Galleon Acquires Media Solutions Company in Hong Kong

LONDON, October
23: Galleon Holdings has agreed to purchase the Hong Kong-based media solutions
company Phoenix Investment Global for initial consideration of £1.5 million.

Additionally, a
deferred consideration of up to £500,000 will become payable subject to, among
other things, two of Phoenix’s broadcast customers in Southeast Asia entering
into exclusive agreements on certain mobile services. An additional
consideration of up to £3.5 million may become payable, pending Phoenix’s
financial performance over the next three years.

Headquartered
in Hong Kong with offices in China and Malaysia, Phoenix specializes in the
provision of interactive broadcast television services that allow broadcasters
in China and Southeast Asia to provide interactive entertainment that audiences
can access through TV, online and mobile. The company’s customers include
broadcasters such as Hunan ETV, Hunan Satellite and Guangdong Sports Channel in
China and Media Prima in Malaysia. Phoenix was established in July 2007.

Together,
Galleon and Phoenix intend to exploit their broadcaster relationships across
Southeast Asia to increase the terms of interactive services and to roll out
new entertainment properties.

In addition,
Galleon further announced that it has raised £8 million by issuing 27,586,212
new shares on the London stock market. The majority of the proceeds will be
used to fund the future development of the company’s expansion in China, which
may include additional acquisitions or joint ventures. The remainder of the
proceeds will be used for additional funding for Galleon’s product IP division,
Croco, and to further fund the development of the company’s entertainment
properties.

“Our strategy
for cross-platform media entertainment has been to focus on the emerging
markets, with their huge audiences and high mobile phone penetration,” said
Stephen Green, Galleon’s CEO. “With Phoenix, Galleon has a pipeline straight
into China and Asia giving our cross-platform entertainment content access to
hundreds of millions of viewers at any one time. The sheer size of the
audiences in China alone creates whole new scale-based business models, and the
Phoenix team has the experience, network and relationships to maximize these
opportunities going forward.”

—By
Kristin Brzoznowski