(IMAC) Ingenious Media Active Cap

RNS Number:1864X Ingenious Media Active Capital Ltd 24 May 2007

Ingenious Media Active Capital Limited ("IMAC")

24th May 2007

Acquisition of Two Way Media Limited

Ingenious Media Active Capital Limited ("IMAC") today announced that it has completed an investment of up to #5.34m to acquire and invest in Two Way Media Limited ("Two Way TV"), a UK-based interactive television production company. This marks IMAC's seventh investment since its IPO in April 2006.

Two Way TV has a long history of working on mass participation shows such as 'Test the Nation', 'X-Factor', and 'Big Brother' as a technical partner. In recent years, the company has expanded its own format and production capability, having secured commissions for over 500 hours of programming from ITV, Sky Movies and others, which has focussed on gaming and play-along quiz TV formats.

IMAC's investment will be used to build on Two Way TV's core capabilities by expanding its creative and production teams to develop the next generation of interactive entertainment shows for mainstream broadcast. The company will also be opening a new office in Los Angeles to target the rapidly emerging US market.

Patrick McKenna, Director of IMAC, said:

"We have been very interested in the participation TV space as it has become a permanent feature of the media landscape with broadcasters continuing to seek more innovative ways to enhance their programming and engage audiences through increasingly interactive content. There is massive growth potential in this industry both in the UK and around the World, with particular focus in the US. Two Way TV can bring both skill-based and gaming-based models to bear in this market and IMAC will actively seek synergies between Two Way TV and our other portfolio companies to realise that rich market potential."

Jean de Fougerolles will continue in his current role as CEO, and the company expects to appoint a non-executive Chairman from within Ingenious's network in the coming weeks.

Jean de Fougerolles said:

"I am delighted to be working with Ingenious, a company which has extensive expertise across a number of disciplines within the media sector. Two Way TV has been successful in bringing game shows and gaming models to the TV market and creating unique skill-based shows. I believe there's a real appetite for shows that the audience can genuinely participate in and enjoy and we will be working towards finding additional formats that are both engaging and entertaining."

IMAC is investing up to #5.34m for an initial 84.3% equity stake, with the balance of equity to be held by management. In the year ended 30 June 2006, the last full year of accounts available for Two Way TV, the company generated revenues of #4.82m.