1 February 2012

MobileWave Group plc

("MobileWave" or the "Company")

Issue of Equity

The Board is pleased to announce that as a result of the ongoing investment in the Company by Dutchess Opportunity Cayman Fund Ltd ("Dutchess") announced on 06 October 2011 the Company is issuing a further 6,250,000 new ordinary shares in the Company to the Dutchess. Under the Investment Agreement entered into by the Company and Dutchess, Dutchess agreed to subscribe for up to £4.0 million of new ordinary shares in the Company over a period of three years.

Accordingly, application has been made for the 6,250,000 new ordinary shares to be admitted to trading on AIM and it is expected that admission will take place on 7 February 2012.

The new ordinary shares will rank pari passu with the existing shares of the Company. Following this allotment, the total issued share capital of the Company will increase to 91,082,769 ordinary shares.

For further information, please contact:

MobileWave Group plc                                                       rstear@mobilewave.com

Rory Stear, Chairman

Charles Stanley Securities                                                                     020 7149 6000                          

Nominated Adviser & Broker

Dugald  J.Carlean / Carl Holmes