Placing raises £510,000 Trading update and Change of Adviser

The Board of Adwalker, the AIM listed specialist in wearable media solutions, is pleased to provide shareholders with an update which covers the following key points:

- Placing raises £510,000, before expenses;
- Board encouraged by current trading levels;
- Several US contract wins, including one with a large US retailer;
- Ongoing discussions to conduct a pilot on behalf of a major corporation;
- Final 2006/7 Results expected to be announced in August 2007; and
- John East & Partners Limited appointed as the Company’s Broker.

Placing
The Board announces today that it has conditionally raised £510,000, before expenses, from a Placing by John East & Partners Limited (“John East & Partners”) of 17,000,000 ordinary shares in the capital of the Company (“Ordinary Shares”) at 3p per share (the “Placing Shares”) with institutional investors.

The net proceeds of the Placing, amounting to £475,000, will provide additional working capital to support the expected growth of the Company, settle overdue trade creditors and provide working capital generally.

Following the issue of the Placing Shares, the Company will have 185,633,087 Ordinary Shares in issue. Application will be made for the Placing Shares to be admitted to trading on AIM. Dealings in these shares are expected to commence on 30 May 2007.

Current Trading

The Board is encouraged by the current levels of trading. In particular, the US office has performed well with several contract wins, including one with a large US retailer, in the first three months of this financial year.

As announced on 14 May 2007, the Company is in discussions to conduct a pilot of an interactive fixed screen digital network on behalf of a major corporation, with the intention of rolling out a network of interactive screens across Europe conditional on whether the pilot is successful. These discussions continue, and a further announcement is expected to be made in due course.

In January 2007, the Company made its US network television debut on season six of NBC’s “The Apprentice”. The programme’s adoption of Adwalker is further testament to the capabilities of the Adwalker platform and the brand.

The Company expects to announce its results for the year ended 28 February 2007 in August 2007.

Change of Adviser
The Company also announces the appointment of John East & Partners as the Company’s Broker with immediate effect.

Commenting on today’s update, Simon Crisp, CEO, said: “The result of this placing will provide the Company with the necessary resources and working capital to optimise the opportunities we have created and accelerate future growth.

The Board is encouraged at the current level of trading – especially in the U.S. where the Adwalker platform made its US network television debut on season six of NBC’s ‘The Apprentice’. We look forward to updating shareholders on further developments in due course.”