I understand, and since then Eidos aint doing so well. The city are just latching on to this one!!

ding dong.... BGT on the move again!!

Jules

Thanks for the introduction. Its good to have a really good margin after one day! Do you reckon that a Bubble would be worth 50 to BTG. If so, 100K in year 1 would mean 5m, quite a lot of which would come through to the bottom line. Base this on thinking that it is a DVD player plus screen and computer. Could sell at more than 100 but that would then limit the take-up as a pre-school educational toy. Mind, it must be a must to have several in a play school. The shape of things to come. Suspect I may have to accumulate!

Eric

ding dong... BGT...again:-))

Jules

You didn't attempt my question on the likely cost of a Bubble - very significant in forming a view on the movement of the sp. Any ideas? I do agree the ding, dong bit! Added a CFD today.

Eric

Difficult to see why the price jumped today. Even given that two early trades for some 26,000 or so were buys rather than sells that would just bring matters back to even stevens.

Looking back to the jump in Janaury in the sp. The second part of that was occurring during the week of the London Toy Fair when Bubble was being unveiled to the trade for the first time. The launch is not until the summer but I expeect Bondai are lining up sales whilst BGT themselves finish the programming and compelte development generally. I imagine production is sub-contracted - can someone confirm? The 'toy' will be very much in the children's eye and there fore the public's when it is launched and, with assured volumes through, Bondai, I expect the sp to roar to highrer ground. Will probably tuck away a few more from time to time.

Eric

The BGT bubble will be on show at the toy fair this week. It is retailing for around 59 as far as I understand. Has had a retracement today due to announcement of a placing... Pretty sure that this will be lapped up and that the price will not be much lower than the bid price of 166.. So will show good support for a share that will have risen over 100% in the last few weeks. I am looking to add alot more as this concept should have a great deal of appeal and is beginning to get the city very excited as the guys who run it are very well respected annd tend to deliver what they promise (so I have been told)
This bubble has no wires and is geared for preschool children. It is an interactive game which only needs the use of a dvd player or playstation or xbox. Children can watch their favorite programmes which range from teletubbies, to thomas the tank. (You name it BGT have the rights to use it) When their favorite character asks them to do something , they can , so the kids feel part of the action. It is also aimed to be educational , teaching the kids through their favorite programmes basic concepts that children need to learn. Think the potential is huge. Know of some kids who trialled it and it was a HUGE success with both them and the parents

Jules

An absolutely brilliant post. Worth repeating on the ASC Challenge thread as it is general interest apart from the investment opportunity; also a service though to the guys and gals there as the investment opportunity is a very good one. 59 is a bit less than I thought but that will mean the volume should be much higher. Take out VAT and you are back to 50, halve that for mark-up to 25, take out Bondai's half, say, and you have just 12.50 back to BGT. For the first order of 100K that is 1.25m. Against that you will have costs of another half so we have a contribution of some 600K. perhaps 1m pbt in first year or a pe of 25. But what's the market? Every pre-school group. Should become a must have for most families with young children so we could be talking about a million units in the UK alone quite quickly. The palcing will overhang for a while but the very fact of tehir confidence in raising funds at close to the market price indicates that the investment case is strong at current prices. Will definitely top up. Are you sure the toy fair is this week. The Bondai annoucement referred to the Toy Fair this week and that was 24th January.

Eric

I know EW, but apparently there is another toy fair.. or have I misunderstood?
Now you mention VAT, I am not sure that the price includes or is excluding VAT

EW... hope you are watching. They have closed the spread. Think wins may have twigged that he may need some stock if the placing has gone quickly:-)

Expect there are several toy fairs, so that's the answer. A price of 59 (or 59.95) would be quoted to include vat but its not relevant to back of the envelope calculations. Does that include software? - Bondai contracted for twice as much software as hardware. Glad the price is not too high to put off cash strapped families - within most families range. The peer group pressure amongst play group children will be intolerable. Obviously will have to top up in the morning. My gut-feelings are getting ever stronger. Thanks for doing the post on the Challenge bb (and for 'admitting' you're a girl!) EWR

Nice few buys in bgt today after placing announcement yesterday... plans must be close to being finalised!

Jules: just waiting a wee while for them to get the placing done as that might hold the sp for a few days. Other exciting plays around. I hope you picked up moneyplus's GMC hint. Up 20% on my first day! Hoping she doesn't hear as it wouldn't do for her to be jumping about on her new knees. I expect there will be a steady news flow before long so best not to hang around too long. This is my "moral" play to offset GMC. Mind the good book talks about " making friends with the mammon of unrighteousness" so think I'm covered.

Eric

Eric... certainly did get into gmc.. close for 40% profit and got into tou which has a large gap to fill.
BGT.... don't wait too long... Think you may find it will move quickly when the placing is announced near the current price.. Placing will be gobbled up by funds... and that is not a ramp!!!

Jules: you'll be pleased to hear that I have topped up with a CFD for 6000 at 167p. Reckon the placing, which should be a doodle, will set a support level at about current sp, so its one way traffic from here. Never been able to turn down a maiden's plea! Notice the trade is not shown: CFDs sometimes are and sometimes not; clearly can change the picture.

Eric

EW... well done..... have a feeling that the placement was oversubscribed to at these levels...hmmmmm:-)

Nice move up by BGT after placing at 1,50 which was well overscribed. Chart looking ripe for a move up. If you thought I was joking about a ten bagger, then berate me in a year's time:-)

BGT really running today... just the beginning

Jules

Great! Missed the over-subscription. It would explain the rise though as some had to buy in the market. The references to the reason for funding seem to concentrate on software and launch: this seems to suggest that the physical compnents are standard buy ins - is that how you see it? What's the basis for your 10-bagger claim? I will accept 'feminine intuition' as an answer! My 'mere male intuition' tends to agree!

Eric

Where are you, Jules? Never answered my last question - naughty girl! Surely you haven't left you first love - BGT, that is, not me!

Eric

EW hmmmm I thought I had answered it...must have pressed the refresh button instead of post reply.... Sorry!!
No I haven't left BGT, infact I have added to my position on the real world.... but also remember I never fall in love with a share.If the chart goes against me I shall be out... That is how I make my money. At the moment it seems ready for another upward spurt... We shall see!!!
My ten bagger claim is based as you said on female intuition. Having had 3 children, I feel this product will be a sure fire winner in this busy world for mums as she can get on with her job whilst they are being interactive with an educational DVD. The Japanese already like it enough to pre order, The Americans are showing large interest etc. When this hits the market in June/ July then we will certainly get the fuller picture:-)

Taken from an article on bgt website... (30 April 2004)

http://www.brightthings.com/press.html


"The console, which has a clip-on fascia that can be changed as children grow, will probably be launched after Christmas or early in 2005. It will probably be sold in toy stores and video games retailers for about 40 pounds -- substantially less than the price of existing consoles. The games will cost around 15 pounds each, again less than games aimed at teens and adults"

Don't know if this has already come to your attention or maybe its irrelevant and has been superseded by some more recent news, but if the "clip on fascia" costs 40 pound and the price of the existing console is substantially more, is the sixty pound mark a bit conservative? Also interesting to see the games will retail at around 15 pound.

Any thoughts?

Its interesting how a bb can be forgotten and languish on the 'more' pages. BGT deserves better than that. I took my profits at 200p+ so personally quite pleased for it to come back through lack of news. Bought back in today although the volume is low.

dawsinho: your query has remained unanswered. I expect the 60 is console plus fascia. The biggest margin is likely to be on the software and Bandai have committed to 200,000 units in year 1 or 3m worth for the UK and Ireland markets. Take half of this for BGT, multiply it by 10 for US and Japanese markets and you have 15m mostly coming through to the bottom line, lets say 10m. With a growth pe of 20 that would be a cap of 200m and an sp of 13. jules 10-bagger seems reasonable. Reckon the excitement in the market will be huge once launched in the market and BGT will therefore steam ahead as June approaches. Plan to tuck some away regularly in the meantime.

Eric

Eric, the coming months will prove very interesting. Lots of intuitional buying recently which is always good to see. Look forward to a possible update and hope things are all on track, this has the potential to be huge.

dawsinho: agree; will be a must have for play group and entry classes in primary. Then the parents will have to match the Joneses. One can imaging the publicity. A cap. of 30m is not a hostage to fortune. Its out of sight at the moment but it could become eye-boggling. There is good support at the present price from the fundraising. May be quiet until around June but that is an opportuntiy to beuild a decent position. What are you up to, Jules - any insider information?! I think her family are part of the test marketing!

Eric

Jules: where are you? BGT needs a shot in the arm; it has come back with the market, yet no one wants to buy; how can all the enthusiasts be so fickle? post(s) please!

Eric

Eric, trouble is we have to play a waiting game until news is released! (something most investors don't like) The potential is here, feel its just a case of sit on your hands and wait for updates etc.. I for one like the fact that it has dropped back, gives me the chance to get some at a good price!

Hi, dawsinho, just popped in to check. Agree your sentiments, rather belatedly. Probably need to wait for the launch with attendant publicity: I think June or July.

Another call for Jules who is needed at ther station to report inside knowledge of our little baby. Or is she having a baby of her own? You can't really rely on these women!

Eric

No reply from Jules. Has become very modest and retiring. Update needed!

Eric

On the up today. Have bought back in after getting stopped out! emailed bright things last week and still no reply back from the company, so have emailed again (and annoying shareholder award goes to...). Far as a know the launch date is still this summer.

Was looking at this one earlier in the year but didn't have the funds available to invest until it broke through 200p. I've been watching it retract and now feel as though we've bottomed out so have climbed aboard. Just waiting for the news now :-)

Seamus, good stuff. Must say i didn't expect it to fall so much but with the market as it is anything is possible! Everything seems to be in place now, cash from placing etc so hopefully a smooth ride back upto the highs of the previous months.

Daws

What do they say: great minds think alike (but fools seldom differ). Bought back in this morning, seeing the sp perking up and reckon the bear run over. Actually, volumes today as recently have been pretty low. So it won't take much for the price to run back up. So what will happen when there is real news such as the actual product launch and availability in bonsai?

See Evolution have a BUY recommendation dated 24th May. Shows losses of 21p a share this year and 9.9p next. No detail but good to see their recommendation as it would appear to confirm that they are on track to their launch.

Eric

Eric,

Great minds think alike..... or Small minds run in small circles! (also hold asc and seo) lol

Good to see Evo have a buy recommendation out, also a good write up in shares yesterday apparently.

Morgan Stanely has increased it stake from 4.18% - 6.02% in recent months along with Goldman Sachs Securities, NewSmith UK Hedge Master Fund Ltd and Cane Master Fund Limited acquiring around 4% (All bought above current prices), which always provides some confidence.

Daws

daws: belatedly looked at Shares and BGT are Play of the Week. Good write-up that gives useful info. Quick summary:
- recounts things that could go wrong: technical problems delaying launch; parents don't like the look or think games too expensive at 17 on top of 50 console price;entry problems into US/Europe; impact of competition shortening product life. Nothing there to worry.
- team's terrific track record with Eidos
- easy to use with few buttons and infra-red link to DVD
- games only cost 150K to develop; clearly that's where BGT see money being made; 6 games available at launch plus 10 titles per year
- losses in first two years then PE of around 10 in 2007 then ballistic profits until a 'buble bursts' due to comeptition or boredom.

Really helpful piece written with an element of caution. Only looking for sp of 150p in under a year. Funds raised at 150p so institutions will be looking for more. As a Grandad, I'll be buying one and reckon this will really fire the imaginations of parents and be a must for Play Schools.

Eric

Have updated the header with previous post.

Is there a possible link between Bright Things and Zoo Digital? I see that the development costs per game are going to be of the order of 150K. On the understanding that these are fully interactive dvd set-top game disks I was wondering how they are going to be developed so cheaply; thats where ZooTechs DVD-Extra Studio authoring software came to mind. Also Matthew Timms from Bright Things sat on the panel at the recent Milia 2005 conference alongside ZooTechs CTO Stuart Green, together with other DVD-Extra Alliance members OUAT Entertainment and ScreenLife. I also understand that BBC Worldwide have a team of people helping Bright Things with development of their games; again, BBC WW were one of the early-adopters of ZooTechs DVD-Extra technology. Am I adding 2+2 and making 5?

Zombie,

My take on things is that locolabs and interform are designing the bubble and as of yet no company has been appointed to develop the games.
Original plans were for bright things to develop the games in-house and other firms to come in at a later date to make games in return for a royalty fee, not sure if this is still the case though.
The link with zoo digital does seem plausable though, along with bbc ww etc. Will have a peak at zoo digital, have to admit to having it on my watchlist for some months now, but never really given it a serious glance.

Daws

http://www.inter4m.com/

http://www.locolabs.com/

Thanks Daws. I can understand the hardware side of things (ie. the Bubble) being developed by locolabs and interform, however at the end of the day the dvd-player is what actually runs the program ie. interprets what is on the games disk. As far as I'm aware (and this is what Zoo is constantly stating), DVD-Extra (from ZooTech) is the only authoring tool designed specifically for interactive dvd - more specifically for the "cost-efficient" production of interactive dvd. By licensing DVD-Extra to third-party developers they let the other companies do their own authoring of games, film bonus features, etc. in return for a license fee and royalties on each disk produced. So I guess it could be a possibility that BGT (in conjunction with BBC WW) might be using DVD-Extra to create the games - they've got to be using an authoring package of some sort after all, and at 150K dev. cost per game it smells strongly of DVD-Extra rather than one of the 'ordinary' authoring packages like Sonic Scenarist (which is a linear program rather than an interactivity program).

I guess we'll just have to wait & see.

Zombie, good post. It would make sense that bgt would be using zootech, especially as they specifically design interactive dvds etc. Like you say though it gonna be a case of just waiting and watching. If the bubble is due to be realesed during the summer, surely the games must be at a advanced stage of some sort - so time will tell. Will keep a eye on zoo in the meantime.

Good dialogue. BBC guys have been working at BGT since last July and the games must be in testing now if they are to be launched this summer. A Bubble is no good without the game! Year ended 31st March so you would expect prelims in June so hopefully some news in the next month. Doesn't appear to be a website - presumably everyone has their heads down in development so we may need to be patient for a while. Evolution have a BUY recommendation but don't appear to have any research on their own site. Been following ZOO myself: made a brief foray; they apepar to be back to an attractive price for buying in.

Eric

Eric - http://www.brightthings.com/

Thanks, dawsinho. Useful source for past news which is essentially the RNS's ovr the alst year. Nothing since Janaury which is the frustrating bit but understandable.

Picture of the bubble:

http://uk.geocities.com/mdwalpole/images/bubble.gif

Credit has to go to mwalpole from advfn for finding it.

Looking good, progress has been made on a number of fronts. Have a better timescale in mind now also.

Bright Things plc
29 June 2005


BRIGHT THINGS PLC

('Bright Things' or the 'Company')

29 June 2005
Preliminary Results

Bright Things PLC, the developer of an educational games console, Bubble, and
associated software for the pre-school market today announced Preliminary
results:
Business Highlights:

Development of games console, 'Bubble' nearing completion - expected to
be available in stores in the UK and Eire in the autumn

Content agreements signed with rights holders to create titles based on
characters including Noddy, Balamory, Postman Pat, Bob the Builder and the
Teletubbies

Six games expected to be available at launch date with a further six
currently under development

UK and Eire distribution agreement in place with Bandai

Progress being made with distribution in Continental Europe and the US

Expenditure in line with expectations

Share placing in March 2005 raised 6 million to secure future
development costs

Acquisition of PushPlay strengthens Bright Things' position with regards
to patent applications and IP rights

Dominic Wheatley, CEO, Bright Things, said:

'This has been an incredibly busy year for Bright Things. We have created the
products in line with the timeframe and investment cost expected. The initial
response within the industry to Bubble and associated software based upon
characters including Bob the Builder, Teletubbies, Noddy and Postman Pat, has
been extremely positive. We are pleased to have the distribution agreement with
Bandai in place for the UK and Eire and are progressing opportunities for
distribution in Europe and the US.

'In the coming months we look forward to the retail launch of Bubble in the UK
and Eire. In addition, our recent acquisition of PushPlay gives Bright Things
the opportunity to develop an enhanced product range and to plan for second
generation products.'


For further information please contact:

Bright Things PLC 0870 351 7770
Dominic Wheatley, CEO
Ady Moores, CFO
Matthew Tims, Publishing Director

Giles Croot / Mark Antelme, Brunswick 020 7404 5959


Chairman's statement

When I wrote to you at the time of our half year report in December 2004, I set
out the progress we had made on a number of fronts. This included the
considerable effort put into the creation of both the hardware unit (the games
console) and the interactive software to accompany it. Today I am pleased to
provide further details of your company's development.

The Hardware
We now have a name for the product - Bubble. After a successful pilot build of
150 Bubbles at the factory in China in May, we are now in main production. The
pilot build has enabled us to refine the product and I am pleased to report that
the firmware is working well and will shortly be finalised. Meanwhile work
continues towards our goal of shrinking the electronics to ever smaller and
cheaper components.

A key element of the quality control work undertaken was on DVD compatability.
We have now tested Bubble's compatability on the majority of DVD makes, and this
work continues to ensure even higher compatability thresholds can be achieved.

We expect Bubble to be in stores in the Autumn.

The Software
Our plan was to create six games initially to accompany the launch of the
hardware, with more to follow around Christmas and the New Year. So far we have
finalised: Balamory, Teletubbies, Tweenies and Fimbles. Noddy and Thomas (the
Tank Engine) and Friends were started shortly after the first four and are
expected to be finished in the next few weeks.

TV rights
We have further strengthened our catalogue of children's television show rights
with the agreement with HIT Entertainment. We have also agreed terms for several
shows from other TV companies and are now conducting contract discussions. We
are working towards a portfolio of approximately 20 titles, 10 of which will be
available as games by the first quarter next year and the rest by Christmas
2006. We plan to build on the consumer experience of the launch titles to
maximise the game play experience for our customers.

Marketing
All packaging, catalogues, software packs, manuals and materials are now
complete. The marketing campaign has been drawn up for the Autumn, including PR
and TV advertising. A Bubble magazine has been created which will be bundled
with every box and we have a series of trade press advertisements slated for the
selling season.

Distribution and Bandai
Bandai UK will act as our sole distributor in the UK and Eire. We have presented
Bubble to key retail buyers over the last few months and we have all been
encouraged by the positive reaction we have received. At this stage we are not
proposing to raise guidance on likely unit sales, but will continue to monitor
the position as we move towards launch.

We are also in discussions with potential European and American distributors
with the aim of expanding sales next year. The launch in the UK will help us
hone the product offering both in terms of the hardware and the software, and
the cost reduction efforts will pay dividends when we go to higher volume
manufacturing.

Acquisition of PushPlay
We have recently completed the acquisition of PushPlay Interactive LLC. PushPlay
is a US based company which was formed to design and licence a games console
product, including methods capable of delivering interactive DVD content through
a remote device. Given the similarities of our business aims and the advanced
development stage of Bubble, we both concluded that our businesses would offer a
stronger, broader competitive offering if we worked together.

The acquisition of PushPlay gives us a team with their own strong relationships
in the US market. Looking ahead, we believe that the IP of the PushPlay team has
potential to be useful for new product development, based on the technology,
including second iterations of Bubble. Furthermore, Push Play has identified
other commercial uses of the technology that may open new revenue streams to
Bright Things.

People
The original plans have been met and the team at Bright Things have been
impressive. I would like to thank not only our employees but also the many
contractors who have been so supportive.

The developers had the difficult task of creating these games alongside the
development of the actual hardware and firmware, and they have my considerable
admiration for their achievements. I would like to thank Louise Merlin our head
producer and Dominique Colonna-Cesari, Gigi Misra and Christine Webb for their
excellent production work. They all came to us from the BBC and, like Shamsul
Rosunally and Nick Lowe, have been invaluable members of the team.

We are indebted to our friends at Third Butcher who have been so professional in
putting the marketing plans together.

I warmly welcome the two founders of Push Play, Art and Craig Gravina. Their
engineering experience and the research they have done in the area of
interactive DVD will hopefully prove an invaluable asset to Bright Things.

Outlook
I am pleased with the progress that the company has made and we are now
approaching a most interesting period. Whilst the pre-school market is
competitive, we believe we have created a first class product using much loved
childrens' characters. With UK distribution in place for the Christmas period
and with progress being made in other territories, we remain confident about the
future.

We look forward to updating the market further in due course.

Ian Livingstone
Chairman
28 June 2005

Operational and financial review

Bright Things Plc was incorporated on 8 March 2004. On 16 April 2004 the entire
share capital of Bright Entertainment Limited (formerly Bright Things Limited)
was acquired by Bright Things Plc. The consideration comprised shares in Bright
Things Plc which were issued to the shareholders of Bright Entertainment Limited
on a share for share exchange basis.

Bright Things Plc placed 5,000,000 new ordinary shares at a price of 90 pence
per share and was admitted to trading on AIM on 30 April 2004. The company
raised 3,957,000 net of costs from this issue of ordinary shares.

The shareholders of Bright Things Plc after the share for share exchange and the
placing of new ordinary shares comprised both the controlling management
shareholders, new institutional and private shareholders, and ex-Bright
Entertainment Limited shareholders.

Bright Things plc took advantage of the merger accounting relief provisions
under s131 Companies Act 1985 when it issued equity shares on a share for share
basis to acquire a 100% interest in Bright Entertainment Limited.

Merger accounting has been applied and the effect that this has on the
consolidated accounts is as follows:

(a) the consolidated results include those of the trading company Bright
Entertainment Limited for the fifteen month period to 31 March 2005;

(b) a merger reserve with a deficit of 858,000 is created being the
difference between the cost of the investment in Bright Entertainment Limited
(as shown in Bright Things Plc's balance sheet of 1,000,000) and the nominal
value of the share capital and share premium as shown in Bright Entertainment
Limited's balance sheet of 142,000.

Bright Things Plc entered into an agreement with BBC Worldwide Limited on 7 May
2004. This agreement included licensing rights to seven children's properties
and the secondment of a dedicated software development management team from BBC
Worldwide's award winning multi-media business. Part of the consideration
payable on this agreement was settled by the issue of 333,333 ordinary shares at
90 pence each to BBC Worldwide Limited on 14 May 2004.

In March 2005 an option holder exercised an option over 350,945 shares at 90
pence per share. These ordinary shares commenced trading on AIM on 9 March 2005.

Bright Things Plc placed 4,000,000 new ordinary shares at a price of 1.50 per
share. The shares were admitted to trading on AIM on 29 March 2005. The company
raised 5,737,000 net of costs from this issue of ordinary shares.

Results for operations

The group made an operating loss of 3,576,000 (2003 - 98,000)

Research and development and administrative expenses relate to the fifteen
months ended 31 March 2005; and these are the main components of the loss on
ordinary activities during the period.

Key figures:

Period from Year ended
1 January 2004 31 December
to
31 March 2005 2003
,000 ,000

Research and Development 2,266 26
----------- -----------

Other administrative expenses 1,310 72
----------- -----------

Net assets/(liabilities) 6,810 (120)
----------- -----------

Increase/(decrease) in cash 6,988 (19)
----------- -----------

Basic and diluted loss per share (25.1)p (1.0)p
=========== ===========

Research and Development

All research and development expenditure has been charged to the profit and loss
account as incurred. This includes all hardware development expenditure,
software development expenditure on individual titles and advance royalties paid
under licensing arrangements.

Hardware, 782,000

Hardware development is taking place using specialised engineering firms
primarily based in California, USA.

Software, 756,000

All products are developed through outsource contracts with third party
developers. As part of the BBC Worldwide contract, six members of staff from BBC
Worldwide Limited were seconded to the company to work on the development of the
software, this team forms the internal management for all outsource contracts.

Licensing expenditure, 728,000

Licensing expenditure includes payments made to acquire the rights to licensed
properties and to develop interactive DVD games which work on our hardware
platform for commercial exploitation. Licensing expenditure includes 148,000
relating to advances paid which are recoupable against future royalties payable.
Licensing expenditure also includes 300,000 which was settled by the issue of
333,333 new ordinary shares.

Licence fees payable to organisations for use of their Intellectual Property
over a number of years are charged to the profit and loss account on the basis
of actual product sales. Management relies on forecasts of sales to determine
the relevant amortisation rate of the licence fee. Management regularly reviews
the carrying value of such licences.

Due to the uncertainty of not having any actual sales data to compare against
forecasts, management have taken the decision to amortise all licence fee
expenditure during the current period.

Administrative expenses

Other administrative costs comprise all the costs of running Bright Thing's
operating and corporate functions. This includes the staff, contractors and
agencies together with associated costs employed in sales, marketing, PR,
design, project management, production, IT, quality assurance, finance, legal
and licensing. Total administration costs of 1,310,000 were incurred during the
period.

The company seeks to outsource as many administrative overheads as possible.
External agencies and contractors have been used to assist in sales, marketing
and PR roles.

The company opened offices in London and Palo Alto, California, USA during the
period.

The board continues to monitor the organisation's general overhead. The board
constantly seeks internal efficiencies as appropriate to the growth phase of the
business.

Taxation

No tax charge arises on the profit for the financial year. At 31 March 2005 the
Group has approximately 3.6 million of losses available to carry forward to set
against future taxable profits, subject to agreement with the Inland Revenue.
Earnings per share

Basic loss per share of 25.1p (2003 loss of 1.0p) has increased due to the
scaling up of the group's research and development activities.

Working Capital

The Group's operational cash position has been strengthened by the placing in
March 2005. At 31 March 2005, the Group had cash of 6,991,000 (2003 3,000).
The Group has no debt. At the end of the financial year the group had net
current assets of 6,732,000 (2003 net current liabilities 130,000).

The increase in Net Assets to 6,810,000 (2003 net liabilities 120,000) is
largely due to the increase in cash resulting from the issue of new shares from
the placing of ordinary shares in April 2004 and March 2005.

Financial Instruments

During the period, the Group's financial instruments, comprised cash and various
items such as trade creditors that arise directly from operations. The main
purpose of these financial instruments is to finance the Group's operations.
After the period end the Group has entered into derivative transactions in the
form of foreign currency contracts in order to manage the currency risk arising
from the Group's operations. The Group's policy is, and was throughout the
period under review, not to trade in financial instruments. The main risk
arising from the Group's financial instruments are liquidity risk and foreign
currency risk. The Board reviews and agrees policies for managing each of these
risks on a regular basis.

Liquidity risk

The Group continually monitors the operational working capital requirements of
the business. In particular the point where seasonal sales spikes require
fulfilling with shipments by sea from the Far East. The group continues to
assess whether a trade finance line is appropriate taking into account the
current cash position of the company.

Foreign currency risk

At present the Group makes significant payments in US dollars for the
manufacture of finished products and the development of new games. The Group
manages the foreign currency exposure from this through forward contracts. Due
to the significant nature of this risk the Group has entered into US Dollar
forward contracts based on forecast US Dollar requirements up to June 2006.

Adrian Moores
Finance Director

Bright Things Plc

Consolidated profit and loss account for the period ended 31 March 2005

Note Period from Year ended
1 January 2004 to 31 December
31 March 2005 2003
,000 ,000
--------- ----------
Research and Development (2,266) (26)
Other administrative expenses (1,310) (72)
--------- ----------
--------- ----------

Administrative expenses and operating
loss (3,576) (98)

Interest receivable 74 -
--------- ----------
========= ==========
Loss on ordinary activities before and
after taxation (3,502) (98)
and retained profit
========= ==========

Loss per share
Basic and diluted 2 (25.1)p (1.0)p
========= ==========

All amounts relate to continuing activities.
All recognised gains and losses are included in the profit and loss account.


Bright Things Plc

Consolidated balance sheet at 31 March 2005

31 March 31 March 31 December 31 December
2005 2005 2003 2003
,000 ,000 ,000 ,000

Fixed assets
Intangible assets 7 9
Tangible assets 71 1
-------- ----------

78 10
Current assets
Debtors 182 -
Cash at bank and in hand 6,991 3
-------- ----------

7,173 3
-------- ----------
Creditors: amounts falling
due (441) (133)
within one year
-------- ----------

Net current
assets/(liabilities) 6,732 (130)
-------- ----------

Total assets less current
liabilities 6,810 (120)
======== ==========


Capital and reserves
Called up share capital 1,968 1,000
Share premium account 9,342 -
Merger reserve (858) (980)
Profit and loss account (3,642) (140)
-------- ----------
Shareholders' funds - equity 6,810 (120)
======== ==========


Bright Things Plc annual report and accounts 2005

Consolidated cash flow statement for the period ended 31 March 2005

Note Period from Period from Year ended Year ended
1 January 2004 to 1 January 2004 to 31 December 31 December
31 March 2005 31 March 2005 2003 2003
,000 ,000 ,000 ,000

Net cash
outflow from
operating 3 (2,578) (18)
activities

Returns on
investments
and
servicing of
finance
Interest
received 74 -
-------- --------

Net cash
inflow from
returns on 74 -
investment
and servicing
of finance

Capital
expenditure
and
financial
investment
Purchase of
tangible
fixed (90) (1)
assets
Purchase of
intangible
fixed assets (428) -
-------- --------
-------- --------
Cash outflow
from capital
expenditure (518) (1)
and financial
investment -------- --------

Cash outflow
before
management (3,022) (19)
of liquid
resources and
financing

Management of
liquid
resources
Increase in
fixed term
deposits (6,250) -
-------- --------

Net cash
outflow from
management of
liquid (6,250) -
resources
(6,250) -

Financing
Net proceeds
from issue of
new share
capital 9,694 -
Exercise of
share options 316 -
-------- --------
Net cash
inflow from
financing 10,010 -
-------- --------
Increase/
(decr
ease) in cash 738 (19)
in the year
======== ========

Notes

1. The announcement set out above does not constitute a full financial statement
of the Company's affairs for the period ended 31 March 2005. The Company's
auditors have reported on the full accounts for the said year and have
accompanied them with an unqualified report. The accounts have yet to be
delivered to the Registrar of Companies. The annual report and accounts will be
posted to shareholders in due course. Copies of the annual report and accounts
will be available for members of the public at the Company's registered office,
7 Pilgrim Street, London, EC4V 6LB. The preliminary statement was approved by
the board on 28 June 2005.

2. Earnings per share

Earnings per share has been calculated using the following:

Earnings Weighted Earnings Weighted
Period from average number Year ended average number
1 January 2004 of shares 31 December of shares
to Period from Year ended Year ended 31
31 March 2005 1 January 2004 2003 December
to 2003
31 March 2005

,000 ,000 ,000 ,000

Basic and
diluted (3,502) 13,964 (98) 10,000
========== ============ ========== ============

Earnings per ordinary share have been calculated using the weighted average
number of shares in issue during the relevant financial periods. The weighted
average number of equity shares in issue, is 13,963,607 (2003 - 10,000,000) and
the earnings, being loss after tax is 3,502,000 (2003 - 98,000).

3. Reconciliation of operating loss to net cash inflow from operating activities

Period from Year ended
1 January 2004 to 31 December
31 March 2005 2003
,000 ,000

Operating loss (3,576) (98)
Amortisation of intangibles 730 -
Depreciation 20 1
Increase in debtors (182) -
Increase in creditors 430 79
------------ ----------

Net cash inflow from operating activities (2,578) (18)
============ ==========

4. Reconciliation of net cash flow to movement in net funds

Period from Year ended
1 January 2004 to 31 December
31 March 2005 2003
,000 ,000

Increase/(decrease) in cash in the period 738 (98)
Cash inflow from increase in liquid
resources 6,250 -

------------ ----------

Movement in net funds during the period 6,988 (19)

Net funds at 1 January 2004 3 22
------------ ----------

Net funds at 31 March 2005 6,991 3
============ ==========



5. Dividend

The directors do not recommend the payment of a dividend in the period (2003
nil).

Ooooops! missed this on Friday... All is looking good and going to plan.
Eric, are you still keen on bgt? This thread is very quiet considering the potential on show.

Daws

Bright Things plc
05 August 2005


and


Bright Things plc
05 August 2005


5 August 2005

BRIGHT THINGS PLC

GRANT OF OPTIONS

The options in this release were approved on 20 July 2005.

Options have been granted to Directors of the Company over a total of 75,000
Ordinary Shares of 10p each. They are exercisable at a price of 1.495p per
share, representing the valuation of the shares at the closing middle market
price on 21 July 2005.

Director Options over Shares
Matthew Tims(1) 25,000
Adrian Moores (2) 50,000

(1) The options were granted under a separate contract, one-third exercisable
for a period from 1 to 10 years from the date of grant; one third
exercisable for a period from 2 to 10 years from date of grant; one-third
exercisable for a period from 3 to 10 years from date of grant.

(2) These options are pursuant to the rules of the Bright Things plc EMI Plan
and are exercisable at any time between 3 and 10 years from the date of
grant.

As a result of these grants Messrs Tims and Moores have options over 275,000 and
275,000 Ordinary Shares of 0.10p each.

In addition a further 440,000 options to purchase Ordinary Shares of 10p each in
the Company were granted to Employees and Contractors as part of their incentive
package for performing services to the company, exercisable at a price of
1.495p per share, representing the valuation of the shares at the closing
middle market price on 21 July 2005. Options were granted to Employees pursuant
to the rules of the Bright Things plc EMI Plan and are exercisable at any time
between 3 and 10 years from date of grant. Options were granted to Contractors
under separate contracts and are exercisable over time periods between 1 and 10
years from date of grant.

ENDS

For further information please contact:

Giles Croot / Mark Antelme, Brunswick 020 7404 5959







5 August 2005

BRIGHT THINGS PLC

('Bright Things' or the 'Company')

First Shipment of Bubble

Bright Things, the developer of an educational games console, Bubble, and
associated software for the pre-school market, is pleased to announce the first
shipment of Bubble units from its manufacturing base in China.

Each Bubble is bundled with either a Teletubbies or Balamory game. Additional
games, featuring the Tweenies and the Fimbles will be available later in August.
Further games featuring Noddy and Thomas and Friends will be available in
October reflecting the later starts on these projects.

A national Television advertising campaign to promote Bubble will begin at the
end of August.

Commenting on today's news Dominic Wheatley, CEO Bright Things said:

'We are delighted that the first shipment of Bubble will shortly be arriving in
the UK for distribution to retailers. Over the coming months we will be building
the reputation of Bubble, developing games and building a firm foundation for
our business.'

Commenting on today's news Julian Boyers, Sales Director Bandai UK Ltd said:

'Were very pleased that Bubble will shortly be arriving into the UK and look
forward to the immediate launch of this product into retail.'

For further information please contact:

Bright Things PLC 0870 351 7770
Dominic Wheatley, CEO
Ady Moores, CFO
Matthew Tims, Publishing Director
Giles Croot / Mark Antelme, Brunswick 020 7404 5959



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



| Register | Our Services | About MoneyAM | Terms and Conditions | Privacy Policy | Investment Warning | Content Standards | Corporate Solutions | Advertise With Us |
2005 MoneyAM

Hi Daws - I'm still out here. Thanks for your work posting updates. Must admit that there was so little activity on the board that I've been keeping an eye on some other sites BBs. Was just about to post the RNS but you beat me to it. All is looking promising with everything on schedule and I was particularly impressed by the list of outlets who will be stocking the Bubble.

For anyone new to this board this press release from late July gives a good summary of what the Bubble is all about:

- Fun and learning for preschoolers -

Bubble is a unique and brand new DVD games console that transports pre-school children into the actual world of their favourite TV characters, allowing them to interact, play and learn directly with familiar faces in their imaginary worlds.

Bubble is a wireless unit that works with a household DVD player and TV to create an edutainment centre for the home. Using state-of-the-art, video pre-programming, Bubble takes character interaction a leap forward enabling children for the first time to take an active role in how their imaginary adventures unfold.

To see Bubble in action, come and join us for a demonstration Monday, 18th July at National Magazine House. Further details are available at the end of the release.

There are six launch DVD titles including leading BBC childrens programmes Teletubbies, Tweenies, Fimbles and Balamory, along with two other much-loved TV programmes Noddy from Chorion and HIT Entertainments Thomas & Friends. Each DVD title has a set of unique games that sit naturally within the narrative of the story and are specially designed to compliment the style and tone of the individual programme whether it be Fimbles or Noddy.

Rosie Bayles from Bandai comments: Bubble is totally unique as it lets pre-schoolers enter the actual world of TV characters. So now, rather than just watching the likes of Noddy, Thomas, Tinkie Winkie and Milo, children can actually play and learn with their favourite characters. For example, the Teletubbies can be put to bed at the touch of a button, you can colour in with the stars from Balamory and make music with the Tweenies.

Featuring easy to use lighted buttons, a touchpad and audio prompts, Bubble provides fun feedback to the child helping to improve a key range of recognised pre-school skills such as Numeracy, Literacy, Personal & Social Development, Music Skills, Physical Development, Creative Development and Knowledge and Understanding of the world.

Each title comes with its own interactive activity book and game cartridge so that play can be saved at any point and revisited later on. Bubble can also be used as a portable stand-alone console allowing away play (for example in the car) using the smart cartridge and book.

The Bubble console which comes with one DVD game is priced around 60. Additional DVD games, priced around 17 each.

- ends -

Notes to Editors
* Made in China, Bubble and Bright Things and Bright Things 2005. Patents pending. All rights reserved.
* Distributed by Bandai UK Ltd. a subsidiary of the third largest toy company in the world, Bandai Co. Ltd.
* The Bubble console comes with interactive book, DVD game, game cartridge and storage case as well as set-up book and set up disc
* Bubble works with most major brand and over 1000 different types of DVD players. For more information visit www.worldofbubble.com
* Bubble console requires 4 C batteries (1.5v C size, LR-14, UM-2)
* Bubble will be available from August 2005 from most major national toy retailers including: Woolworths, Argos, Toys R Us, Mothercare, Boots, Early Learning Centre, Harrods as well as selected independent toy retailers, For more information on stockists please call Bubble customer line on (T) 01489 790 944
* Any Bubble consumer product questions or queries can be directed to customerservice@bandai.co.uk

For further information or photography please contact the Bubble Press Office on (T) 020 7684 6969 or (e) bandai@cowpr.com



I've got a 3 year old daughter and she loves almost all the characters listed on here. They really hook in the kids these days. You've got CBeebies on satellite, cable and Freeview which runs from 6am-7pm and plays pretty much a continuous loop of these characters. In my day it was Sesame St for a couple of hours in the morning and then 15 minutes of Rainbow or Fingermouse at lunchtime.

You've also got all the merchandising with Teletubbies, Fimbles etc on party plates, cuddly toys, you name it there's something with them on which just reinforces the kids' love for them.

And then you've got the parents who don't think twice about treating the TV as a babysitter so they can get on with things in these increasingly manic lives we lead.

There's also a sense of giving the kids a headstart. With so much competition for even nursery places let alone schools parents are buying more of the "educational" and "culture" toys as shown by the advent of Mozart for babies CDs etc - now you would never have got those in my day.

Combine all of these; the kids' love of the characters with the parents placating their guilt trips of sticking them in front of the TV with the knowledge that it's educational and these are on to a winner. If the product comes close to what I think it's capable of we should be looking at impressive sales. Let's hope the adverts at the end of this month reflect our expectations.

The share price has been making a nice steady increase in recent months unlike the too vertical shift earlier in the year. I don't think this is on many peoples radars just yet but once the adverts start hitting and the press coverage increases we should quite quickly make up the previous highs of 2+ which would be a 25% increase in a matter of weeks. After that who knows...

All my own opinion DYOR etc etc

Cheers

SH

Seamus,

Good summary. Good to see your still around, was starting to think i was the lone shareholder lol. Must say i feel very confident in this companys ability to deliver what it promises and with all the promotion this should be getting from now up until christmas... i think we'll be making a a bit more than 25%. The chart looks sexy, sustained news flow over the next 6 months, everything is now in place!

Daws

That's my hope Daws. 25% prediction was just for the next 2-3 weeks as this starts hitting the shops and we break through 2.

Have to say that this is great timing coming out just before the schools go back and education is on the minds of parents as they're out shopping for older bothers/sisters.

It also means that everything should be in place for Christmas which shops of this size will have already started stocking up for. The last thing you want is a hurried launch and delays in getting stock to the shops in the actual run up to Christmas. With this coming out now any teething supply problems should be sorted out in plenty of time and a distribution company with Bandai's experience will know all about this.

Another nice day today, nothing to shout about.. but if we carry on at this rate we'll have our 25% return within a week! lol
Really don't see much downside with this share at the mo, can't wait for the launch :-)

And again today. That's more than 10% in the last week. Last chance for a top up I think before the tv ads and press coverage start to kick in.

I have funds due at the end of week, don't want it to rise to much!

Seamus, well looks like another good day for bgt. Looks like people are getting on board for the run up to the launch etc, expect we'll be testing new high very soon :-)

I might even buy my daughter one with the profits ;-)

LOL buy 2 instead!

haven't noticed any press over the weekend yet. Expect we should be attacking new highs this week. Anybody else into this gem yet? Think me and Seamus are the only holders...!

daws

I went into the Early Learning Centre at the weekend and the only thing they have that vaguely resembles the bubble is more of a traditional games console with only about 5 disney titles of which Winnie the Pooh was the most famous character. I asked the Saturday girl if she knew of a release date for the Bubble but I may as well have been talking Chinese for all she knew :-) Didn't seem to be any management about so I left it at that.

Good investigation work there Seamus, i like. Mostly buys yesterday, the trend is very much our friend for the time being and with news immanent a think we should be achieving new highs soon. Even had a cheeky top up last week! Forget all this talk about the bubble being for kids, it looks great ,might buy myself one..!

It's in Argos:

http://www.argos.co.uk/webapp/wcs/stores/servlet/ProductDisplay?storeId=10001&langId=-1&catalogId=3801&productId=155561

And you can download the first ad here as well as entering a competition to win a Bubble...

http://www.worldofbubble.com/

Cheers

SH

Nice links Seamus. Nice few buys coming in at full price, mm must be short? We've been moving up on low volume for the past month now! Expect to be attacking new highs soon.

Daws

Seem to be building up steam for next push up, some nice buys today.
Earth calling Mr Robson - Eric are you still around these parts lol Should be sat on a pretty profit by now i think!

Daws