More than one quarter of 3 UK customers watch free videos on their mobile Phones.

LONDON, October 18, 2007 ¬ 3 UK today announces that more than one million customers have registered to use its free-to-access mobile video service powered by Rhythm NewMedia. Adoption has been rapid and in only six months, more than one quarter of 3’s growing user base have registered for this new service which delivers targeted and personalized advertising to a hard-to-reach demographic.

Rhythm NewMedia both sells and serves these video ads and its in-line brand awareness research system is used for measuring customer satisfaction and ad effectiveness. Top brands that have already used this service include Microsoft for mobile, Cisco, Intel, Unilever Lynx, Nivea, Ministry of Sound, Paramount Pictures, Entertainment Film and Coty and the Gwen Stefani fragrance. Brands have been successful reaching new users with this service because they can buy mobile video pre and post roll advertising accurately targeted by demographics. In addition, brands specify frequency caps, thus preventing waste. 3’s big selection of news, comedy, celebrity gossip, animations and film has further helped aid rapid adoption of the service.

3 Marketing Director, John Penberthy-Smith said, “Customers love the great content we offer and are happy to watch the short video ad before the video clip because the ad is targeted at them, making the experience all the more engaging. Customers who watch mobile videos are expressing high levels of satisfaction with the service.”

Rhythm Chief Executive Officer, Ujjal Kohli said, “Seeing the rapid adoption of mobile video consumption on 3 UK’s network solidifies our prediction that users truly enjoy consuming bite-sized video snacks on their phone.”

About 3
3 is a mobile media company delivering a convergence of communications, entertainment and information to customers on the move.

The three areas which form the core of its business are:

• Communications including all forms of personal communications, voice and video calling; text, picture and video messaging; and mobile blogging
• Entertainment including television, music audio and video, computer games, and media publishing
• Information services including wireless web, access to the best of the internet and a range of news services

3 UK is a member of the HWL group of 3G companies, which include 3G operations in Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy, Sweden and soon Norway.

Three facts about 3:

• 3, a mobile media company, launched the UK’s first 3G network
• 3 has over 4.1 million customers in the UK and over 15.9 million worldwide (August 2007 figures)
• The 3 network offers national coverage for calls and texts, and over 90% population coverage for 3G services.

About Rhythm NewMedia
Rhythm NewMedia offers turnkey mobile advertising solutions, including video, games and banners. Rhythm’s offering includes ad serving, ad sales and content sourcing. Rhythm’s patent-pending ad platform enables broad reach, sharp targeting, precise frequency management, high customer satisfaction, extensive reporting and automation of business processes. Rhythm provides unique real-time measurement of ad effectiveness and customer satisfaction. Leading mobile operators 3-UK, Telecom Italia and T-Mobile UK are currently using Rhythm’s solution, with several more coming.

Rhythm is also working with top brands, content providers and advertising agencies worldwide. Investors include The Carlyle Group, Lightspeed Venture Partners, Morgenthaler Ventures and Rembrandt Venture Partners.