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blinkx Plc Announces Placing Price of 45 Pence Per Ordinary Share

Cambridge, UK - 22 May 2007 - Blinkx plc (“Blinkx” or the “Company”) today announces that the placing price for the private placing of new ordinary shares (the “Placing Shares”) to institutional investors in the UK and Europe (the “Placing”) has been set at 45 pence per ordinary share (the “Placing Price”).  This gives the Company a market capitalisation of £125 million (approximately $247m).

The Placing comprises 56,444,444 new ordinary shares, which represents in aggregate approximately 20% per cent of the Company’s issued ordinary share capital following the issue of the 21,931,383 new ordinary shares to be issued to Autonomy pursuant to the Demerger Agreement (the “Issue Shares”) and the Placing Shares.  The gross proceeds of the Placing to be received by Blinkx from the issue of new ordinary shares are £25 million (approximately $50m).

Dealings in the Demerger Shares are expected to commence on the AIM market at 8.00am BST today under the ticker symbol BLNX.  Dealings in the Issue Shares and the Placing Shares are expected to commence tomorrow at 08:00am.

Commenting on today’s announcement, Suranga Chandratillake, Chief Executive Officer of Blinkx, said:  “We are clearly delighted that the initial interest in Blinkx has been converted into strong demand, with the Placing being strongly oversubscribed and pricing at the top end of the range.  Judging from the level of corporate activity among the large internet and content brands both in the US and internationally, it is clear to us at this stage that video is the web’s next area for significant investment and development.  With over 13 million indexed hours of video content from thousands of diverse sources, including content from over 130 content partners, Blinkx is, by our estimates, well positioned as the world’s largest video search engine in terms of indexed hours of content.”

Mr Chandratillake concluded:  “Our leadership in the online TV search market places us at the heart of this exciting and fast growing segment of the web, providing the critical link between the consumer audience and the fragmented reality of content ownership and distribution across the internet.  We now begin life as a public company with the balance sheet to match our operational strength, and we look forward to the continued development of our business against the backdrop of the rapidly accelerating online television market.”

Summary of the Placing:

Placing Price: 45 pence
Number of ordinary shares in the Placing: 56,444,444
Total number of ordinary shares in issue immediately following the Placing and the Issue: 277,470,635
Gross proceeds receivable by the Company: £25 million (approximately $50 million)
Market capitalisation at the Placing Price: £125 million (approximately $247 million)

Autonomy and Dr Mike Lynch have separately retained significant shareholdings in Blinkx representing approximately 10 per cent and 8.7 per cent respectively of the Company following Admission and have undertaken (subject to certain exceptions) not to sell their remaining holdings for at least 360 days.

All U.S. dollar amounts are based on the noon-buying exchange as published by Federal Reserve Bank of New York for Pounds Sterling on 18 May 2007 of $1.9755 for each £1.00.

Significant Shareholders

As at 21 May 2007, save as set out below, the Directors were not aware of any persons who, immediately following admission of the Placing Shares, will be interested in 3% or more of the issued share capital of the Company:

Fidelity: 11.5%
Autonomy Corporation plc: 10.0%
Dr Michael Lynch: 8.7%
Capital Research & Management: 5.4%
F&C: 5.4%
Standard Life: 4.1%
Baillie Gifford: 4.1%
Oppenheimer Funds: 3.1%
BlackRock: 3.2%


Financial Media Contacts:

Edward Bridges/Haya Chelhot
Financial Dynamics
+44 (0)20 7831 3113

Mark Fisher
+44 (0)20 7986 8525

Charles Lytle
+44 (0)20 7986 0519

Analyst and Investor Contacts:
Suranga Chandratillake, Chief Executive Officer
Blinkx plc
+1 (415) 848-2986

Important Notices

This announcement is not an admission document and investors should not subscribe for or purchase any shares referred to in this announcement except on the basis of information in the admission document (the “Admission Document”) published by Blinkx plc in connection with the admission of ordinary shares (the “Ordinary Shares”) in the capital of Blinkx plc to trading on the London Stock Exchange plc’s AIM market (the “Admission”). Copies of the Admission Document are available from Blinkx plc’s registered office.

Capitalised terms used in this announcement shall have the same meaning as in the Admission Document.

The contents of this announcement, which has been prepared by and is the sole responsibility of the Company, have been approved solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 by Citi of Citi Centre, Canada Square, London E14 5LB.

Citi which is regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for Autonomy and Blinkx in relation to the Demerger and exclusively for Blinkx as global co-ordinator, nominated adviser and bookrunner in connection with the Placing and proposed application for admission of the Company’s shares to trading on the AIM market of the London Stock Exchange plc. Citi is not acting for any other person in connection with the Demerger, the Placing and proposed application for admission to trading on AIM and will not be responsible to any other person for providing the protections afforded to customers of Citi, or for advising any other person in connection with the Demerger, the Placing and proposed application for admission to trading on AIM.

The information contained herein is not for publication or distribution in the United States, Canada, Australia or Japan. This announcement does not constitute or form part of an offer to sell or issue, or any solicitation of an offer to buy or subscribe for any securities referred to herein. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, (the “Act”) and may not be offered or sold, directly or indirectly, in or into the United States absent registration under that Act or an available exemption from it. The Company and the selling shareholders do not intend to register the securities or conduct a public offering in the United States.

Securities in Blinkx have not been and will not be registered under the applicable securities laws of Australia, Canada, or Japan and, absent appropriate exemptions may not be offered or sold within Australia, Canada, or Japan or to, or for the account or benefit of, citizens or residents of Australia, Canada, or Japan.

The Placing and the distribution of this announcement and other information in connection with the Placing in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities and any purchase of or application for securities of the Company pursuant to the Placing should only be made on the basis of the information contained in the Admission Document. The price and value of securities may go up as well as down. Persons needing advice should contact a professional adviser.

This announcement includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industry.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, the factors to be described in the risk factors section of the Admission Document and the factors to be described in the operating and financial review section of the Admission Document.

Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement reflect the Company’s view with respect to future events as at the date of this announcement and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s operations, results of operations, growth strategy and liquidity. Save as required by law or by the Listing Rules, Disclosure and Transparency Rules or Prospectus Rules of the Financial Services Authority, the Company undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

Information in this announcement or any of the documents relating to the Placing cannot be relied upon as a guide to future performance.