LOoking forward to the rest of the week with this puppy.

"not motoring yet" , hope so too, just invested, whats your reckoning for the interims ???

Do these look strong, very positive and mobile content is the sector to be in, SPS and MOB are doing very well!!

Q3 EBITDA UP THREEFOLD



Results for the Nine Months to 30 September 2004





iTouch provides compelling entertainment and information for mobile phone users
instantly, anytime, anywhere.


Unaudited Unaudited


2004 2003 2004 2003

Q3 Q3 % Y on Y 9m 9m % Y on Y


Revenue 22.3m 16.3m 37% 56.1m 42.1m 33%
EBITDA profit/(loss)* 2.5m 0.8m 220% 5.8m (1.1m) N/A
Operating profit/(loss)* 1.3m (0.7m) N/A 2.5m (4.7m) N/A



*Before exceptional items

Financial and Operating Highlights

Strong Q3 revenue up 32% to 22.3m from Q2 2004 (16.9m)

Continued Q3 EBITDA (before exceptionals) growth up 48% to 2.5m from
Q2 2004 (1.7m)

Operating profit (before exceptionals) of 1.3m for Q3

PBT (before exceptionals) for nine months 2.5m

Operating cashflow positive year to date

Integration of Jippii acquisition



Commenting on the results Chairman Ivan Fallon said:



'This very strong set of financial results confirms iTouch's success as a world
leader in the mobile entertainment industry. The Group's direct channel model,
pioneered so successfully by Movilisto in Spain, is gaining significant
momentum, and has been enhanced by the acquisition of Jippii. The transaction
has significantly contributed to the expansion of iTouch's geographical reach
into 25 countries and we look forward to continuing expansion in 2005.'



Enquiries:


iTouch plc Tel: 020 7613 6000

Wayne Pitout, Chief Executive Officer

Michael Le Houx, Finance Director

Lucy Campbell, Head of Investor Relations

Website:
www.itouchplc.com



gcg hudson sandler Tel: 020 7796 4133

Andrew Hayes/Noemie de Andia



A conference call will be held at 9.30am today. Please contact Rebecca Ghent at
gcg hudson sandler on 020 7796 4133 for details.





Chief Executive Statement



iTouch, the leading provider of value added services to mobile phone users,
continues to make significant progress, enhancing its position as the preferred
delivery channel for premium content in Europe. The robust financial health
demonstrated in Q3 and year to date is testimony that the Group has a proven
business model. This is now being successfully rolled out into the new European
territories acquired through the acquisition of Jippii, the Finnish mobile
services provider, in August of this year.



Revenue for the third quarter increased 32% to 22.3m from 16.9m in Q2 while
EBITDA profit rose 48% to 2.5m. The quarter saw yet more positive operating
cashflows, with a cash balance of 13.9m, and also positive earnings per share.



iTouch's strategy is focussed on the roll out of the direct channel model across
25 territories in partnership with 94 network operators accessing over 400m
mobile users. The acquisition of Jippii has helped the Group to achieve
geographic reach and scale with the main countries of focus being Russia and
Switzerland. Other eastern European territories also play an important role in
iTouch's portfolio due to the favourable conditions in the region. In addition,
the Jippii brand complements existing iTouch short code brands and will become
the cornerstone of the future global branding strategy.



Product development, innovation and content relationships are vital to the
success of the model. The Group continues to build and maintain key content
relationships with global media partners and pan-European carriers which,
coupled with iTouch's local market focus and expertise, enables the Group to
successfully execute its focused marketing strategy and enhance its dynamic
profile among the teenage market. iTouch is also developing new channels to
market such as operator and own branded portal communities which will be
available in the Group's countries.



The mobile data industry continues to grow with the Arc Group forecasting global
mobile entertainment services to generate over $27bn in 2008. This exponential
growth, the increased penetration of multi-media handsets and a data savvy youth
generation provide extremely encouraging conditions for the Group and iTouch
continues to reap the benefits.



Group Results

Revenues for Q3 were 22.3m, a 37% increase from 16.3m last year, driven by the
successful launch of the direct channel model into new territories. Jippii
contributed 1.0m revenue in the month since acquisition. EBITDA (before
exceptionals) in Q3 2004 increased to 2.5m, a rise of 220% on Q3 2003, which
was due largely to the direct channel model success. Jippii contributed 0.04m
EBITDA for Q3 2004. The Group has a successful and scalable business model which
management will roll out into the new Jippii territories where conditions are
receptive.



Europe

European revenues increased to 16.7m in Q3, up 37% on Q2. This was driven by
seasonality in the direct channel model, higher IVR sales and the acquisition of
Jippii.



During the period, iTouch signed a global licensing and distribution agreement
with Eurofun Mobile Entertainment and DTR for 'Shark Tale', the latest
Dreamworks production which was released in the UK on 15 October. iTouch
sources all Shark Tale mobile phone content from Eurofun and is distributing it
through the Group's own direct channels in 25 countries including the UK,
Ireland, France, Spain and Russia. Content will include Java adventure and
Trivia games, screensavers and 30 colour wallpapers, polyphonic ring tones, MMS
greetings, video clips and comics. Following the success of Shrek 2 and The
Hulk, 'Shark Tale' is the latest example of iTouch's involvement in the
distribution of high profile entertainment content. As mobile phone handsets
become more advanced, leading media companies are increasingly focusing on
mobile entertainment content to drive further their licensing and distribution
revenue.



During the period, Jippii signed a mobile entertainment solutions agreement with
Siemens Mobile covering 19 European countries. Jippii provides Siemens Mobile
with solutions which enable it to deliver the best mobile entertainment content
to its handset owners. Under this agreement Siemens benefits from Jippii's key
services such as premium billing SMS-network, content aggregation, copyright
management and content delivery and updates. Siemens handset owners can access
mobile content such as monophonic and polyphonic ringtones, black and white
logos, colour wallpapers, Java-games as well as Siemens exclusive content. The
content is available in 19 European countries including the UK, Germany, Spain
and Russia and is accessed via the Siemens-Mobile web-sites, WAP-sites and
embedded JAVA-applications in new Siemens handsets.



The UK voice business, which focuses on key media clients and our brands such as
Clubcall, Weathercall, Racecall and Teleshare experienced a seasonal increase in
Q3 as the demand for weather information services and sales to media partners,
such as Big Brother voting, peaked in the summer months.



Rest of the World

Revenues in the Rest of the World increased 21% to 5.7m in Q3 from Q2. The
region continues to experience strong growth from the direct channel model
launched during the earlier part of this year. In addition, the model was
launched in New Zealand during Q3.



Other Profit and Loss Items

The Group gross profit was 31.5m for the first nine months of 2004 up 75% from
the equivalent period in 2003. Gross profit percentage increased to 56% (2003:
43%) primarily as a result of the growth in the direct channel model.



Selling expenses in the first nine months of 2004 increased by 173% to 12.6m
(2003: 4.6m) as a result of the launch of the direct channel model across the
world. General administration expenses are consistently below prior year as the
Group maintains a close focus on cost control.



The Group continues to seek new acquisitions and the exceptional cost of 0.2m
relates to aborted acquisition costs. After net interest income of 0.1m (2003:
0.4m), depreciation of 0.9m (2003: 1.5m) and a charge for goodwill
amortisation of 2.4m (2003: 2.2m), the profit on ordinary activities before
tax was 2.4m (2003: loss of 5.7m). Tax for the first nine months was 1.5m
(2003: 1.0m) arising primarily from the profits of Movilisto.



The adjusted profit per share (as calculated in Note 2) was 1.1p (2003: loss of
0.5p). The basic and fully diluted profit per share was 0.2p (2003: loss of
2.0p). Total headcount at 30 September 2003 was 373 including 57 in Jippii
compared to 297 at 31 December 2003.



Corporate Activity

The Group completed the acquisition of Jippii Mobile Entertainment on 31 August
for an initial consideration of 12.0m which was partially satisfied by cash
from the 8.0m investment by Japanese partner, For-Side, undertaken in August.
The Jippii acquisition increases the iTouch footprint to 25 countries with
connectivity to 94 network operators. Since the acquisition, Jippii has
generated revenue of 1.0m and EBITDA of 0.04m during the quarter. The
Directors believe the acquisition of Jippii will enable the Group to build
momentum with the rapidly developing Eastern European market. Initial goodwill
of 8.3m arose from the acquisition, which is being amortised over 10 years.



During the period iTouch signed an important global licensing agreement with
For-Side, a leading Japanese mobile services provider, based in Tokyo and listed
in on JASDAQ. The agreement gives iTouch access to For-Side's wide range of
content and 3G know-how. For-Side also made a strategic investment in iTouch
purchasing 18.25m shares at 29p each which represents 4.5% of the enlarged
share capital.



Outlook

Margins will continue to improve as the revenue mix evolves towards direct
channel model revenues. The Jippii acquisition, together with increased
penetration of multi media handsets, provides the platform for continued growth
in our existing countries and in addition, the Group will also expand into new
countries. Management look forward to up-dating the investment community on the
progress achieved in the fourth quarter and full year results in March 2005.