Two Way and STAR in Mobile TV MOU

TWO WAY TV AUSTRALIA SIGNS PAN-ASIAN LICENSING DEAL WITH STAR FOR DEPLOYMENT OF SIMCAST MOBILE-TO-TV TECHNOLOGY On December 5, last year, Two Way TV Australia Limited (ASX:TTV) signed a Memorandum of Understanding with STAR Group (STAR), Hong Kong for the ground-breaking mobile-to-TV technology called Simcast, which can be used to create a range of exciting interactive TV applications that viewers can respond to using their mobile phones. Now, STAR intends to use the Simcast system for a wide range of interactive applications across its network of 50 channels in eight languages. The system has already been deployed in successful trials in China and India, involving chat and voting applications on the popular music channel “Channel [V]”, and the Hindi entertainment channel “STAR ONE”. Two Way will receive an upfront fee and an ongoing share in the revenue generated by viewers sending in messages from their mobile phones. Two Way will also provide support and maintenance in return for a monthly fee. The deal is for five years. Over time, the deal has the potential to generate multiple revenue streams for the company, from the deployment of multiple applications across multiple countries. Managing Director of Two Way, Mr Jim McKay, said “This deal is a major step forward in Two Way’s strategy of working with the leading broadcasters in the heavily populated markets of Asia. We are very proud to deploy our Simcast technology in partnership with STAR and its powerhouse of entertaining and informative channel brands.” Two Way said the expected revenue from this deal in the current financial year is reflected in Two Way’s existing revenue guidance. Ross Crowley, Senior Vice President of Programming, STAR is handling this project. Two months on, I look forward to seeing a public announcement of the long form contract. Ed - Gerald Brown