GOWEX OBTAINS AN ANNUAL TURNOVER OF 66.7 MILLION EUROS IN 2011

  • GOWEX enjoys a strong organic growth of 34% comparing with 2010 exercise
  • The company values positively this figure since the financial and sales objectives are achieved

Madrid, 21st of February 2012-.GOWEX (GOW-MAB, ALGOW-NYSE Euronext), worldwide leader in the creation of WiFi Smart sustainable cities, records a turnover of 66.7 million Euros as for 2011, fully based on an organic growth of 34% comparedto the 2010 exercise. This information adjusts to the goal forecasted for this period.Company sales and financial objectives are achieved.

This 2011 remarkable growth has been driven by the cities and the proprietary technology demand in combination with the exclusive business models displayed to the Wireless Smartcities in GOWEX WiFi new cities. On the other hand, GOWEX’s international growth; reinforced with municipality’s agreements, transportation companies or private partners and telecommunication carriers explain this growth.

Consolidated 2011 sales
In million Euros, up to 31 st of December / 2011 / 2010 / % Variation
2011/2010 / Sales Distribution 2011
GOWEX Telecom
(See attached)* / With dealership* / 48,3 / 27,0 / 79%
Without dealership* / 20,2 / 23,0 / -12% / 30%
GOWEX Wireless / 46,5 / 26,6 / 75% / 70%
Consolidated Sales / 66,7 / 49,7 / 34% / 100%

Turnover by business models

The business volume of GOWEX as for, Gowex TELECOM,thehistorical activityof the Group, amounts to20.2 million Euros thusrepresenting 30% of total sales distribution (46.2% in 2010). As a reminder, this activity does not include anymore revenues and expenditures of the brokering services activity. The turnover would have been of 48.3 million Euros (instead of 27 million Euros) taking into account the former accounting policy (See attachment).

As for the main business activity of the Group, GOWEX Wireless turnover has significantly increased of 75% in 2011, with a 46.5 million Euros in contrast to last year’s 26.6 million Euros in 2010 and a total sales distribution of 70%. Thanks tothe network effect, created by interconnecting our 60 cities and transportation companies (at the end of 2011) and the strategic agreements submitted with main actors in the engineering world to create wireless Smartcities, and also supported by growth of the offloading and roaming business and the rest of recurrent services incomes, GOWEX has reached these figures.

Evolution based on an international success

At the 31st of December of 2011, the total number of cities and transport companies with WiFi coverage rose up to 60 comparing to the 35 cities in 2010, representing a notable growth. This total number has almost doubled in one year, making it possible that the WiFi Smartzones” can be connected to Internet by a potential 50 Million population.

The growth of the company’s turnover shows that the Groupis well placed for the development, implantation and deployment of its WiFi networks. This performance also showsto the the company’s savoir-faire when it comes to developing services matching the needs of the inhabitants.

A perfect orientation and fittings for next year exercise

Withthis strong company’s organic growth during 2011 and the closed agreements with other important partners in the internet world, like recent agreement accomplished with Skype, GOWEX is confident to maintain a sustainable growth for 2012.

* Attached

The Board of Directors of Let's Gowex, SA at its meeting held on April 29, 2010 agreed to conduct any necessary or appropriate negotiations, agreements, arrangements and procedures, internal and external to the company, in order to eliminate the accounting and reporting of amounts included in the Income and Expenses arising from Gowex Telecom brokerage activity.

Gross margin obtained by Let's Gowex, S.A. in its normal activity is not affected and from this, none of the other magnitudes of the Profit and Loss account which depend on the gross margin, which is determined primarily by the net result of the sale of services value plus the commissions earned by the intermediary services.

On the other hand, the amount of Assets and Liabilities on the Balance Sheet of Let's Gowex, SA will be reduced by the amount of capacity service concepts which have been billed and were receivable and to be paid.

About GOWEX (GOW-MAB, ALGOW-NYSE Euronext)

GOWEX (GOW-MAB, ALGOW-NYSE Euronext) has been 12 years operating in the Telecommunication sector and it’s currently leading the creation of WiFi Cities offering Free & Premium WiFi connectivity in streets and transportation. The coverage of the company extends today to more than 60 cities national and worldwide, thanks to agreements with Public Administrations, Franchises, Associations and Transportation.

In all the WiFi cities GOWEX works to create Wireless Smartcities® (WiFi Smartcities) launching free wireless internet that improves the citizen’s services with wireless connectivity: online home electric meters, traffic lights control, public transportation fleet management or CCTV etc.

“The Street WiFi is a new communication channel for citizens and their success can be seen in our WiFi Networks growth which has reached 15%” affirms Jenaro García CEO de GOWEX

In 2010, it has become the first and only Spanish SMB to make a “dual listing”, publicly traded in the MAB (GOW) and the NYSE-Euronext (ALGOW). The company's total revenue in 2010 amounted to 49 million euros. On July 2011 GOWEX subscribed a 7 million € capital increase with a 100 % over-demand (doubling expectations).

With offices in Madrid, Burgos, Buenos Aires, London, San José (Costa Rica), Paris and Shanghai, GOWEX develops a sustainable business model in their WiFi networks, based in efficient and technical quality of their patented platforms: The Roaming platform, which allows users to connect freely in all the cities, the Geolocalization Content and Advertisement platform, which provides a financing business through marketing and advertisement agreements.

In 2011, GOWEX joined the Wireless Broadband Alliance and received a prize for the “Best Web Company” in the Internet Day.

Contacts :

Lets GowexAurel BGCActifin

Florencia MateNicolas Martin Nicolas Meunier

+34 9 13 60 14 70 +33 (0) 1 53 89 73 17 + 33 (0) 1 56 88 11 11

n

Charlène Masson

+ 33 (0) 1 56 88 11 11