TIDMESG

RNS Number : 4423S

eServGlobal Limited

21 November 2011

eServGlobal Limited (eServGlobal or the "Company")

Notification of Resolution of Claim on Escrow Amount

21 November2011

Settlement with Oracle

eServGlobal (ASX:ESV, AIM:ESG), a global provider of Mobile Money and Value Added Services, today announces the full resolution of the claim made on the escrow amount relating to the sale of its USP business to Oracle Corporation Australia. As part of the resolution, Oracle will release the full A$11.5M claim to eServGlobal and eServGlobal has agreed to pay for services delivered by Oracle as provisioned for by the Company in its FY2011 financial accounts.

During 2010, eServGlobal sold its USP business and assets to Oracle for A$106.7M prior to purchase price adjustments of A$3.6M. The Company received an initial payment of A$79.4M with the balance of A$23.6M held in an interest-bearing escrow account. A$11.8M excluding accrued interest was due to be released from escrow on the first anniversary of the completion date, with the remainder to be released after the second anniversary. Prior to the release date for the first escrow amount, a claim of A$11.5M was made by Oracle. Funds not covered by the claim were released as per the original terms of the sale.

On 20 November 2011, both parties entered into a joint Settlement Agreement and release. The Agreement fully settles the claims without any admission of liability from either party. Moreover, the Agreement will operate as a bar to all further claims arising out of or related to the Dispute.

The terms of the Agreement are confidential; however, eServGlobal will receive the full first year's escrow disbursement and associated interest. As provided for in the FY2011 financial statements, the Company will pay Oracle for services rendered. The settlement reached is for an amount lower than the provisions made by the Company in the financial year ending June 30 2011.

Oracle and eServGlobal have been partners for many years, and this long-standing relationship enabled the two organizations to amicably resolve the dispute without the need for a formal legal procedure. Both companies are pleased with the settlement and continue to work well together in the support of common clients and in the pursuit of new business together. Their shared priority is to continue to deliver outstanding service to their clients now and in the years to come.

About eServGlobal

eServGlobal Limited specializes in Mobile Money solutions and Value-Added Services (VAS), to help Mobile Service Providers increase their revenue and gain and maintain customer ownership. eServGlobal invests heavily in product development, using carrier-grade, next-generation technology and aligning with the requirements of more than 75 customers in over 45 countries.

For more than 25 years mobile, fixed, Internet and telecom providers have used eServGlobal solutions to lead and innovate in their local markets, leveraging their core assets and their trusted agent and subscriber relationships.

With 13 offices globally, eServGlobal provides full "end-to-end" and "any account to any account" Mobile Money Services and International Remittance Services. eServGlobal's HomeSend solution is the only mobile-centric international remittance hub to gain endorsement from the GSM Association.

eServGlobal's Value-Added Services in promotions, loyalty and messaging enable service providers to engage with their subscribers in a personalized and dynamic manner.

To reduce time-to market and to meet the needs of operators and banks, eServGlobal provides multiple licensing alternatives as well as SaaS-based products and services.

eServGlobal is listed on the Australian Securities Exchange (ESV) and the London Stock Exchange AIM (ESG). More information at: www.eservglobal.com

For further information, please contact:

 
 eServGlobal                                  www.eservglobal.com 
 Tom Rowe, Company Secretary                  T: +61 (0)7 3302 0194 
  Info@eservglobal.com 
 Cenkfaos Securities plc                      www.cenkos.com 
  IvonneCantu/Stephen Keys (Nomad)             T: +44 (0) 20 7397 8980 
 Threadneedle Communications                  www.threadneedlepr.co.uk 
  Caroline Evans--Jones/Josh Royston/Hilary    T: +44 (0) 20 7653 9850 
  Millar

This information is provided by RNS

The company news service from the London Stock Exchange

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