LENCO MOBILE INC. Announces Audited Results for Wholly Owned Subsidiary AdMax Media Inc. and Signing of Mobile Phone Connectivity Agreement for the United States
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SANTA BARBARA, Calif.--(Business Wire)-- Lenco Mobile Inc. (Pink Sheets: LNCM) today announced the audited profits for its online operations, AdMax Media Inc., for the year ended December 31, 2008 and the signing of a connectivity agreement with OpenMarket. Announcing the results, Michael Levinsohn, CEO of Lenco Mobile Inc., said, "In March 2009 we acquired the assets of Consumer Loyalty Group, LLC and Legacy Media, LLC from Superfly Advertising Inc. The two businesses have been integrated into our USA based operations under the AdMax Media brand. On a pro forma standalone basis, for the twelve months ended December 31, 2008, Consumer Loyalty Group and Legacy Media earned profits of $836,197 on revenue of $12,877,315." Explaining the rationale behind the acquisition of the two businesses, Levinsohn went on to add, "We expect that the AdMax Media platform will be the foundation for our operational expansion in the USA. AdMax Media owns one of the largest consumer databases in the USA, with records on more than 120 million individual consumers who have opted-in to various online advertising campaigns managed by AdMax Media. We believe that the cross marketing synergy between our online operations and our mobile operations is enormous and there is a great opportunity to leverage the two platforms." Lenco Mobile Inc. announced that on a pro forma basis, to December 31st, 2008, profits for the combined mobile and online operations were $1,599,136. "Given the strong demand for our products, we expect to see continued and substantial growth in revenue and profits for the next 12-24 months. There are signs of a turnaround in the online spending area and our mobile phone business has proven very resilient with growth in profits of over 800% for the six month period to the end of June 2009," said Levinsohn. Lenco Mobile Inc. also announced today that it was currently testing connectivity for its MMS messaging platform in the United States. "This is a significant step forwards for us," said Darin Heisterkamp, President of Lenco Mobile Inc.`s American and Asian operations. "We have a proven track record in other regions and we anticipate a positive response to our product offering here in the United States. Once launched we will be able to offer brand owners a comprehensive range of mobile solutions through wireless carries including Verizon, AT&T and Sprint." Lenco Mobile Inc. is in the process of expanding its mobile messaging platform to other regions and the company is in discussion with wireless carriers in Asia and Europe to conclude additional connectivity agreements. About Lenco Mobile Inc. Lenco Mobile Inc. owns and operates businesses focused on the high growth mobile marketing and Internet sectors. Lenco Mobile Inc. owns Multimedia Solutions, AdMax Media Inc., Digital Vouchers and CellCard. Multimedia Solutions, based in South Africa, provides MMS message solutions to wireless carriers and brand owners using its proprietary MMS messaging platforms. The MMS messaging platform provides significant benefits for wireless carries including improved messaging throughput, better quality and reduced bandwidth usage on a per message basis. The Multimedia Solutions platform is offered as a managed service, thereby reducing upfront capital costs for wireless carriers. AdMax Media`s services include a full suite of online performance marketing, search engine optimization and lead generation tools. Admaximizer.com is a real time campaign management platform for online advertising that enables advertisers to obtain the best response to their campaigns. The AdMaximizer platform manages the creation and display of online campaign materials such as banner advertisements, landing pages and email offers by using campaign performance related data, keyword search listings, and search engine optimization components. Digital Vouchers is a mobile phone and Internet marketing platform which enables brand owners to extend offers to consumers which can then be redeemed via mobile phones at point of sale in a retail outlet. CellCard provides brand owners with the ability to download mobile content such as a video clip to a mobile phone and also provides a mobile payment platform which can be used to pay for goods and services, either person to person or person to business. FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the digital marketing industry, growth as anticipated; the positioning of Lenco Mobile Inc. products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Lenco Mobile Inc. can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Neither Lenco Mobile Inc. nor any company mentioned in this release undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Corporate Inquiries: Lenco Mobile Inc. Michael Levinsohn CEO and President Tel: 1 888 LENCO US Email: michael.levinsohn@lencomobile.com www.lencomobile.com Copyright Business Wire 2009
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