Mandalay Media Concludes Merger with Twistbox Entertainment

LOS ANGELES, February 15: Mandalay Media has completed its
acquisition of mobile-content provider Twistbox Entertainment.

Twistbox Entertainment is now a wholly owned subsidiary of Mandalay
Media. Twistbox Entertainment will be the foundation for Mandalay Media's
mobile and interactive offerings. Based in Sherman Oaks, California, Twistbox
has direct on-deck distribution with more than 100 mobile operators in 40-plus
countries, and offers products and services such as video-rich WAP sites,
mobile TV and in-house developed mobile games that reach more than one billion
handsets. The company also maintains development and sales offices throughout
Europe and Latin America.

The current senior management team of Twistbox will continue
to operate the business across its subsidiaries and territories. Ian Aaron, who
is currently the CEO of Twistbox, has been appointed to the Board of Directors
of MNDL and continues to serve as the CEO of Twistbox. Prior to joining
Twistbox, Aaron served as the president of the TV Guide Television Group.

Mandalay Media was created by leading executives from the
entertainment and investment industries and is co-chaired by Peter Guber and
Rob Ellin. The company’s mission is to build a unique combination of new-media
distribution and content companies through asset acquisition, merger, exchange
of capital stock or other business combination with a domestic or foreign
business.

“Twistbox is our first acquisition and an important step
towards establishing Mandalay Media as a global digital-media company,” stated
Bruce Stein, Mandalay Media’s COO. “We are aggressively pursuing other
new-media opportunities at the intersection of digital media, casual gaming and
content commercialization that can leverage Twistbox's global distribution
footprint, content publishing platforms and mobile-games development
capabilities.”

—By Irene Lew