CRE8 Strengthens South American Presence with the Acquisition of Multiecast | Mobile Marketing Association
March 8, 2007



CRE8 Strengthens South American Presence with the Acquisition of Multiecast

March 6, 2007 (Christchurch, New Zealand) – CRE8 (NZAX: PLS) announced today the acquisition of Multiecast Limitada, a leading provider of interactive content services for mobile phone operators and media companies in South America.

Through its operations in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Santiago Chile, Multiecast provides content services to Movistar Chile, Entel PCS and Claro Chile and delivers interactive TV services to the three largest media companies in Chile. The Company has also enabled some of the most innovative mobile marketing campaigns for brands such as Kodak,        Gillette, Nestlé, Duracell and banking applications for the largest financial institutions in the region.

By combining key assets and capabilities, the two companies aim to create the largest footprint for content services throughout Latin America. Through the Multiecast acquisition, CRE8 extends its content service offering to mobile operators in Chile, Peru and Colombia, and has existing content agreements and strategic relationships in El Salvador, Guatemala, Honduras, Nicaragua, Panama, Boliva and Mexico.

CRE8 will base its South American operations in Santiago, Chile and soon enter into Brazil and Argentina while continuing to expand throughout Central America from Mexico City.

“We have achieved another milestone for CRE8, as we not only extend our geographic footprint, but also enhance our local content service offering by closely working with mobile operators and leading content providers in the region,” said Christopher Tiensch, Chief Executive Officer of CRE8. “Mulitecast has a committed, dynamic and entrepreneurial team with a proven track record in the telecommunications, media and technology sector.”

Under the terms of the agreement, Multiecast will operate as a wholly owned subsidiary of CRE8, with CRE8 acquiring all of the equity in return for the following consideration:

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·          Initial cash consideration of US$500,000 and US$200,000 in working capital to accelerate growth throughout the region;

·          Conditional cash consideration of up to US$2 million over two years if Multiecast achieves a 50% yearly revenue growth, EBIT of 25%, and key management remains with the company during the period.


Nicolas Barrera Rios, CRE8’s General Manager in Latin America commented on the acquisition: “The two companies are an ideal match, and we are excited about the technology, talent and customer relationships that this acquisition will bring to CRE8.”

“By joining forces with CRE8, the combined company will be in a stronger position to roll-out a portfolio of services throughout Latin America and capitalise on a number a strategic business opportunities,” said Cristian Olea, Chief Executive Officer of Multiecast.

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About CRE8
CRE8 (NZAX: PLS) is a leading provider of content, connectivity and network services for mobile operators, brands and media companies worldwide. CRE8 is a subsidiary company of Plus SMS Holdings Limited. For more information visit: www.cre-eight.com

For media enquiries, contact: Christopher Tiensch. Tel: +44 1481 735 555.