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3G Player's Positive Trading Statement
27th March , 2006
Europe UK : All New Video Plc (ANV) has developed one of the largest mobile value added (3G) infrastructure networks in Europe, allowing mobile content providers and network operators to promote and develop their content over 3G mobile, IP and ISDN connections.

The business consists of new 3G related services and more traditional video conferencing services.

The high degree of resilience and quality demanded by our customers who include Orange and the recent projects for broadcasters and media companies have meant that ANV has built an infrastructure and capacity capable of addressing the growing demand for 3G services.

ANV's relationship with Orange continues to go from strength to strength with more sophisticated network enhancements and services being implemented in the UK
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The re-signing of the Video Call Termination contract with Orange for a further two years has led to discussions with other France Telecom mobile businesses which are in varying stages of development.

This investment and the slower than expected growth in content driven traffic over our managed services has led the company to change its business model to a fixed subscription model and revenue sharing for future improved traffic volumes rather than just rely upon a revenue sharing model with clients.

ANV has signed a number of contracts with network operators and content providers which include the mobile operator Orange and the morning breakfast television company GMTV.

As a result of the investment that it is making, the company is not currently profitable. The company has taken action to reduce costs and preserve cash reserves; the current cash position is £219,000.

Outlook

The company continues to work on a number of exciting projects and the pipeline is growing with some encouraging deals in negotiation. The Board has been disappointed with the growth and uptake of services but has taken the necessary short term action to enable the company to convert the pipeline of prospects into sales.