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Gizmondo to be available for £100 less... with Smart Adds

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Tiger Telematics® Introduce New Smart AddsTM-Enabled Gizmondo



Groundbreaking Smart Adds model to hit retail at an amazing £129 price point

LONDON, 12th April 2005 - Gizmondo Europe Ltd, subsidiary of Jacksonville, Florida-based Tiger Telematics Inc. (other OTC, TGTL), today confirmed details of its previously outlined strategy for a new Smart Adds-enabled Gizmondo to retail alongside its standard model. Both will feature the same incredible functionality of console quality gaming, music, movies, messaging, a digital camera, and GPS, but the new Smart Adds Gizmondo will come pre-subscribed to the revolutionary 'added value' service at a compelling RRP of £129.

Smart Adds are a groundbreaking method of delivering TV-quality promotions via this mobile device, made possible by the Gizmondo's GPRS connectivity, remarkable processing power, and graphical capabilities. Not available on any other device, Smart Adds are packaged free of charge to an enabled Gizmondo according to the owner's personally selected areas of interest, their gender, age, and location. They come with a massive list of benefits like 20 free music downloads for the first 12 months, video downloads, films, games, and other exclusive content.

Some Smart Adds will contain redemption or barcodes that can be shown to a participating retailer for product discounts and free merchandise, whilst the onboard Global Positioning System hardware can even give directions to the nearest store.

No more than three Smart Adds will be sent to one of these enabled devices each day, they're self-deleting to ensure relevance, and because of the sign up process, they're so perfectly targeted they'll make TV advertising look like spam.

The Smart Adds themselves will feature anything from new trainers, to video clips of new albums, movie and game trailers, DVD previews, even advi-games direct to the device. Most importantly they're non-interruptive, i.e. a movie or a game will not be interrupted by the Smart Add, only when the user returns to the Home menu will be they be broadcasted to the device. Squarely focused on the MTV generation with similar tones and relevance to that particular audience, owners of this model will not receive ads for washing up liquids, tax return reminders, or stair lifts.

Dave Sibley, SVP & General Manager, International Marketing Partnerships, MTV Networks International, commented: "Smart Adds is certainly an extremely compelling proposition and an exciting addition to the media landscape - one which complements MTV's offering. We look forward to building on our existing marketing partnership with Gizmondo and hope to play a role in bringing the Smart Adds proposition to market. MTV has an unrivalled connection with the youth audience and a unique ability to create and tailor both content & commercial messages that resonate with Europe's young and young-minded - we are already sharing our expertise with Gizmondo to maximise the Smart Adds opportunity."

MTV is the world's largest television network and the leading multimedia brand for young adults. Internationally, MTV reaches 400 million households in 164 territories. It has been recognized as the "World's Most Valuable Media Brand" for 5 consecutive years by Interbrand/BusinessWeek, and by the media business as the pre-eminent global youth sales operation, with sales offices throughout the world.

Like conventional TV advertising, Smart Adds will fall under Advertising Standards Authority (ASA) rules and regulations. The company is considering voluntary rating via the Broadcast Advertising Clearance Centre (BACC) and similar in each country where Smart Adds will be available.

Sue Elms, Managing Director, Carat Insight, says: "This is one of the most exciting and innovative media experiments we've ever had the opportunity to examine. The Smart Adds concept is where all marketers will be aiming to be in the future and our research will help outline its true potential for advertisers."

Nina Faust, Head of Media, Warner Music, says: "Warner Music is excited at the prospect of being involved with a thrilling media opportunity such as Smart Adds".

Danny Murray, UK Media Controller, Warner Bros. Entertainment UK, says: "We are very excited by the prospect of Gizmondo and look forward to seeing how the product develops from an advertising perspective"

Nicola Owens of Richmond Research, offered: "The results of our March questionnaire prove that within our panel of over 200 of the country's most senior marketers, 90% of all relevant advertisers are interested in Smart Adds".

Peter Lilley, Head of Smart Adds, says: "Imagine the emotional power of TV combined with the accountability of direct marketing, the accuracy of direct mail and the mobile interactivity of SMS; that's what a Smart Add is. A Smart Adds-enabled Gizmondo is effectively being subsidized by the marketing budgets of major youth and product brands in return for showing the consumer their latest ads." He continued, "The brands will have to be relevant and interesting to our demographic to be allowed on Smart Adds, and we believe they in turn will look forward to receiving them."

The Smart Add-enabled device will come in two guises; a standard pack containing the enabled Gizmondo, battery, charger, earbud headphones, USB lead, and a contract free SIM card with £5 of credit, and a Value pack containing all the above and plus an extra £90 worth of accessories and games. These include Hifi stereo headphones instead of the earbuds, a recordable 128MB recordable SD card containing demos of games, films and music, a free copy of Trailblazer, and a voucher for the first ever GPS game, Colors.

The standard Smart Adds Gizmondo pack will retail at an amazing RRP of £129 ($245, ?189) and the Extra Value pack at £199 ($375, ?289), releasing on 22nd April in the UK, and will be available at launch in each territory as the global roll out continues. Final focus testing is being conducted until the end of April, with the full roll out of Smart Adds planned for 2nd May 2005.

Any customer who buys, or has bought, the non-Smart Adds Gizmondo can choose to upgrade their device, and will receive an electronic voucher for all the accessories included in the Extra Value Pack (or other accessories to the same value).

Carl Freer, Co-founder and Chairman, Tiger Telematics, says: "We've enjoyed an accelerated success with the Gizmondo, and in doing so have met the conditions we set ourselves for the introduction of this Smart Add-enabled version of the device. It's attractive to the consumer not only because of the lower price point, but also as it could effectively pay for itself in product discounts and free merchandise." He added, "This has always been a long-term strategy for us. The revenue when we reach a critical mass of 150,000 Smart Adds-enabled units should represent our bill of materials based on our calculations of costs. We are very excited about the prospect of offering cool advertising to our demographic. The MTV generation is here and is receptive to fun messages that communicate brand and value. Through Smart Adds we are approaching the ultimate paradigm of targeted relevant digital advertising that is broadly recognised as the future of marketing."

The Gizmondo is powered by Microsoft Windows CE advanced real-time operating system, boasting a 2.8-inch TFT colour screen with a Samsung ARM9 400Mhz processor and incorporates the GoForce 3D 4500 NVIDIA graphics accelerator. It provides cutting-edge gaming, multimedia messaging, an MP3 music player, Mpeg4 movie playing capability, a digital camera and a GPRS network link to allow wide-area network gaming. Additionally, it contains a GPS chip for location-based services, is equipped with Bluetooth for use in multi-player gaming and accepts SD and MMC card accessories.

The Gizmondo device and its games are in retail stores now in the UK, and in North American and Continental Europe markets from Spring 2005.

About Tiger Telematics and Gizmondo

Gizmondo Europe Ltd. is an owned subsidiary of Tiger Telematics Inc (TGTL) and is the maker of Gizmondo, a next-generation mobile entertainment device. Launched in 2004, the gaming device includes built-in music, video, messaging and picture functions and GPS.

Tiger Telematics is a designer, developer and marketer of mobile telematics systems and services that combine global GPS functions and voice recognition technology to locate and track vehicles and people down to street level in countries throughout the world. The systems are designed to operate on GPS and are currently being marketed to GSM current and potential subscribers, primarily by the company's United Kingdom based subsidiaries.

http://www.gizmondo.com
http://www.tigertelematics.com

About Smart AddsTM

Smart Adds are multi-media format promotion delivered via the Gizmondo multi-entertainment device. Tiger Telematics is a provider of this unique proprietary new media channel, in conjunction with its media partners and appointed resellers. Smart Adds are delivered according to the registered user's age, gender, and location. This registration can be updated and refined via the Gizmondo.com website. More information can be found at http://www.smartadds.com

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.