9 July
    2015                                                                                                                           
    For immediate release

                                     INTERNETQ PLC                                 

    ('InternetQ', the 'Group' or the 'Company')

           InternetQ raises c. €17m for Akazoo, its music streaming service        

    InternetQ plc (LSE-AIM: INTQ), a leading provider of mobile marketing and
    digital entertainment solutions for mobile network operators and brands, is
    pleased to announce a strategic investment into the Company's popular
    subscription-based music streaming service, Akazoo, by a consortium led by
    Toscafund Asset Management LLP ("Toscafund") and Penta Capital LLP ("Penta
    Capital").

    Tosca Penta Music LP ("Tosca Penta Music"), a special purpose investment
    vehicle backed by Toscafund and managed by Penta Capital, is investing c. €17
    million (£12 million) in cash into the UK registered entity that will hold the
    Akazoo business, operations and platform. Concurrently, the shareholders of R&R
    Music Ltd ("R&R Music"), the London-based IP/patent-powered music
    recommendation and user profiling technology company, have agreed to contribute
    their business to the new Akazoo group. The cash investment will be used to
    grow Akazoo's operations and footprint and expand the new entity's proposition
    across new verticals through continued development of the Akazoo platform and R
    &R Music's technologies.

    Based on the subscription terms of the new investment, the implied post-money
    valuation of the enlarged Akazoo business (including R&R Music) at announcement
    is approximately €104 million, with InternetQ holding c. 69.1% of the shares,
    while Tosca Penta Music and R&R Music's founders and existing investors hold
    the remaining shares. The enlarged business, headquartered in London, UK, will
    be effectively debt-free at the outset and will have a dedicated board of
    directors.

    Iain Barrie Johnston, Non-Executive Director of InternetQ, and Panagiotis
    Dimitropoulos, CEO and Founder of InternetQ, will be appointed Chairman and
    member of the new board of directors respectively.

    Apostolos N. Zervos, currently SVP of Akazoo at InternetQ, will be appointed
    Chief Executive Officer of the enlarged business and David Ritchie, currently
    CEO of R&R Music, will become Chief Strategy Officer.

    Strategic Rationale

    In light of the increasing demand for content streaming and related services
    globally, and recent successes of Akazoo in penetrating blue chip customers and
    large, attractive geographies, this transaction is particularly timely for
    InternetQ. It provides significant new cash resources, IP, human capital,
    operational and technological synergies and other related assets to further
    build on the strong momentum of InternetQ's B2C services as a differentiated
    and broad offering that is attracting a significant subscriber base globally.
    Similarly, the structural separation of Akazoo aims to improve focus on
    InternetQ's respective business lines, while maintaining control of both.


     

    Panagiotis Dimitropoulos, Chief Executive Officer and Founder of InternetQ
    commented:

    "We are delighted to announce this landmark transaction for our digital
    entertainment business and our Akazoo brand. We welcome Toscafund and Penta
    Capital as business partners. We look forward to working together with the
    founders and employees of R&R Music to drive synergies and grow the enlarged
    business. Our music and digital entertainment business now has additional
    ammunition to continue to innovate and serve real customer needs and desires
    across the globe, and play an important role in enriching products and offers
    for unserved verticals and geographies."

    Eric Nicoli CBE, Chairman of R&R Music, commented:

    "We're hugely excited to combine forces with the excellent Akazoo team to
    create an entity which, when underpinned by the support of InternetQ and new
    funding from Tosca Penta Music, will have the expertise, technology and
    propositions to become an increasingly important  international  player in the
    digital music, social media and data space."

    Martin Hughes, CEO and founder of Toscafund, commented:

    "It is always pleasing to meet and work with like-minded entrepreneurs that
    judge success over a period of years. Having supported the development and
    growth of R&R Music and its predecessor since 2007, it is a pleasure to move to
    the next phase of growth in combination with Akazoo and the excellent
    management teams of both businesses."

    R&R Music was founded in London by David Ritchie and Eric Nicoli. R&R Music
    works with all forms of content, but primarily focuses on music. It combines
    patented algorithms, behavioural science, expertise with social media, and
    human curation to create a highly innovative profiling and recommendation
    engine and boasts a range of unique and compelling products and services for
    music fans, artists, businesses and brands.

    Penta Capital is a UK mid-market private equity investor. It currently manages
    over £300 million of commitments from its funder groups. It has successfully
    invested in a number of technology businesses in recent years, including the
    recently announced exit of Six Degrees Group.

    Toscafund, founded in 2000 and based in London, is a multi-asset manager of
    institutional, private family and retail funds. Total funds under management
    are presently $4bn.

    Panagiotis Dimitropoulos, Chief Executive Officer, Veronica Nocetti, Chief
    Financial Officer, Apostolos Zervos, the soon to be appointed Chief Executive
    Officer of the new enlarged Akazoo business, and Eric Nicoli, Chairman of R&R
    Music will host a conference call for analysts and investors to discuss the
    announcement commencing at 8.30 am BST on Thursday 09 July 2015.

    Dial in details are as follows:

    Conference ID: 82005708

    Participant FreeCall UK: 0800 073 1340

    Participant Std International: +44 (0) 1452 569 393

    Participant USA FreeCall: 1866 434 1089

    An audio webcast will also be available with the URL link below: http://
    wcc.webeventservices.com/r.htm?e=1022435&s=1&k=F9DB5CABA6D0A93601BDCC09E2187756


          
                                                                                       ENDS

    For further details:

    InternetQ                                     T: +44 (0)20 3519 5250 / +30 211
    101 1101

    Panagiotis Dimitropoulos, CEO and Founder             T: +30 697 811 7520

    Veronica Nocetti, Chief Financial Officer                  T: +30 694 420 5275

    FTI Consulting LLP

    Charles Palmer / Chris Lane / Nicola Krafft / Karen Tang T: +44 (0)20 3727 1000

    RBC Capital Markets

    Pierre Schreuder / Ema Jakasovic                         T: +44 (0)20 7653 4000

    Canaccord Genuity

    Simon Bridges / Emma Gabriel                             T: +44 (0)20 7523 8000

    About InternetQ plc:

    InternetQ is a leading digital content and mobile marketing services company
    with operations spanning Asia, Europe, Africa and the Americas. It offers
    proprietary technology platforms to help mobile network operators, brands, and
    media companies to conduct targeted, interactive and measurable marketing
    initiatives on mobile devices. Its mobile value added services include Akazoo,
    which allows consumers to purchase digital music content and Minimob, its smart
    mobile marketing and advertising platform to conduct effective and measurable
    campaigns on mobile phones and achieve user engagement and app
    monetization. All of InternetQ's products are underpinned by the rapid global
    growth in smart devices and the thriving app economy.

    InternetQ is a publicly traded company listed on the AIM market of the London
    Stock Exchange, under the symbol INTQ. For investor related queries, please
    email: ir@internetq.com