Monstermob - the name is enough to put a serious investor off. But you should take this business seriously and the accounts look pretty strong!
Shame really, about the name, given recent superb results. Shares are now at 80p, but given they floated a few months ago at more than double that, had a profit warning and have since consolidated over the last six weeks (initial profiteers out) they are worth a very serious look following the numbers.

There is a market cap of about 20 million and eps came in at the half-way stage of 3.3p. A profit post tax of 827,000 is very encouraging indeed.
Turnover is up 32% and there is 6 million in the bank.

Monstermob markets differentiated and easily accessed mobile phone entertainment
and personalisation services. These include ringtones, java games, colour
wallpapers and videos as well as community chat, competition and gaming
products.

Not exactly thrilling but consider the vast growth lined up:
Monstermob is in the process of rolling
out a subscription based ringtone application on China Mobile, which is the
largest mobile network operator in the world with over 160 million subscribers.

Two small profitable acquisitions in the period should enable yet further expansion, and a bigger one announced today which gives them exposure to another 85 million customers in the US.

The market is beginning to react very positively and I think we could see these shares gain 50% of the lost ground since flotation very rapidly. Could be best for a short term trade of maybe 2-6 months, given longer term competition questions, but for the moment and up to next results, things look very rosy.

Dixon's took options at 165p, while Shares mag should comment on the results tomorrow - they are a fan of the company.

Too much to hope it might be a play of the week?

Chart shows fall after warning consolidation and now a possible (substantial) brakout after results.

are these still worth a punt, have been tracking since positive comments from shares mag a few weeks ago, just keeps rising

RNS Number:4879B
MonsterMob Group PLC
13 April 2006

Date: 13 April 2006

On behalf of: Monstermob Group plc (the 'Company', 'Group' or ' Monstermob')

Under embargo until: 0700hrs


Acquisition of W-Infinity


Monstermob Group plc ("Monstermob" or the "Company") is pleased to announce
today that it has entered into an agreement for the proposed acquisition of
W-Infinity Communications Limited ("W-Infinity") ("W-Infinity Acquisition" or
"Acquisition").


* Monstermob has agreed to acquire W-Infinity, a leading provider of
mobile content services in China - the world's largest mobile telecommunications
market, forecast to grow by 225m additional users by 2008

* Consideration predominantly in new Monstermob ordinary shares and loan
notes and is expected to be USD 81.5 million payable in three stages

* A leading provincial off-portal business in China

* Highly complementary to Group's existing Chinese operations

* Unaudited EBITDA for 2005 expected to be USD 6.5m

* Directors expect the acquisition to be earnings enhancing in its first
full year

* Completes Monstermob's acquisitions in China - Monstermob China now
poised for strong organic growth

Monstermob is pleased to announce today that it has entered into an agreement
for the proposed acquisition of W-Infinity.


As previously announced, Monstermob has been pursuing a number of significant
strategic acquisitions and our focus had recently narrowed to one in China and
another in a new territory. At the date of the announcement of our preliminary
results, we believed we would be unable to consummate these transactions,
despite believing them to be in the best interests of the Group. However,
following our statement of our focus on organic growth in that announcement, the
principals of W-Infinity, the Chinese business which we had been contemplating
acquiring, made a new proposal to the Board. We are delighted to have now
reached agreement to consummate this transaction.


W-Infinity will complete our acquisitions in China and significantly enhances
our ability to grow organically due to its strong strategic and highly
complementary fit with our existing operations, Atop and M Dream. We have
continued to develop our management infrastructure in China and now employ three
former senior PwC professionals in our China head office. Following the recent
addition of Yongqiang Qian (Atop's founder, Chairman and CEO) to the Board as
Managing Director of Monstermob China, we are confident in our ability to drive
attractive returns from this key region.



In the foreseeable future, Monstermob intends not to actively seek any new
acquisitions which are significant in the context of the overall group. Our
near term focus remains on integrating and synergising our existing acquisitions
to drive organic expansion throughout our territories as well as on the
development of compelling next generation mobile services.



W-Infinity was founded in July 2002 by Jack Deng, its CEO and largest
shareholder. W-Infinity is based in Beijing but has a very strong regional
presence, operating in 27 of China's 31 provinces from six offices. W-Infinity
markets off-portal and sells the majority of its products directly to consumers
via SMS (circa 70 per cent. of revenues) and sells the typical range of mobile
content products (ringtones, wallpapers, games and text based products).



From a start up, the business has grown to over 170 employees (as at 20 March
2006) and, in the year ended 31 December 2005 recorded unaudited net revenues of
USD 12.4 million and EBITDA of USD 6.5 million. Unaudited net assets as at 31
December 2005 were USD 7.7 million.



The Directors expect the Acquisition to be accretive to earnings per share of
the Group in the first full year following completion*. The W-Infinity
Acquisition is expected to complete by the end of May 2006. Full details of the
consideration and deal structure are given below.



Commenting, Martin Higginson, Chief Executive of Monstermob said:


"Monstermob is now a truly global business with leading positions in many of the
world's largest and fastest growing mobile phone markets. We are delighted to be
acquiring W-Infinity which complements our existing Chinese operations. Our
enlarged business will have a strong position in the world's largest mobile
market. The combination of Atop, M Dream and W-Infinity, three highly
profitable companies which have demonstrated enviable growth rates, will give
the Group a very strong platform from which to capitalise profitably on the
growth opportunities in China."



Yongqiang Qian, Managing Director of Monstermob China said:



"We are very pleased to welcome Jack Deng and W-Infinity to Monstermob China.
Jack and W-Infinity bring deep carrier relationships throughout the provinces of
China and has a highly complementary off-portal business model to our existing
businesses, Atop and M Dream. I believe that this will allow our China
businesses to drive substantial synergies and strong organic growth over the
medium term. Monstermob China will have over 400 employees and a leading
presence across both 2G and 2.5G services. Our China management team brings
some of the strongest expertise in the region and we are confident that
Monstermob China is positioned to be a long term leader in the Chinese mobile
entertainment market."



Enquiries:

Monstermob Group plc - Martin Higginson, CEO 01524 586 708

Investec Investment Banking - Chris Godsmark / Erik Anderson 020 7597 4000

Redleaf Communications - Wendy Timmons / Emma Kane 020 7955 1410



Notes to Editors



Further information on Monstermob can be found on the Company's corporate
website: www.monstermobgroup.plc.uk



* This statement is not a profit forecast and should not be interpreted to
mean that the earnings per share in the financial year ending 31 December 2007
or any subsequent year will necessarily match or be greater than for any
preceding financial period.




Acquisition of W-Infinity



Monstermob Group plc ("Monstermob" or the "Company") is pleased to announce
today that it has entered into an agreement for the proposed acquisition of
W-Infinity Communications Limited ("W-Infinity") ("W-Infinity Acquisition" or "
Acquisition").



As previously announced, Monstermob has been pursuing a number of significant
strategic acquisitions and our focus has recently narrowed to one in China and
another in a new territory. At the date of the announcement of our preliminary
results, we believed we would be unable to consummate these transactions,
despite believing them to be in the best interests of the Group. However,
following our statement of our focus on organic growth in that announcement, the
principals of W-Infinity, the Chinese business which we had been contemplating
acquiring, made a new proposal to the Board. We are delighted to have now been
able to have reached an agreement to consummate this transaction.



The W-Infinity acquisition will complete our acquisitions in China and
significantly enhances our ability to grow organically due to its strong
strategic and highly complementary fit with our existing operations, Atop and M
Dream. We have continued to develop our management infrastructure in China and
now employ three former senior PwC professionals in our China head office.
Following the recent addition of Yongqiang Qian (Atop's founder, Chairman and
CEO) to the Board as Managing Director of Monstermob China, we are confident in
our ability to drive highly attractive returns from this key region.



In the foreseeable future, Monstermob intends not to actively seek any new
acquisitions which are significant in the context of the overall Group. Our
near term focus remains on integrating and synergising our existing acquisitions
to drive organic expansion throughout our territories as well as on the
development of compelling next generation mobile services.



It is our continuing view that the mobile content market offers attractive
growth prospects on a global basis. We believe that the mobile phone will become
one of the most important media channels globally in coming years. Forecasts
suggest that almost 3.96 billion mobile phones will be in circulation globally
by 2011 compared to circa 2 billion at the end of 2005 (Source: Portio Research,
January 2006). In the Board's view, increasing handset penetration, coupled
with the advancement of handset and network technology, will drive the growth of
the mobile entertainment market.



In order to position Monstermob to benefit from this anticipated market growth,
the Board has sought to build a global group, with leading positions in a number
of diversified markets, in many cases at differing stages of evolution. The
Board has focused on markets with large populations (which in a number of cases
exhibit low handset penetration, such as China) where it believes the growth
prospects to be attractive on a long term basis and where leading positions can
be acquired on acceptable terms. To this end, acquisitions have already been
made in the USA, Philippines, Malaysia and most recently China and Russia. In
addition, joint ventures have been established in a number of other territories
such as Indonesia, Bangladesh and Vietnam.



Background to the Chinese market



We believe that the Chinese market offers very attractive growth prospects:
China is the world's largest mobile market with approximately 370 million users
(circa 30 per cent. penetration). This is forecast to grow to some 650 million
users by 2008, representing penetration of some 50 per cent. (Source: AFX News
Ltd and Portio Research, January 2006). Monstermob has already completed two
acquisitions in China - Atop and M Dream. Atop, our first acquisition in China
(completed in September 2005), is a leading provider on China Mobile's WAP
Platform and M Dream, our second acquisition (completed in January 2006) is a
leading mobile game developer and provider on China Mobile's games portal.



The Board believes that the W-Infinity Acquisition will not only give the
Company greater exposure to the fast growing Chinese mobile market but that
there are strong potential synergies between the Company's Chinese businesses.
We believe that synergies can be exploited between the Company's Chinese
businesses through sharing of content and cross promotion of products (on- and
off-portal). For example, all of the Company's Chinese businesses will now have
access to M Dream's proprietary games content.



W-Infinity



W-Infinity was founded in July 2002 by Jack Deng, its CEO and largest
shareholder. W-Infinity is based in Beijing but has a very strong regional
presence, operating in 27 of China's 31 provinces from six offices.



From a start up, the business has grown to over 170 employees (as at 20 March
2006) and, in the year ended 31 December 2005 recorded unaudited net revenues of
USD 12.4 million and EBITDA of USD 6.5 million. Unaudited net assets as at 31
December 2005 were USD 7.7 million.



W-Infinity markets and sells the majority of its products directly to consumers
via SMS (circa 70 per cent. of revenues) and sells the typical range of mobile
content products (ringtones, wallpapers, games and text based products).



After SMS, Ring Back Tones are the next most important revenue source for
W-Infinity, at around 15 per cent. of revenues. Newer services delivered
through more advanced handsets, such as MMS and WAP services, are currently a
small part of W-Infinity's revenues (circa 15 per cent. on a combined basis).
These services represent areas of potential growth for W-Infinity, complementing
its strong SMS business and taking advantage of increasing penetration of more
sophisticated handsets.



The consideration payable pursuant to the W-Infinity Acquisition is expected to
be approximately USD 81.5 million (and is capped at USD 130 million) and will be
paid as follows:



* Tranche 1 - on or shortly after the closing date of the W-Infinity
Acquisition, expected to be by the end of May 2006, USD 8 million will be paid
in cash and USD 24 million in new ordinary shares to be issued at a price of
350p per share.

* Tranche 2 - shortly after completion of the audit for the year ended
31 December 2005, (which is expected to take place in May 2006) a further
payment will be made ('Tranche 2') so that Tranche 1 plus Tranche 2 will be
equal to 7 times audited EBITDA of W-Infinity for the year ended 31 December
2005. Tranche 2 will consist entirely of new ordinary shares. The new ordinary
shares will be issued at a price equal to the average middle market price for
the 60 trading days prior to issue.

* Tranche 3 - shortly after completion of the audit for the year ended
31 December 2006, a payment will be made equal to 3 times the audited EBITDA.
This is conditional on the EBITDA being not less than USD 12 million. Tranche 3
will consist of cash and Loan Notes equating to USD 15 million and the balance
in new ordinary shares. The new ordinary shares will be issued at a price equal
to the average middle market price for the 60 trading days prior to issue.

Shares issued under Tranche 1 are subject to a restriction on their disposal
except in certain limited circumstances for either 6 or 12 months following
issue and a 12 month orderly market obligation thereafter. Shares issued under
Tranches 2 and 3 are subject to a restriction on their disposal except in
certain limited circumstances for 12 months following issue and a 12 month
orderly market obligation thereafter.



Based on EBITDA of USD 6.5 million for 2005 and assuming EBITDA of USD 12.0
million for 2006, the total consideration in new ordinary shares for W-Infinity
would be USD 81.5 million, representing 6.8 times the EBITDA for 2006.



The transaction structure of the W-Infinity Acquisition is set out in the
Appendix to this announcement.



APPENDIX - W-Infinity Transaction Structure



At present, foreign companies cannot own more than 50 per cent. of companies
which hold a licence to operate in the Chinese value-added telecommunications
industry. The transaction structure of the W-Infinity Acquisition is set out
below. This structure is designed to provide substantially all of the benefits
of full ownership whilst complying with this restriction. It is similar to the
structure used by Monstermob in its acquisitions of Atop and M Dream, consistent
with the structure previously used by a number of other foreign companies
investing into the Chinese mobile content sector.



Finebelief Group Ltd is a newly formed legal entity for the purpose of the
W-Infinity Acquisition. Completion of the W-Infinity Acquisition will result in
Finebelief Group Ltd becoming a wholly-owned subsidiary of Monstermob.
Finebelief Group Ltd is the parent company of Beijing Jiaxin Xuntong Technology
Co. Ltd ("Beijing Ltd"), another newly formed legal entity for the purpose of
the W-Infinity Acquisition. On completion of the W-Infinity Acquisition, a
series of agreements will be entered into to ensure that Beijing Ltd acquires
all the key assets of W-Infinity (except its telecommunications licences) and
effectively has substantially all of the benefits of owning W-Infinity, with all
contracts renewable at the option of Beijing Ltd. The key agreements in
relation to this are as follows:



- a 10 year agreement under which Beijing Ltd is appointed as exclusive
provider of technical and operational services to W-Infinity. Under this
agreement, Beijing Ltd may charge W-Infinity for its operational and technical
services, in monthly amounts with no limitation on maximum fees;

- Monstermob nominees will be given full power of attorney over the
share capital of W-Infinity. The directors of W-Infinity following closing will
be Mr. Jack Deng and two Monstermob nominees, namely Niccolo de Masi and Wang
Xiaogang;

- Beijing Ltd will be given an exclusive option to purchase the shares,
to the extent permitted by the laws of the People's Republic of China, of
W-Infinity at any time in the next 10 years (subject to an automatic renewal in
Beijing Ltd's favour with terms solely determined by Beijing Ltd at year ten)
for nominal value;

- Beijing Ltd will hold a legal pledge on the shares of W-Infinity;

- Beijing Ltd will hold legal charges on the assets of W-Infinity
including its receivables to secure payment for its provision of operational and
technical services to W-Infinity; and

- W-Infinity will transfer its key assets, personnel and intellectual
properties to Beijing Ltd, complying with filing procedures as required by the
laws of the People's Republic of China.

END

This new acquisition in China ( where additional user are expected to grow by a quarter of a Billion by 2008) should provide a massive boost to MOB earnings, and we should soon see the SP racing up to 5 and beyond!