Dear Shareholders,
 
 Moving forward, ease of use of VAS as well as providing multilingual
 content of choice is the key to increasing adoption.  We strongly
 believe that value chain players should focus on design elements to
 address ease of use and multilingual content. VAS players need to
 understand consumer behaviour and respond with more targeted service
 offerings.
 
 As we stand poised on the threshold of having completed eleven years as
 a pioneer in Mobile Value Added Services (VAS), it is time to reflect
 upon this exciting and challenging journey and also ponder upon the way
 forward for OnMobile to build on its leadership position.
 
 The Mobile VAS industry is becoming bigger each day and with the
 increased focus on 3G and data services, the best is yet to come. The
 industry is currently at an inflection point and has ample potential to
 become larger than the fixed internet, particularly in large, fast
 growing emerging markets.
 
 At OnMobile, we have always prided ourselves on providing
 best-of-the-breed technology and innovations to our customers. In the
 current VAS ecosystem, after the launch of 3G services in India, it has
 become even more imperative for the players (mobile operators, content
 creators and handset manufacturers) to collaborate in order to achieve
 their full potential and garner results. As pioneers and leaders in the
 VAS space, we intend to help them do just that and drive revenues. Let
 me discuss how.
 
 Becoming a leader with our first player advantage in the Indian market
 was one thing.  Maintaining a leadership position and addressing
 revenue and margin challenges of Indian operators in the
 hyper-competitive market environment is quite another. We do this by
 offering differentiated and compelling consumer services, on an
 on-going basis, and working with them closely to make them successful.
 Being an innovator on many fronts, including Technology, Business Model
 and Engagement Model, we believe in adapting and constantly
 re-inventing ourselves.
 
 To this effect, we acquired the leading 3G video technology and mobile
 solutions, developed over eight years, by Silicon Valley based
 Dilithium Networks Inc. Dilithium pioneered mobile video, authored the
 global standard for 3G video telephony, and is the largest customer
 validated 3G video solution for mobile operators globally. This
 acquisition will enable OnMobile to deploy Dilithium''s leadership
 technology in the rapidly expanding mobile video solutions space,
 leveraging OnMobile''s 2G and 2.5G VAS platforms embedded in the world''s
 leading telecom operators, accelerating their launch of 3G VAS
 services. The acquisition also provides OnMobile with Dilithium''s
 extensive patent portfolio over 175 patents in some of the world''s most
 advanced video technologies. Services enabled with Dilithium technology
 include video calling, video blogging, video optimization, etc.
 
 As part of our international expansion, nine new offices were
 registered in Uruguay, Egypt, China, Venezuela, Brazil, Panama, Chile,
 Nicaragua, Spain, Cyprus, and Senegal. We have onsite presence in 52
 countries today, with international revenues contributing to over 27%
 of our global revenues.
 
 The aggressive deployment schedule of the multi-country Telefonica
 project in LATAM continues and we are now live in 6 countries in the
 region, covering over 80% of their total subscriber base. The current
 absorption rate for RBT and Voice & Data services are in line with our
 expectations. We already have over 3 million active users in Latin
 America today, growing rapidly month-on-month.
 
 We also launched RBT services in Egypt, reaching 30 million subscribers
 in a span of just 3 months. Social RBT was launched amongst four
 leading telecom operators in India and abroad, allowing them to
 increase their subscribers'' base by reaching out to more users
 leveraging the viral effect of social networking sites. We also won an
 embedded deal with seven of the major handset OEMs for our Video Stacks
 in China.
 
 OnMobile is all about being different and understanding a need in the
 market even before it becomes apparent. The recent releases from the
 OnMobile suite of products include Karaophone - an innovative service
 that allows users to play karaoke with their social networks via mobile
 or landline phones. The service represents a significant step in the
 convergence of entertainment and social networks, and can help media
 houses, record labels, and operators stand out amongst competition.
 
 We also launched the RCS Phonebook - a comprehensive and interactive
 user Address Book that synchronizes all contact information, including
 friends on social networks, into one central location for easy
 management and live access. The RCS Phonebook enables mobile providers
 to stay ahead of communication''s shift to the Web, by offering its
 customers the ability to stay connected and communicate via live
 presence updates, live chat, and video streaming.
 
 Our Churn Management Solution achieved great success with a leading
 telecom operator in Asia. The operator witnessed an astounding 88%
 increase in subscriber recharges and the program added 2% to the
 top-line revenue of the operator.
 
 Moving forward, ease of use of VAS as well as providing multilingual
 content of choice is the key to increasing adoption. We strongly
 believe that value chain players should focus on design elements to
 address ease of use and multilingual content. VAS players need to
 understand consumer behaviour and respond with more targeted service
 offerings.
 
 The rich market experience we have gained in India will be leveraged
 successfully across global markets in order to successfully deliver
 automated, streamlined and improved operational efficiency. We are
 positive and enthusiastic about the future and believe that we can add
 great value to telecom operators world wide. The deals being won by us
 across the globe indicate that they share the sentiment as well!
 
 Come join me and 1300  OnMobilians across the world take OnMobile to
 newer heights in the burgeoning and exciting VAS space.
 
 Arvind Rao
 
 Chairman, CEO & Co-Founder, 
 
 OnMobile Global Ltd