Primedia Limited
(Incorporated in the Republic of South Africa)
(Registration number 1993/003355/06)
Share code: PMA ISIN: ZAE000035119
Share code: PMN ISIN: ZAE000035127
("Primedia" or "the company")

PRIMEDIA INVESTS IN MOBILE CONTENT SPECIALIST

Primedia enters the hi-growth mobile data market through a strategic investment in specialist mobile content provider, Airgames Entertainment.

Primedia today announced that it has signed an agreement to acquire a 50% interest in Airgames Entertainment, a specialist provider of mobile gaming products and services.

With the proliferation of next generation mobile devices in the local market and the arrival of 3G, the South African mobile content market is exploding in quantum proportions. Already ring-tones, mobile games & video globally generate more revenue than all forms of content accessed over the internet. Total global revenues from mobile games are forecast to increase from $2.6 billion this year to $11.2 billion by 2010. (Informa Telecoms & Media)

Ferdi Gazendam, CEO of Primedia Content, said: "the mobile content market is a landscape where brand owners, telecommunication providers, media companies and software vendors all work together to address consumer needs."

He further commented: "The Airgames investment is Primedia's first step into the rapidly developing mobile games and content industry, one of the fastest growing segments of the mobile data market. Through Ster-Kinekor Games we are already a market leader in the console and PC gaming distribution arena, and extending into mobile games offers us the opportunity to draw on the Group's existing licensing expertise and relationships with international studios."

Airgames has experience in the licensing and provisioning of mobile content and has established diversified revenue streams from mobile games publishing, as well as through the deployment of innovative mobile content solutions.

Founded in 2002, Airgames has distinguished itself as a high quality and creative mobile content provider. It has demonstrated both its technical proficiency and ability to provide innovative solutions for wireless application service providers, brands and entertainment portals in the mobile space.

Terry Shatenstein, founder of Airgames said: "This is an extremely unique alliance with an established media company that represents some of the most diverse media assets in the country."

He continued: "As super 3G mobile services spread, the mobile games market is due to accelerate extremely quickly and the Primedia partnership provides not only the media and financial leverage to evolve with this exciting growth, but also a unique culture of discipline and respect for the entrepreneurial environment."

Apart from offering a wide range of mobile gaming applications, Airgames is the exclusive license holder and distributor of the worlds leading MMS product suite IAMEMO™ and the Spinfone™ connected mobile gaming platform. Airgames further provides its own mobile content provisioning platform called Midlet Earth which has the ability to deliver advanced mobile content across multiple channels, such as operator WAP portals, web portals and other media offerings.

15 November 2005
Sandton
Sponsor: Investec Bank Limited
Brunswick 011 268 5750
Rob Pinker 083 326 7794
Di Munro 083 326 5958
Date: 15/11/2005 03:14:26 PM Produced by the JSE SENS Department