Ki-Bi Signs Reseller Agreement with Airgames to Distribute Ki-Bi cards across South Africa; Strategic Partnership with Airgames to Give Ki-Bi Access to 15 Million Mobile Subscribers across the Region.

TEL AVIV, Israel -- Mobile content distribution specialist Ki-Bi Mobile Technologies Ltd. ("Ki-Bi" or "the Company"), today announces its first move into the South African marketplace with the signing of a reseller agreement with one of the region's leading provider of wireless entertainment services, Airgames(TM). The deal follows Ki-Bi's recent moves into other major markets such as Australia, Canada, Germany, New Zealand, Singapore and United States.

Airgames(TM), part-owned by South African media conglomerate Primedia, is a leading provider of content and services to the local mobile entertainment community. The company will look to roll out Ki-Bi cards first in South Africa as a distribution platform for its content portfolio across a range of channels; including retail, covermounts, events, direct marketing and via operator bundling deals.

Ki-Bi's involvement comes at an exciting time in South Africa with data usage growing at a faster rate than the UK.

Terry Shatenstein, CEO, Airgames(TM), said: "Ki-Bi cards are a revolution in the physical distribution of virtual mobile content and this partnership is a unique opportunity for us to leverage their technological innovation in our home market. The Ki-Bi platform is hugely flexible and is applicable across a massive range of usage scenarios and we're looking to investigate all of them to create a new outlet for mobile content."

Ehud Levy, CEO of Ki-Bi Mobile Technologies, said: "South Africa is an important new market for mobile content and Airgames(TM) is the undisputed leader in the space. By partnering with Airgames(TM) we're working with the widest range of mobile content in the region and will be able to leverage its existing expertise and distribution channels in driving mobile content demand across the region."

About Ki-Bi Mobile Technologies Ltd.

Ki-Bi provides innovative technological solutions for physical distribution and marketing of content and applications for mobile handsets. The Company's business model is based upon the sale of electronic content cards ("Cards") and sharing of the revenues from the content distributed through the Cards. Ki-Bi has been a portfolio company of Siemens Acceleration since September 2003. Ki-Bi became publicly traded on AIM in London in May 2005 (LSE:KIB).

Content, such as ringtones, music, video and games for mobile handsets, is currently distributed mainly by over-the-air downloads into handsets, but there are technological, logistic and marketing barriers to traditional physical distribution of such content via retail outlets. Ki-Bi provides a solution for the physical distribution of mobile content based on a combination of proprietary consumer electronics devices and central management server systems.

Ki-Bi's Cards enable flexibility for customisation and production in mass volumes, elements which the Directors consider are essential in brand differentiation and content promotion. During the past two years, Ki-Bi has established relationships with global leaders in the mobile market such as Motorola, Ericsson, Orange, O2, Sun and others. For more information, please visit www.ki-bi.com.

About Airgames(TM)

Airgames(TM) licenses a rapidly growing portfolio of best selling mobile content and partners with leaders in the industry to rapidly launch secure and revenue generating mobile entertainment services.

Through its MIDLET EARTH(TM) provisioning platform, Airgames(TM) offers a first-of-its-kind service delivery platform simplifying customer engagement in provisioning of mobile content and services.

The MIDLET EARTH(TM) suite of products provides a robust, turn-key solution including end user billing via premium rate SMS and WAP, content delivery through SMS and WAP push and an advanced analytical reporting system that provides content owners and distributors with detailed data down to transaction level.

With over 3 years experience in the market, Airgames(TM) has successfully delivered advanced mobile content offerings to leading media players and has partnership programs with market leaders across all segments of the local industry including Network Operators, Service Providers, content developers, brand owners and handset manufacturers.

Airgames(TM) is the exclusive partners in South Africa for the SPINFONE(TM) Mobile Gaming System as well as the worlds leading MMS brand IAMEMO(TM).

About Primedia

Primedia is a leading South African media group. It was established in 1994 and its listing on the JSE Securities Exchange was completed in April 1995. The group has an established portfolio of businesses that cover advertising, broadcasting, filmed-entertainment and one to one marketing. These businesses have leading positions in the markets in which they operate.

This broad base of assets, which includes Broadcasting, Outdoor, Cinema and Commuter, spans both the traditional and non-traditional media sectors. This mix strategically positions Primedia well as advertisers attempt to reach an increasingly fragmented and diverse audience.

The group's local filmed entertainment businesses comprise cinema exhibition, film distribution and home entertainment. Ster-Kinekor Pictures and Ster-Kinekor Home Entertainment both secure rights to distribute film content through exclusive and non-exclusive agreements with international film producers, whilst Ster-Kinekor Theatres exhibits movies through its various cinema sites across the country. Ster-Kinekor Home Entertainment is also the exclusive supplier of Sony PlayStation products in South Africa.