02/04-09   -   Press releases

Rambler Media sells mobile value added services business and signs partnership with plastic media

Rambler Media Ltd. ("Rambler" or the "Company"), which operates one of Russia’s most popular internet brands, today announces the sale of its mobile value added services business SMX Communications Ltd. ("SMX Com") to one of Russias leading mobile content provider Plastic Media. In addition to the sale, Plastic Media will operate and provide mobile value added services through a long term partnership with Rambler.

Founded in 2004, SMX Com provides value added services for mobile phone users, generating sales from in-house or third party developed SMS-based products and content such as ring tones, icons, screen savers and games. Revenues are generated from a share of the fixed fees paid by subscribers to their network provider for the download of SMX Com products. In 2008, SMX Com generated in excess of USD 6.0 million revenue from mobile value added services.

The disposal reflects Ramblers strategy to focus on growing its core Russian language internet business, which generates the majority of the Company’s total revenue. At the same time, by signing a long-term partnership with Plastic Media, Rambler will continue to benefit from mobile revenues that will be operated and generated through Plastic Media, therefore improving efficiencies in the development and sale of Rambler mobile content.

Nikita Serguienko, Rambler Medias Chief Financial Officer, commented: "By selling and outsourcing the development of mobile value added services to Plastic Media, Rambler is increasing the efficiency of its business by keeping most of the revenue from mobile services and decreasing its operational costs. In addition, Plastic Medias traffic exceeds SMX Com’s traffic, which leads to lower commissions to mobile operators. For Rambler, this partnership is another step towards ensuring stable growth and profitability for the Company. Plastic Media is a reliable and creative company and we plan to launch new high-quality services through our new partnership".