RNS Number:6688J
Zone-IP Limited
29 September 2006


                                                     7.00am on 29 September 2006
                                        
                                  Zone-IP Ltd.
                          ("Zone-IP" or the "Company")

              Interim Results for the six months ended 30 June 2006
                                        
Ra'anana, Israel, 28 September 2006: Zone-IP Ltd. (LSE: ZIP), formerly known as
Ki-Bi Mobile Technologies Ltd ("Ki-Bi"), announces its interim results for the
six months ended 30 June 2006.

Financial highlights

  * Total revenues from operations in the period were $251,000 (H1 2005:
    $357,000)

  * Net loss in the period was $2.6 million (H1 2005: $2.1 million)

  * Total assets as at 30 June 2006 were $10.3 million ($13.6 million at 31
    December 2005)

  * Loss per share was $0.13 (H1 2005: Loss per share $0.10)

  * Strong cash portfolio of $9.9 million at period end

Operational highlights

  * In April 2006, the Company decided to cease its card operations but
    continues to support its existing customers.

  * In July 2006, the Company acquired 100 per cent. of Emblaze V CON Ltd
    and was readmitted to trading on AIM on 13 July 2006.

  * The Company also changed its name from Ki-Bi Mobile Technologies Ltd. to
    Zone-IP Ltd.

Enquiries:
Zone-IP
Hadas Gazit                                   +972 9 769 9633

John East & Partners Limited
David Worlidge/Simon Clements                 +44 (0) 020 7628 2200

Chairman's Statement

I am pleased to report the interim results for the six months ended 30 June
2006. The results relate to a period prior to the acquisition of Emblaze V CON
Ltd ("Emblaze V CON") which was completed on 13 July 2006 and as such only
reflect the trading activities of the card operations.

Financial Overview

In April 2006, the Company decided to discontinue the card operations but
continues to support its existing customers. As a result of this decision, 17
employees including the chief executive officer and chief financial officer
ceased employment with the Company.

The Company's revenue decreased to $251,000 (H1 2005: $357,000) and net losses
increased to $2.6 million compared with a loss of $2.1 million in the first half
of 2005.

The Company's operating loss for the period was $2.7 million (H1 2005: $1.4
million) and the net loss per share was $0.13 (H1 2005: $0.10 loss per share).

Current Trading

Since the completion of the acquisition of Emblaze V CON, the principal
activities of the Company have been the provision of video over-IP conferencing
solutions. The Directors continue to be encouraged by the progress Emblaze V CON
has demonstrated in strengthening and improving its leadership position in IP
based videoconferencing.

Strategy

The demand for communication tools using IP (Internet Protocol) standards is
expected to increase as corporations worldwide move to replace and converge
their legacy analog systems into more advanced IP based products.

In order to broaden the Company's existing product offering and to meet this
expected demand the Board is actively seeking to acquire companies which offer
telecommunication over IP products and technologies aimed at the enterprise and
corporate markets.

The Company intends to become a "one stop shop" by being able to provide a
portfolio of IP based communications products.

Emblaze V CON, which specialises in the provision of corporate video
conferencing solutions over IP to its global blue chip customer base, is the
Company's first acquisition as part of this growth strategy.

Board Changes

Following the announcement on 21 September 2006 in which the Company announced
it had relieved Mr Moshe Leder of his duties as chief executive of Emblaze V
CON. Late on 28 Sepetmber 2006, the Company received Mr Moshe Leder's
resignation from his position as a director of the Company and as director of
Emblaze V CON.

Summary

The half year results represent a period in which the Company's activities were
being restructured and are not indicative of future trading activities. The
Company has discontinued the card operations and following the acquisition of
Emblaze VCON is now developing and selling advanced video conferencing over-IP
solutions and technology.

Commenting on the results Hans Wagner, Chairman of Zone-IP, said:

"This is the beginning of a new direction for the Company. We have a clear
vision of being able to offer multiple IP products and solutions to the global
enterprise markets. There is a strong demand for applications running over IP
including simple phone call management and sophisticated multi-point remote
sites video communication. We have a strong team that understands the market and
are capable of identifying suitable acquisition targets in order that we can
build an IP applications company serving the corporate market. By seeking to
build such a group my fellow directors and I are confident we can increase
shareholder value.


Hans Wagner
Chairman
29 September 2006


CONSOLIDATED BALANCE SHEETS AS AT 30 JUNE 2006

                                   Six months        Six months           Year
                                        ended             ended          ended
                                      30 June           30 June    31 December      
                                         2006              2005           2005
                                  (unaudited)       (unaudited)      (audited)
                                        $'000             $'000          $'000

ASSETS

CURRENT ASSETS:
Cash and cash equivalents                 883            15,540          3,899
Short-term available-for-sale
marketable securities                   3,081                 -          2,035
Trade receivables                          11               116            469
Other accounts receivable and
prepaid expenses                          210               188            102
Inventories                                 -               266            295
                                      ---------         ---------     ----------

Total current assets                    4,185            16,110          6,800
                                      ---------         ---------     ----------

LONG-TERM AVAILABLE-FOR-SALE
MARKETABLE SECURITIES                   5,975                 -          6,438
                                      ---------         ---------     ----------

SEVERANCE PAY FUND                         85                59            122
                                      ---------         ---------     ----------

PROPERTY AND EQUIPMENT, NET                74               198            272
                                      ---------         ---------     ----------

Total assets                           10,319            16,367         13,632
                                      =========         =========     ==========

LIABILITIES AND EQUITY

CURRENT LIABILITIES:
Short-term bank credit                      -                 -             53
Trade payables                            130               134            592
Deferred revenues                           -                 -            125
Other accounts payable and
accrued expenses                          239               276            201
                                      ---------         ---------     ----------

Total current liabilities                 369               410            971
                                      ---------         ---------     ----------

ACCRUED SEVERANCE PAY                     109                89            152
                                      ---------         ---------     ----------

EQUITY:
Share capital:
Ordinary shares of NIS 0.01 par
value: Authorised: 30,000,000
shares at 31December 2005 and
30June 2006; Issued and
outstanding: 20,395,101 shares at
31December 2005 and 20,448,101
shares at 30 June 2006.                    43                43             43
Additional paid-in capital             20,219            20,279         20,218
Net unrealized loss reserve               (53)                -            (18)
Accumulated deficit                   (10,368)           (4,454)        (7,734)
                                      ---------         ---------     ----------

Total equity                            9,841            15,868         12,509
                                      ---------         ---------     ----------

Total liabilities and equity           10,319            16,367         13,632
                                      =========         =========     ==========


CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED 30 JUNE 2006

                                   Six months       Six months            Year
                                        ended            ended        ended 31
                                      30 June          30 June        December
                                         2006             2005            2005
                                  (unaudited)      (unaudited)       (audited)
                                        $'000            $'000           $'000

Revenues                                  251              357             913
Cost of revenues (Including write
down of inventory in the amount
of $805, $0 and $295 on 31
December 2005 and 30 June 2005
and 2006, respectively)                   771              296           1,614
                                    -----------       ----------       ---------

Gross (loss)/profit                      (520)              61            (701)
                                    -----------       ----------       ---------

Operating expenses:
Research and development                  626              773           1,642
Sales and marketing                     1,037              310           1,727
General and administrative                535              404             768
                                    -----------       ----------       ---------

Total operating expenses                2,198            1,487           4,137
                                    -----------       ----------       ---------

Operating loss                         (2,718)          (1,426)         (4,838)
Capital loss                             (198)               -               -
Financial income                          327               67             286
Financial expenses                        (45)            (713)           (800)
                                    -----------       ----------       ---------

Net loss                               (2,634)          (2,072)         (5,352)
                                    ===========       ==========       =========

Basic and diluted net loss per
share                                   (0.13)           (0.10)          (0.43)
                                    ===========       ==========       =========

Weighted average number of shares
used in computing basic and
diluted net loss per share         20,401,657       20,395,101      12,433,930
                                    ===========       ==========       =========


CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

                 Share   Additional            Net   Accumulated    Total      Total
               capital      paid-in     unrealised       deficit          recognised
                            capital   loss reserve                          expenses
                 $'000        $'000          $'000         $'000    $'000      $'000

Balance as of
1January 2005       10        2,395              -        (2,382)      23     (1,504)
                                                                              ========

Issuance of
Preferred A-1
shares              -1           97              -             -       97
Exercise of
warrants to
Preferred B
shares               1          811              -                    812
Issuance of
Preferred C
shares, net
of issuance
expenses             1          491              -             -      492
Share based
compensation
related to
options issued
to employees         -           15              -             -       15
Bonus shares
effected as
share split          8           (8)             -             -        -
Issuance of
Ordinary
shares, net
of issuance
expenses2           23       16,417              -             -   16,440
Net losses on
available-for-
sale financial
assets               -            -            (18)            -      (18)       (18)
Net loss             -            -              -        (5,352)  (5,352)    (5,352)
                 -------    ---------      ---------     ---------  -------   --------

Balance as of
31December
2005                43       20,218            (18)       (7,734)  12,509     (5,370)
                                                                              ========

Share based
compensation
related to
options issued
to employees         -          (10)             -             -      (10)         -
Exercise of
options              -           11              -             -       11          -
Net losses on
available-for-
sale financial
assets               -            -            (35)            -      (35)       (35)
Net loss             -            -              -        (2,634)  (2,634)    (2,634)
                 -------    ---------      ---------     ---------  -------   --------

Balance as of
30June 2006
(unaudited)         43       20,219            (53)      (10,368)   9,841     (2,669)
                 =======    =========      =========     =========  =======   ========

1 Represents an amount less than $1.
2 Net of issuance expenses of $2,452 in 2005


CONSOLIDATED STATEMENTS OF CASH FLOWS


                                        Six months    Six months    Year ended 
                                     ended 30 June ended 30 June   31 December 
                                              2006          2005          2005
                                        (unaudited)   (unaudited)     (audited)
                                             $'000         $'000         $'000                                   
Cash flows from operating activities:

Net loss                                    (2,634)       (2,072)       (5,352)
Adjustments to reconcile net loss to
net cash used in operating activities:

Depreciation                                    44            22            44
Capital loss                                   198             -             -
Stock based compensation                       (10)            7            15
Increase/(decrease) in trade and 
other accounts receivable and
prepaid expenses                               350          (250)         (517)
Decrease/(increase) in inventories             295            (1)          (30)
(Decrease)increase in trade and 
other accounts payable and accrued
expenses                                      (424)         (183)          215
(Decrease)/Increase in deferred
revenues                                      (125)            -           125
Accrued severance pay, net                      (6)            2             -
                                         -----------     ---------     ---------
Net cash used in operating
activities                                  (2,312)       (2,475)       (5,500)
                                         -----------     ---------     ---------

Cash flows from investing activities:

Investment in available-for-sale
marketable securities                         (618)            -        (8,491)
Purchase of property and
equipment, net                                 (44)          (37)         (133)
                                         -----------     ---------     ---------

Net cash used in investing activities         (662)          (37)       (8,624)
                                         -----------     ---------     ---------

Cash flows from financing activities:

Short-term bank credit, net                    (53)           (3)           50
Proceeds from issuance of shares and
warrants, net                                    -        17,923        17,841
Exercise of options                             11             -             -
                                         -----------     ---------     ---------

Net cash (used in)/provided
by financing activities                        (42)       17,920        17,891
                                         -----------     ---------     ---------

(Decrease)/Increase in cash
and cash equivalents                        (3,016)       15,408         3,767
Cash and cash equivalents at
the beginning
of the period                                3,899           132           132
                                         -----------     ---------     ---------

Cash and cash equivalents at
the end of the period                          883        15,540         3,899
                                         ===========     =========     =========

Supplemental disclosure of cash flows
activities:
Cash received during the period for:
Interest                                       327            67           286
                                         ===========     =========     =========
Non-cash activities:
Share dividend effected as
share split                                      -             8             -
                                         ===========     =========     =========
Issuance expenses                                -            13             -
                                         ===========     =========     =========


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1:- GENERAL
     
a.   These financial statements have been prepared as of 30 June 2006 and for 
     the six months then ended. These financial statements are to be read in 
     conjunction with the audited annual financial statements of the Company as 
     of 31 December 2005 and their accompanying notes.

b.   At the end of May 2006, the Company signed an agreement with Emblaze V Con
     Ltd. ("EVC") and its shareholders under which the Company was to acquire 
     EVC in exchange for the issuance of shares that will represent 60 per cent. 
     of the outstanding shares of the Company immediately following the 
     consummation of the agreement with EVC's shareholders.

     The consummation of the agreement was approved by the shareholders of Ki-Bi 
     at the annual general meeting ("AGM") of the Company that took place on 12 
     July 2006. Due to the size of EVC in relation to the size of the Company, 
     the acquisition constituted a reverse takeover under the London Stock 
     Exchange Rules and therefore required the prior approval of the AGM.

     As part of a reorganisation and the negotiations for the acquisition of 
     EVC, in April 2006, the Company's Board of Directors decided to cease the 
     current Ki-Bi cards operations. As part of the decision, the employment of 
     17 employees including the Company's CEO and CFO was terminated and 
     write-off of inventory in the amount $295.

c.   In July 2006, the Company changed its name from Ki-Bi Mobile Technologies 
     Ltd to Zone-IP Ltd.

NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies and methods of computation applied in the
preparation of the interim financial information are the same as those applied
in the annual financial statements of the Company as of 31 December 2005.

This financial information have been prepared in a condensed format as of 30
June 2006 and for the six months then ended ("interim financial information").
This financial information should be read in conjunction with the Company's
audited annual financial statements and accompanying notes as of 31 December
2005 and for the year then ended. Operating results for the six-month period
ended 30 June 2006 are not necessarily indicative of the results that may be
expected for the year ended 31 December 2006.

NOTE 3:- FINANCIAL STATEMENTS IN U.S. DOLLARS

a.   The financial statements are prepared in accordance with International
     Financing Reporting Standards ("IFRS").

b.   Foreign currency translation:

     The majority of the Company's sales are made outside Israel in non Israeli
     currencies, mainly the U.S. dollar and GBP. A substantial portion of the
     Company's expenses, mainly selling and marketing expenses and production 
     costs is incurred in or linked to U.S. dollars. The financing of the 
     Company is in U.S. dollars. Therefore, the Company has determined that the 
     U.S. dollar is the currency of the primary economic environment of the 
     Company, and thus its functional and reporting currency.

     Assets and liabilities in or linked to non-U.S. dollar currencies are 
     included in the financial statements according to the representative 
     exchange rate as published by the Bank of Israel on balance sheet date.

NOTE 4:- LOSS PER SHARE

The calculation of loss per share is based on the loss attributable to ordinary
shareholders of $2,634,000 (2005: $2,072,000) divided by the weighted average
number of shares in issue during the year, being 20,401,657 (2005: 20,395,101)
shares.

NOTE 5:- DIVIDENDS

No dividend is proposed for the six months ended 30 June 2006.

COPIES OF THE INTERIM FINANCIAL STATEMENTS

Copies of the interim financial statements will be available to shareholders at
the Company's registered office.





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

END
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