ROK Entertainment Group Inc. Reports Annual Results for Fiscal Year 2007

LONDON--(BUSINESS WIRE)--ROK Entertainment Group Inc. (OTCBB:ROKE)(“ROK” or “the Group”), the global mobile entertainment group, announces its annual financial results for the fiscal year ended March 31, 2008.

ROK has developed a revenue-generating mobile product portfolio comprising over 40 applications, from high-quality mobile TV streamed live and on-demand over mass-market mobile networks, to the storage of copy-protected video content for play on the mobile devices, through mobile Voice over Internet Protocol (mVoIP) technologies, mobile social networks and mobile conference-calling services. It currently has corporate operations in the United Kingdom, the Peoples Republic of China, the United States and South Africa which are all active, and joint ventures in Russia, Brazil and Pakistan.

This was a transitional year for ROK that resulted in its transformation into a much stronger business with broader product lines, technical capabilities, global footprint and customer relationships as well as becoming publicly traded with quotation on the OTC Bulletin Board. As a result of the solid foundations laid during FY2007 and further major milestones achieved post year-end, ROK is a now a leading provider of innovative multimedia content solutions, based on patented and patent-pending technologies, to mobile operators, handset manufacturers and users worldwide.

In November 2007, ROK completed a share exchange transaction with Cyberfund Inc., a US public company (OTCBB: CYFD), resulting in its quotation on the OTC Bulletin Board. The combined company operated initially under the name of Cyberfund, with its sole line of business that of ROK, until its reincorporation in the State of Delaware and change in corporate name to ROK Entertainment Group Inc. in December of that year.

During FY2007, ROK focused on strengthening relationships with key global partners and on expanding into new regions. The Group’s customers include major global players in the mobile market including Nokia, Telenor Group, Samsung, China Mobile and Virgin Mobile, as well as companies outside of the telecommunications sector such as Claire’s Accessories in the UK.

Since inception, ROK has had limited revenue from the sale of products and services, and it has had losses. Revenues for FY2007 are $14.6m (FY2006: $4.2m), representing an increase of 247 per cent. Its net losses for the years ended March 31, 2008 and 2007 are $36.6m and $12.7m, respectively, and its accumulated deficits as of March 31, 2008 and 2007 are $78.2m and $41.5m, respectively. Share Based Payments made up $15.1m of the $36.6m losses in FY2007, paper payments associated with the reverse merger into Cyberfund and some acquisitions (see below). The increase in core losses was due to investment in expanded operational capacity, infrastructure and research and development. ROK expects to increase its spending significantly as it continues to expand its infrastructure and its sales and marketing efforts, and continues research and development.

The Group experienced strong operational performance. It continues to undergo rapid change in the scope and breadth in its operations as the development and commercialization of its mobile media products and services advances. During the year, it made several acquisitions, including Blubox Software Limited; Los Angeles-based Fun Little Movies, a company specializing in the development, production and distribution of original mobile-oriented comedy for global distribution; took a strategic stake in a strategic stake in Matchday Entertainment Limited, a China-based subsidiary of Asia Poker Limited, to deploy the first 3D online poker service in China; and acquired mobile and web applications developer Geniem. Post year-end, in May 2008, ROK acquired IPTV company Jalipo, which offers live streaming of TV content over the Internet.

The agreements entered into this year by ROK include mobile services distribution agreements with FoneWorx and China Mobile in Pakistan; an agreement with Utarget Networks for pre-roll advertising; the launch of a mobile TV service with Vodafone-Turkey; a cooperation agreement with Beijing Fone Net Information & Technology Co., Ltd. to provide mobile TV content to China Mobile customers; the provision of Blubox digital image compression software to Samsung Semiconductor Europe; and the provision of ANSA, a mobile question and answer service, to Nokia Smartphones via Download! application. Other significant developments include, the extension of its product range with the launch of a software compression application for digital images through its Blubox subsidiary; Cadbury Creme Egg, Twentieth Century Fox Home Entertainment ‘24’ and Codemasters becoming the first advertisers to be broadcast on ROK’s free mobile TV service, FreeBe TV; the broadcasting of the Chinese ‘Spring Festival Gala’; and the grant of two patents for the technology regarding Multimedia Memory Cards that will enhance the provision of content for mobile phones.

As a result of these acquisitions, agreements and extensions to its product and intellectual property portfolio, ROK is well-positioned for expansion and revenue growth this year.

Laurence Alexander, Group CEO, commented: “We made tremendous progress in 2007 and fulfilled our strategic initiatives to position the business for long-term profitable growth. We substantially increased our revenues, established and furthered relationships with key global players in the telecommunications sector, enhanced our product and service offerings, which was helped by our strategic acquisitions, and strengthened our intellectual property. The positive impact of last year’s achievements can already be seen in 2008 with the Group receiving industry recognition in winning several prestigious awards. As a result, ROK has established solid foundations from which to expand and we look forward to the future with confidence.”

ROK ENTERTAINMENT GROUP INC.

STATEMENTS OF OPERATIONS

YEARS ENDED MARCH 31, 2008 AND 2007

(in thousands of dollars except for share data)

		2008				2007
							(unaudited)
Sales:
Product sales			11,597				1,183
Services and other sales			2,988				3,021
Total sales			14,585				4,204
Operating expenses:
Content and distribution			3,817				2,663
Cost of handsets			7,864				-
Product development			10,485				5,436
Sales and marketing expenses			14,503				5,565
General and administrative expenses			12,006				2,896
Depreciation and amortization			564				352
Fun Little Movies acquisition			967				-
Goodwill written off on acquisitions			1,689				-
License fee payable to related party			471				192
Goodwill written off on impairment			273				-
Total operating expenses			52,639				17,104
Operating loss			(38,054	)			(12,900		)
Other income			12				-
Interest income			13				-
Interest expense			(1,592)				(983		)
Operating loss before taxation			(39,621	)			(13,883		)
Income tax benefit			1,134				1,035
Operating loss after taxation			(38,487)				(12,848		)
Minority interest			1,932				113
Net loss		$	(36,555	)		$	(12,735		)
Basic and diluted loss per common share		$	(0.86	)		$	(0.94		)
Basic and diluted weighted average shares outstanding			42,520,963				13,580,245

ROK ENTERTAINMENT GROUP INC.

BALANCE SHEET

MARCH 31, 2008 AND 2007

(in thousands of dollars except for share data)

		2008				2007
							(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	1,623			$	129
Accounts receivable, net			10,035				939
Inventories			1,298				2
Prepaid expenses and other current assets			1,366				1,500
Due from affiliated companies			2,523				257
TOTAL CURRENT ASSETS			16,845				2,827
INVESTMENTS			132				-
PROPERTY AND EQUIPMENT, net			3,544				609
GOODWILL			1,582				272
INTANGIBLE ASSETS, net			202				4
TOTAL ASSETS		$	22,305			$	3,712
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Line of credit, bank		$	1,616			$	-
Accounts payable			12,225				3,389
Accrued liabilities			9,390				3,397
Due to affiliated companies			2,064				1,150
Due to related parties			1,390				201
Current portion of loans			1,207				1,410
Current portion of capital lease obligations			119				110
TOTAL CURRENT LIABILITIES			28,011				9,657
LONG-TERM LIABILITIES
Due to related parties			19,869				17,398
Other long-term liabilities			2,081				1,148
TOTAL LONG-TERM LIABILITIES			21,950				18,546
TOTAL LIABILITIES			49,961				28,203
MINORITY INTEREST			(1,618)				551
SHAREHOLDERS’ EQUITY (DEFICIT)
Common stock, $0.001 par value, 100,000,000 shares authorized; 51,100,277 and an effective balance of 27,043,971 shares issued and outstanding at March 31, 2008 and 2007, respectively			51				27
Additional paid-in capital			53,800				19,494
Accumulated other comprehensive income			(1,867)				(3,096)
Accumulated deficit			(78,022)			(	41,467	)
Total shareholders’ equity (deficit)			(26,038)			(	25,042	)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)		$	22,305			$	3,712

About ROK Entertainment Group Inc.

ROK Entertainment Group Inc., founded in 2004, is a global mobile entertainment group.

With approximately 200 staff worldwide, ROK has filed more than 40 international patents for its suite of innovative mobile technologies.

With 3 billion mobile handsets in use worldwide, the mobile TV industry is forecast to become a multi-billion dollar business within a few years.

ROK TV enables the streaming of live and on-demand TV to mobile phones over mass-market 2.5G, as well as over 3G and Wi-Fi.

Forward-Looking Statement

The information contained in this new release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in these statements. Forward-looking statements regarding the timing of developing, testing and releasing existing and new products, of marketing and selling them, of deriving revenues and profits from them, as well as the effects of those revenues and profits on the Group's margins and financial position, are uncertain because many of the factors affecting the timing of those items are beyond the Group's control.