Sports Stars Media plc SSM launches Gombby mobile applications (0384W)

TIDMSPSM

RNS Number : 0384W

Sports Stars Media plc

22 January 2013

Sports Stars Media plc

("SSM" or "the Group")

SSM launches Gombby mobile applications

SSM, the AIM-quoted sports personality animation business, announces that it has today launched two mobile applications ("apps") for Apple's iOS devices from the Gombby's Green Island animation series ("Gombby").

Gombby Channel enables viewing of Gombby episodes either by streaming from the web or by downloading to devices for offline viewing. The app is free to download and offers three full complementary episodes. The option to purchase additional episodes is available, up to a total of 10 episodes initially. Gombby Channel has been released worldwide, except for in some excluded territories where previously negotiated rights prevent the app from being used.

Gombby Stickers enables users to create their own scenes and build new stories using Gombby characters and objects. The app is free to download and has some free content together with the option to purchase additional content. Gombby Stickers has been released worldwide.

Both apps are available in English, Spanish and Portuguese.

Licence Agreement

In connection with the launch of Gombby Channel and other mobile applications which are in production, Magnistage-Unipessoal, Lda ("MS"), the subsidiary of SSM which provides management services in relation to the exploitation of Gombby, has entered into a licence agreement with Big Storm Studios ("BSS"), the owner of the Gombby television series and brand, pursuant to which, in consideration for the rights to use the Gombby characters in the applications, MS will pay to BSS a royalty of 20 per cent. of total future revenues derived from the commercialisation of these applications (the "Licence Agreement").

As detailed in the Group's admission document dated 16 January 2012, MS is party to a management agreement with BSS under which it receives a fee of 20 per cent. of the net revenues received by BSS from the commercialisation of Gombby. This fee is waived by MS in relation to revenues earned by BSS under the Licence Agreement.

Related Party Transaction

BSS is owned by Pedro Maria and Leading Capital, SGPS, SA, a Portuguese holding company which is wholly owned by Ruben Dias. Pedro Maria and Ruben Dias are directors of the Company. Future transactions arising under the terms of the Licence Agreement may therefore constitute related party transactions pursuant to AIM Rule 13.

The independent directors, being the SSM directors excluding Ruben Dias and Pedro Maria, consider, having consulted with Cairn Financial Advisers LLP, SSM's Nominated Adviser, that the terms of the Licence Agreement are fair and reasonable insofar as the Group's shareholders are concerned.

CEO Ruben Dias commented: "We are very excited to bring Gombby to the mobile world. Mobile is booming everywhere and it is a very important step for us to launch Gombby on mobile platforms. The immersive user experience and richness that the mobile platforms allow will help children to engage with Gombby and his adventures in a new way, while at the same time opening new revenue opportunities for SSM."

For further information, please contact:

 
 Sports Stars Media plc 
  Ruben Dias, CEO 
  www.sportsstarsmedia.com                      +1604 902 2214 
 Nominated Adviser, Cairn Financial Advisers 
  LLP 
  James Caithie/Avi Robinson                    +44 207 148 7900 
 Broker, Dowgate Capital Stockbrokers 
  Limited 
  Neil Badger                                   +44 129 351 7744 
 Financial PR, Bishopsgate Communications 
  Nick Rome/Sam Allen/Matt Low 
  sportsstars@bishopsgatecommunications.com     +44 20 7562 3350

This information is provided by RNS

The company news service from the London Stock Exchange

END

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