Tough times dont last - tough companies do!"

Tough times dont last - tough companies do!"

Edinburgh (UK), 2 August 2002 - Yakara plc are celebrating seven years in business with the publication of their 2001 annual report. The current tough climate in the high-tech industry wont last but its certain that the companies who do survive have been investing in their core business, building competitive advantage and above all creating value for customers through quality and innovation.

Stuart Malcolm, Managing Director, says tough times dont last, but tough companies do", and Yakara plc, now in its eighth year of trading, has attained significant achievements in the past 12 months. As the company completes the transition from contract software developer to producing market-focussed software products, Yakara plc has successfully deployed its m-groups solution, made prominent appointments to the Board, closed a second offer for subscription and formed strong partnerships within the telecoms industry.

Back in November 2001, Yakaras mobile community and lifestyle solution was successfully installed and deployed by mmO2 (formerly BT Cellnet) on their 23rdfloor Internet portal under the brand name txtm8s®. The service enables users to create groups in which they can vote, chat, share logos and ring tones and play games.

In May of this year Yakara plc successfully closed an offer for subscription amongst existing ordinary shareholders, raising 234,000. This money will be used to deliver commercial, revenue-generating installations of m-groups mobile community services. The company is already in advanced discussions with leading mobile operators and portals and expects to be making further announcements shortly.

*txtm8s is a registered trademark of Yakara plc