LONDON, Aug 15, 2008 (BUSINESS WIRE) ----ROK Entertainment Group Inc. (OTCBB:ROKE), the global mobile entertainment group, announces its financial results for the first fiscal quarter ended June 30, 2008.

ROK has continued to develop its revenue-generating mobile product portfolio, comprising over 40 applications, from high-quality mobile TV streamed live and on-demand over mass-market mobile networks and the internet, to the storage of copy-protected video content for play on mobile devices, through mobile Voice over Internet Protocol (mVoIP) technologies, mobile social networks, data compression services, mobile conference-calling services and an advertising funded e-mail service for mobile users. It currently has corporate operations in the United Kingdom, the Peoples Republic of China, the United States and South Africa which are all active, as well as joint ventures in Russia, Brazil and Pakistan.

Building on the solid foundations laid during FY2008, the further milestones achieved this quarter and post period-end have strengthened ROK's position as a leading provider of innovative multimedia content solutions, based on patented and patent-pending technologies, to mobile operators, handset manufacturers and consumers, worldwide. The Group's customers comprise major global players in the mobile market space including Nokia, Telenor, Samsung, Vodacom, AIS, BSNL, Airtel and China Mobile, as well as companies outside of the telecommunications sector such as Claire's Accessories in the UK retail industry and Bauer in the publishing sector.

Since inception, ROK has concentrated on developing a broad portfolio of mobile technologies, services and applications and, as an expected result, has had limited revenue from the sale of products and services. Revenues for Q1 2009 are $1.0m (2007: $0.6m), representing an increase of 73%. Its net losses for the quarters ended June 30, 2008 and 2007 are $20.9m, of which $14.6m was a charge made during the quarter for stock-based compensation in accordance with US GAAP, and $4.5m, respectively, and its accumulated deficits as of June 30, 2008 and 2007 are $98.9m and $78.0m, respectively. ROK expects to increase its spending significantly as it continues to expand its infrastructure and its sales and marketing efforts, and continue research and development. As a consequence of this, ROK expects to raise additional financing to achieve its operating goals.

The Group experienced strong operational performance this quarter, alongside the focus on capital raising. Notable developments include the acquisition of IPTV company Jalipo, which offers live streaming of TV content over the internet; the addition of its mobile TV service, ROK TV, and its mobile conference-calling service, ROK Talk, to Telenor's 'Playground'; offering the works of Spike Milligan to mobile users via www.spike-milligan.com and the Group's subsidiary, ROK Comics, adding Roy of the Rovers to its comics for mobile download; and partnering with South African Airways, Tanzania Broadcasting Corporation, Vodacom and Motorola in the search for a Global Soccer Star in Tanzania, which by July 29 had conducted trials with 10,000 aspiring football players in Tanzania with thousands more lined up.

During the quarter, the Group's subsidiary, ROK Diamonds Limited, entered into a letter of agreement with Australian-listed Mineral Commodities Ltd for the purchase of Kariba Kono diamondiferous gravel dump in Sierra Leone, which would represent the first stage in the divestment of ROK Diamonds from ROK. The Group also disposed of its interest in Rock Group plc, a manufacturer of laptop PCs and TV/PC screens.

A key agreement entered into this year and implemented this quarter is for the provision of white-label mobile TV services, including content, for America Movil, which has mobile carrier operations in 16 territories across the Americas including Mexico. This should start commercial operations in Q4.

There have been several significant developments post period-end, including the deployment of ROK's News-on-Demand mobile video service through Ufone in Pakistan, and the launch of ROK's Push-In-Box mobile email service via its distribution partner YuuZoo, with the service being co-branded YuuROK. Delivering regular news updates via MMS, Ufone's Video News Service is already seeing substantial subscriber uptake whilst in just six weeks to the end of July, YuuROK had achieved almost 100,000 sign-ups. Advertising revenues are expected to grow considerably in Q3.

As a result of these acquisitions, agreements and extensions to its product and intellectual property portfolio, management believes that ROK is well-positioned for expansion over the rest of this year and beyond. The Group's achievements were recognized when its California-based subsidiary, Fun Little Movies, won the Content Award at the prestigious Mobile Entertainment Forum in Cannes, against competition including BBH, MTV Networks International, Orange Israel and Donna Productions.

Laurence Alexander, Group CEO, commented: "This quarter has witnessed continued momentum in operational performance and we have built upon the foundations laid last year. We have again increased our revenues like-for-like, established and furthered relationships with key global players in the telecommunications sector, enhanced our product and service offerings, which was helped by our strategic acquisitions, and strengthened our intellectual property portfolio. Our achievement is reflected in the Group receiving industry recognition in winning prestigious awards, launching new services and substantially growing our subscriber base organically. As a result, ROK is well-positioned for long-term growth with strengthened foundations from which we expect to continue to rapidly expand our user base worldwide. We look forward to the future with confidence." ROK ENTERTAINMENT GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands of dollars except for share data) (unaudited)

 Three Months Ended June 30, -------------------------- 2008 2007 ------------
   ------------ (unaudited) (unaudited) Sales Product sales $ 699 $ 275 Services and other 333 321 ------------ ------------
   Total sales 1,032 596 Operating expenses: Content and distribution 532 497 Product development 3,079 1,531 Sales and marketing
   expenses 1,274 1,872 General and administrative expenses 16,399 1,111 Depreciation and amortization 139 109 License fee payable
   to related party 256 - ------------ ------------ Total operating expenses (21,679) (5,120) Operating loss (20,647) (4,524)
   Interest income 1 16 Interest expense (386) (320) ------------ ------------ Operating loss before taxation (21,032) (4,828)
   Income tax benefit 268 238 ------------ ------------ Operating loss after taxation (20,764) (4,590) Minority interest 250
   75 Loss from continuing operations (20,514) (4,515) Loss from discontinued operations: Operating loss from discontinued (38)
   - operations Loss on disposal of discontinued (329) - operations ------------ (367) - Net loss $ (20,881) $ (4,515) ============
   ============ Basic and diluted loss from continuing $ (0.389) $ (0.146) operations per common share Basic and diluted loss
   from discontinued (0.007) - operations per common share ------------ ------------ Basic and diluted loss from continuing (0.396)
   (0.146) and discontinued operations per common share ============ ============ Basic weighted average shares outstanding 52,670,145
   30,886,442 ============ ============ 

ROK ENTERTAINMENT GROUP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands of dollars except for share data)

 June 30, March 31, 2008 2008 ----------- ---------- (unaudited) (audited)
   ASSETS CURRENT ASSETS Cash and cash equivalents $ 244 $ 1,319 Accounts receivable, net 9,250 9,405 Inventories 3 27 Prepaid
   expenses and other current assets 1,489 966 Due from affiliated companies 2,774 2,523 Current assets retained and relating
   to discontinued operations - 2,605 ----------- ---------- TOTAL CURRENT ASSETS 13,760 16,845 ----------- ---------- INVESTMENTS
   132 132 PROPERTY AND EQUIPMENT, net 982 751 GOODWILL 6,383 1,582 INTANGIBLE ASSETS, net 202 202 Property and equipment retained
   and relating to discontinued operations - 2,793 ----------- ---------- TOTAL ASSETS $ 21,459 $ 22,305 =========== ==========
   LIABILITIES AND SHAREHOLDERS' DEFICIT CURRENT LIABILITIES Accounts payable $ 10,928 $ 10,409 Accrued liabilities 9,973 8,944
   Due to affiliated companies 1,433 2,064 Due to related parties 5,451 1,390 Current portion of loans 475 937 Current portion
   of capital lease obligations 102 107 Current liabilities retained and relating to discontinued operations - 4,160 -----------
   ---------- TOTAL CURRENT LIABILITIES 28,362 28,011 ------------ ---------- LONG-TERM LIABILITIES Due to related parties 18,112
   19,869 Other long-term liabilities 1,276 1,569 Long-term liabilities retained and relating to discontinued operations - 512
   ----------- ---------- TOTAL LONG-TERM LIABILITIES 19,388 21,950 ----------- ---------- TOTAL LIABILITIES 47,750 49,961 MINORITY
   INTEREST (1,305) (1,618) SHAREHOLDERS' DEFICIT Common stock, $0.001 par value, 100,000,000 shares authorized; 54,144,331 and
   51,100,277 shares issued and outstanding at June 30, 2008 and March 31, 2008, respectively 54 51 Additional paid-in capital
   75,974 53,800 Accumulated other comprehensive loss (2,111) (1,867) Accumulated deficit (98,903) (78,022) ----------- ----------
   Total shareholders' deficit (24,986) (26,038) ----------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 21,459
   $ 22,305 =========== ========== 

About ROK Entertainment Group Inc.

www.rokent.com

ROK Entertainment Group Inc., founded in 2004, is a global mobile entertainment company.

With approximately 200 staff worldwide, ROK has filed 43 international patents (5 granted) for its suite of innovative mobile technologies.

With 3.3 billion mobile handsets in use worldwide, the mobile entertainment industry is forecast to become a multi-billion dollar business.

ROK TV enables the streaming of live and on-demand TV to mobile phones over mass-market 2.5G, as well as over 3G and Wi-Fi.

Forward-Looking Statement

The information contained in this new release, other than historical information, consists of forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those described in these statements. Forward-looking statements regarding the timing of developing, testing and releasing existing and new products, of marketing and selling them, of deriving revenues and profits from them, as well as the effects of those revenues and profits on the Group's margins and financial position, are uncertain because many of the factors affecting the timing of those items are beyond the Group's control.

SOURCE: ROK Entertainment Group Inc.

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