TWT 2Waytraffic

RNS Number:0849H
2waytraffic N.V.
06 November 2007


 

6 November 2007


                                2waytraffic N.V.                                

                           Related Party Transaction                            


2waytraffic N.V. ("2waytraffic" or the "Company") announced today that it has
entered into a licence agreement with Eye Candy Europe B.V. ("Eye Candy"), a
modelling and casting agency for video models, relating to the exploitation of
the 2waytraffic owned format "F.A.B.S.:. Search For A Video Model" (FABS).


FABS is a reality/talent show developed by 2waytraffic involving a search for a
video model, which is currently being shown on Veronica in The Netherlands.
Discussions have taken place between Eye Candy and 2waytraffic in relation to
the FABS trademark and certain merchandising rights, which Eye Candy wishes to
use in The Netherlands and potentially other markets.  The parties have now
entered into a licence agreement under which a license fee of Euro1.5 million is
payable by Eye Candy for an initial license to use the trademark in Holland and
Belgium.  Eye Candy have an option to extend this on a worldwide basis for a fee
of up to a further Euro3 million, which the Directors believe will be exercised in
full shortly following the significant interest the format received at the
recent MIPCOM TV event in Cannes.


The transaction is a related party transaction under the AIM rules as Henk
Keilman, a Non-Executive Director of the Company, has a significant but
non-controlling holding in Eye Candy. The Directors can confirm that the terms
of the agreement have been negotiated on an arm's length basis with Eye Candy. 


The Directors (excluding Henk Keilman), having consulted with their nominated
adviser Investec, consider that the terms of the transaction are fair and
reasonable for shareholders.


This agreement with Eye Candy is consistent with 2waytraffic's strategy of
maximising the long term value and revenue generating potential of its
intellectual property.


The Company also notes that, in the Mobile business, although extensive testing
of a solution to the previously announced technical issue in the US had proved
satisfactory, the full scale roll out has resulted in a recurrence with this
operator. The mobile business is now working on a re-launch with the relevant
network for mid December.


Taking all of the above into account, the Board re-iterates its belief that the
Company is comfortable with expectations for the current financial year,
although the previously announced issues with Call TV and the Mobile business in
the US, coupled with the above transaction and other new business undertaken by
the Group, will mean that the mix of business for the year will be different
from that which had been envisaged.

 
Commenting on the announcement Kees Abrahams, CEO of 2waytraffic, said:


"Eye Candy's interest in our FABS format demonstrates both the strength of our
formats and the potential that exist to develop additional revenue streams. We
were very pleased by the continued interest in FABS and many of our other
formats at the recent MIPCOM event and will continue to explore opportunities to
maximise the long term value of our growing content library".

 
Enquiries: 

2waytraffic                              +31 (0) 35 750 80 00 
Kees Abrahams/Jonni Abbenhuis            
  
Investec                                 +44 (0) 20 7597 5117 
Andrew Craig / Ben Poynter 
 
Financial Dynamics                       +44 (0) 20 7831 3113 
Charles Palmer / Nicola Biles 



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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