Tadpole IR Note - June 9, 2004


Further to an RNS dated January 19, 2004 announcing a contract win by
Tadpole's Endeavors Technology subsidiary from a major U.S.
telecommunications company, please be advised that the following update has
been issued today. A related link to MCI's announcement also issued today
appears below for your convenience.

Sincerely

Hugh Paterson
Patcom Media

June 9, 2004

Tadpole Technology plc (LSE:TAD) today announces that the AppExpress
technology of its Endeavors Technology subsidiary has been selected by MCI
to empower a new product of the global communications company to stream
Windows-based software on-demand to US multinationals via its IP network.

###

http://global.mci.com/news/news2.xml?newsid=10850&mode=long〈=en&width=530&langlinks=off

how come the news on Wyse and MCI don`t feature in "recent news" for TAD on
the pricing/chart/comment board??

I did say big Wednesday!
And Thurs and Friday, get up early tomorrow fellars.
you aint seen nothing yet.


Moneylender

Superrod
Re: advfn
Just be happy that grossone still has his short open and is starting to feel uncomfortable every day the price rises.
He's lost 25% in 10 days couldn't happen to a nicer person.

Anyone any comments on todays price movement.

yuff
i would agree with you except for one small detail..............i dont believe the guy is short or long on ANYTHING, never mind tad.

Posted on another BB,by Mike Walk. I share his sentiments and comments.

M


All Tad's PR - as others have commented - has been rather low key. No RNS. But at the same time the share has established a trading range 15-20p.

Why has the PR been so low key? As others have suggested, the news is not really earth shattering but with the Aotodesk Press Releases it confirms:
1. Endeavours software works in the real world.
2. It is of commercial quality
3. Some large corporations are using it. (and saving money by doing so).

Those are absolute essentials as a base for any meaningful and prolonged price increase. No-one honestly could have said that about all Tadpole's products any time in the past 4 years . So real progress has been made.

We know Cartesia makes money: the present news suggests Endeavours is likely to sell in enough volume to do the same.

More importantly, Endeavours is now positioned so that if a MAJOR player uses it as a delivery method for software, others are likely to follow suit.. and very quickly because of the costs and marketing advantages it offers. Autodesk and MCI have proved it does save money.

Now the Express said MCI and Microsoft. 100% correct so far. I believe that Microsoft as a customer would provide the traction Endeavours needs and once announced the customer base will expand rapidly (traction!) and the share price will follow as a series of major contracts should follow Microsoft as sure as night follows day.

I believe the Express has some inside track and is correct. So expect a Microsoft RNS soon... That would be REAL news: not the regurgitation of MCI news that an RNS would have meant if it had been issued (the managemnet said they would not push false news.. remember?).

Then we have the interims. These are key because if Tad win loads of contracts but still will be lossmaking in the future then it's all rather pointless.
The interims should show the company :
1. has 3 to 5 million cash (by my calculations)
2. is now largely cash neutral and starting to generate cash
3. made losses in the first half due to Endeavours but should be profitable in the second and may (probably will) make a profit for the full year. It will generate cash.

These are all the ingredients for a sustained and sustainable price increase. Whilst there will be spikes, the old Tad price history of a sudden rise and then price collapse will hopefully be gone. Why? Because the fundamentals of the business: sales, cash and profits are in place. That's what is new this time. No need of rights issues to fund losses.

So I expect a very bullish interim trading statement from the Chairman: backed by sizeable contract wins in the past and to come.

So a low key PR campaign is deliberate - imo- to manage expectations so the Company can give shareholders a realistic picture of what is likely to hapen in the future. How many Tad Chairmen have been able honestly to do that in the past 5 years? None. And the shareprice - and they - have paid the price.

I think we are sitting of the edge of a breakthrough. All the ingredients are there. They are published in full. Today only a few can recognise that.

When it is patently obvious to the world and his wife what is actually happening is too late to buy: because the price will reflect it. At present it reflects a struggling software company with a loyal band of shareholders - many of whom are sceptical and scarred by the failures of the past.

So watch for a build up to the interims.

(This is all my opinion so treat it accordingly. I may be totally wrong about Microsoft and the interims. My money says I am correct:-)

ML
Its a good post and does make a lot of sense.
Superrod
Agree entirely, this site is definitely more quality without all the children playing.
It is amazing how one poster can provide so much interest.

ML - agree with your post. What a shame some people went on and on about how the MCI announcement would shift this share to the low 30's. Hopefully the Tad management will handle expectations at a more realistic level - if only some BB contributors would do the same. Cheers.

Tad have just been admitted to the Techmark!

M

I think Taddites are in a state of shock today.

Though I can theorize/understand why the price didn't rise as most of us expected/hoped (fairly easy in hindsight). I to am disappointed.

Still, look on the bright side, at least it didn't go down!!!!!!!!

Perhaps the next interim results will show the financial significance of the MCI deal and others!!

Highride.

PS. Isn't it quiet!

ML
That has to be good news.
Institutions will take more note now.

Hi yuff

You are quite right institutions who track the Techmark 100 will now have TAD on their radar screen. So now we can expect tracker funds to be buying or risk deviation.
All good news!

M

Place has opened due to staffware being bought out therefore looks like tad were the next company the fitted the criteria.

Yuff, MoneyLender.
Pardon my ignorance, but where did you find out about TAD's inclusion to the techmark.

Highride

highride
http://www.citytext.com/techmark.html

Highride - or http://www.londonstockexchange.com/techmark/companies/allshare/info.asp?sedol=0870593

Agree with everyone that Tech trackers might just underpin the share price as we approach interims.

Evo pushed th price up to get the necessary Market cap to fulfil Techmark 100 regulations and then move back down.
So their total amount of time supporting the share for which they are house broker amounts to about 2 hours this year, the rest is spent on the own dodgy dealings.

so are we going to see a big drop to let funds etc in ??

Maybe the funds are already in.
Some very fishy deals/trades been going on for the last few weeks!

M