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Preliminary Announcement

08 Jan 2007

Preliminary Announcement for the Year Ended 30th September 2006

Mediasurface plc (‘MSR’) – Company Registration Number – 4016495
Results for the Year Ended 30th September 2006


Mediasurface plc, the AIM listed Content Management Software Author and Vendor announces results for the year ended 30th September 2006.

Financial and Operating Highlights

• Turnover up 42% to £9.67 million (2005 :£6.80 million)
• UK achieved revenue growth of 58%
• USA revenues doubled
• License revenue growth of 61%
• Annualised recurring revenue  up 28% at £2.5 million (2005 : £1.95 million)
• Reported operating profit before operating exceptionals of £0.81 million (2005 : loss of £0.54 million)
• Cash of £1.1 million as at 30th September 2006 (2005 : £0.3 million)
• Bank facility increased to £0.5m (2005 : £0.35 million) to provide additional working capital headroom
• Continued investment in software development of £1.37 million (2005 : £1.25 million)
• Released a new version of Mediasurface Morello (5.4) in July 2006
• Pepperio, a new product for the SMB market place, was officially launched in May 2006
• Established a software development centre in Bangalore, India in April 2006
• Established a sales office on the West Coast of the USA
• Pipeline opportunities continue to increase both in quantity and quality

The full announcement is available for download below.  Shareholders will receive a copy of the report and accounts in due course.