blinkx PLC Announces Results for the Six Months and Period Ended 31 March, 2008

blinkx PLC Announces Results for the Six Months and Period Ended 31 March, 2008

blinkx Surpasses First Year Business, Financial and Technology Milestones Set at IPO

blinkx's Interim Period Conference Call Will be Webcast Live at www.blinkx.com on 15 May 2008, at 9:30 a.m. GMT/4:30 a.m. EDT/1:30 a.m. PDT.

CAMBRIDGE, England and SAN FRANCISCO, May 15/PRNewswire-FirstCall/ -- blinkx PLC (BLNX.L), the world's largest video search engine,
today reported financial results for the period ended 31 March 2008.

Financial Highlights

Period from
23 April
2007
6 months (incorp.)
ended to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000

Revenue 3,593 6,545
Gross profit 2,719 4,903
Loss from operations
before demerger / IPO costs * (4,553) (6,841)
Loss for the period
before demerger / IPO costs * (3,201) (4,608)
Loss for the period (3,201) (16,063)

Loss per share (cents)
Basic (1.15) (6.30)
Adjusted * (1.15) (1.81)

Cash used by operating activities
excluding demerger /IPO costs** (4,371) (6,418)
Cash used by operating activities (4,371) (12,788)
Cash balance as at 31 March 2008 39,436 39,436

* excludes demerger / IPO costs of $11.5m
** excludes demerger / IPO costs. See page 7

Highlights:

- Financial results: revenues and results for Half ending
March 2008 from operations in line with analyst expectations.

- Company ahead of plan in move towards profitability

- Content hours more than tripled since IPO, from 7 million to 26 million

- Daily Video Search run rate of over 5,000,000 per day in March 2008

- 56.1 million unique visitors and 584 million page views through the
blinkx network in March 2008 (source: comScore)

- 175% growth in content partner base to over 350 media organizations,
including BBC iPlayer, CBS, Channel 5, The Guardian and The Weather
Channel

- Addition of top-tier syndication partners, including Ask.com, Real
Networks, and Infospace

- Introduction of four new strategic technology offerings:
- blinkx BBTV
- blinkx beat
- blinkx AdHoc
- Native language search

- Successful execution of campaigns for leading advertising
agencies including OMD, MediaCom, Universal McCann and Initiative
Media.

- Collaboration with media futures unit of Publicis Groupe,
S.A. on higher-performance video-based advertising format

- Key hires in Sales and R&D to drive growth

Commenting on the interim results Suranga Chandratillake,
founder and CEO of blinkx, said:

"We are pleased to report a strong performance throughout this
period; blinkx surpassed all of the business, financial and technology goals
set at IPO. We signed key strategic partnerships, including Ask.com,
InfoSpace and RealNetworks, that have established blinkx as the gold standard
for TV and video search on the Web; we have substantially expanded our index
of content, adding high-profile media companies such as CBS, the BBC iPlayer
and Channel 5; and according to Hitwise, we have achieved the fastest
visit-share growth in the Online Video website category with an increase of
625% between March 2007 and March 2008. In addition, we introduced three
strategic product offerings to our technology portfolio, which will drive
distribution and advertising revenue worldwide. Throughout the year, we have
cemented our position as a leader in online television and video."

Mr. Chandratillake continued: "This is the era of the Rich
Media Web: broadband proliferation has driven dramatic growth in the online
television and video audience -- in fact, traffic to video-sharing sites
doubled in 2007. blinkx has a unique advantage in this new universe because
our technology was built from the ground up to navigate rich media, and
understands video and audio more deeply than any other solution today, and
therefore we're able to evolve strategically and with tremendous agility to
respond to external market trends.

This is a nascent, dynamic industry but we're already seeing
important trends emerging. First, and as expected, the world's leading brands
are showing a distinct reluctance to risk hard won brand values by
associating them with amateur, user-generated content. We are particularly
encouraged by the opportunities around professional content which provide
good and profitable revenue opportunities. We have found that there is a
sweet spot in high-volume, professionally produced content and brand
advertising: it brings together self-selecting demographic audiences with
brands and products relevant to their interests and lifestyles. There is an
enormous amount of this kind of specialized content on the Web, but typically
it is massively dispersed and therefore ideally suited to blinkx's search
technology. blinkx's strength in this area in 2008 has allowed us to consider
a model which will afford us the possibility of break-even earlier than
anticipated.

blinkx is a catalytic force for television and video on the
Internet, and with the introduction of ground-breaking new solutions like
blinkx Broadband Television and the blinkx AdHoc platform, we are ideally
positioned to capitalize on the tremendous opportunity that exists in online
content, search and advertising."

Financial Highlights

For the second six months period 2008 ending 31 March 2008,
revenues totalled $3.6 million. Revenues for the fiscal period, from 23 April
(incorporation) ending 31 March 2008, totalled $6.55 million. Gross profit
for the six months ending 31 March 2008 was $2.7 million, representing a
gross margin of 76%. Gross profit for fiscal period 2008 was $4.9 million,
representing a gross margin of 75%. Net loss for the second half was $3.2
million. Net loss for the fiscal period, before one-off costs related to the
IPO and demerger, was $4.6 million. Losses including one-off costs related to
the demerger and IPO totaled $16.1 million. Loss per share for the second
half was 1.15 cents. Adjusted loss per share for fiscal period 2008, before
one-off costs related to the IPO and demerger was 1.81 cents. Loss per share
including one-off costs related to the demerger and IPO was 6.30 cents.
During the fiscal period blinkx raised $50.4 million in gross proceeds from
an initial public offering completed on 22 May 2007. Cash balance at 31 March
2008 was $39.4 million.

Customer and Business Developments

Since its IPO in May 2007, strong demand for blinkx's unique,
patented search functionality has established blinkx as the gold standard in
video search, and today it powers many of the most popular sites and portals
on the Internet. Through these strategic partnerships and increased consumer
visibility, visit share increased 625% from March 2007 to March 2008
(Hitwise), and the number of unique visitors reached a record 56.1 million in
March 2008 (comScore). High-profile new syndication customers include
Ask.com, RealNetworks and InfoSpace.

blinkx's content platform also garnered tremendous interest
from media companies, and its roster of top-quality content providers has
grown to over 350 (around 175% growth since IPO), including programming from
premier media companies and broadcasters, such as the BBC iPlayer, CBS,
Channel 5, The Guardian and The Weather Channel.

In addition, blinkx increased its pan-European online
television and video reach with the addition natural language search and
content partnerships with premier broadcasters such as Deutsche Welle,
EuroNews and France 24.

blinkx's index of fully searchable online video has now
surpassed 26 million hours, more than tripling in the last 12 months.

Product and Technology Developments

blinkx continued a tradition of building and delivering
disruptive, first-to-market technology, expanding its product portfolio
aggressively during the period, with specific highlights including the launch
of blinkx AdHoc in June 2007, and blinkx Broadband Television (BBTV) in April
2008.

blinkx BBTV is a significant advance in online television that
leverages patented speech and visual recognition technology to simultaneously
deliver a high-quality television experience over the Internet, and link it
to the universe of information on the Web, adding dimension and context to
the viewer's experience. With hybrid peer-to-peer streaming and a simple,
point-and-click channel interface, blinkx BBTV delivers a new kind of online
television: full-screen, TV-quality and truly immersed in the Internet.

blinkx AdHoc is the world's first contextually relevant video
advertising platform optimized for the flourishing online video advertising
market, which is predicted to reach $7.2BN by 2012 (Forrester Research). Just
as Google's AdSense transformed advertising on the Text Web, blinkx's AdHoc
platform revolutionizes video advertising by matching compelling, customized,
TV-style ads to relevant content on the Web. AdHoc leverages blinkx's
patented speech-to-text transcription and visual analysis technology to
understand video content more thoroughly and effectively than any other
service today, and can therefore dynamically place the most pertinent
advertising against it. blinkx's AdHoc platform offers content partners and
advertisers a unique value proposition -- video advertising which combines
the emotive power of TV promotion, with the relevance and utility of
contextual search advertising.

In addition, blinkx announced the availability of blinkx Beat,
an innovative desktop application that allows users to stay up-to-date on the
latest sports, entertainment and breaking news videos from around the Web,
without ever having to search or open up a Web browser. blinkx Beat enables
users to create personalized news channels and custom video walls to watch
regularly updated videos about topics of their choice.

Company Developments

On the operational front, blinkx aggressively expanded
headcount to 52 employees and extended its bases of operations to include New
York, Chicago and Los Angeles, bringing on board key strategic hires to
support new engineering initiatives and drive business development. The
company continues to attract top engineers and specialists in content
acquisition, distribution and online video advertising who have proven track
records of success, and a wealth of contacts in the media industry.

During the period blinkx and its technological achievements
were honoured with a number of awards. blinkx.com was named one of Time
Magazine's 50 Best Websites for a second time in 2007, and was included in
The Observer's "Top 10 in Science and Innovation". The company was also
recognized as one of Business 2.0's "Disruptors: Companies that Will Change
the World".

About blinkx PLC

blinkx (London AIM: BLNX) is the world's most comprehensive
video search engine. Today, blinkx has indexed more than 26 million hours of
audio, video, viral and TV content, and made it fully searchable and
available on demand. blinkx's founders set out to solve a significant
challenge - as TV and user-generated content on the Web explode,
keyword-based search technologies only scratch the surface. blinkx's patented
search technologies listen to - and even see - the Web, helping users enjoy a
breadth and accuracy of search results not available elsewhere. In addition,
blinkx powers the video search for many of the world's most frequented sites.
blinkx is based in San Francisco and London. More information is available at
http://www.blinkx.com

BLINKX PLC

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

Results for the period from 23 April 2007 to 31 March 2008

(in thousands, except per share amounts)

Period from
23 April
2007
6 months (incorp.)
ended to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000

Revenue: continuing operations 3,593 6,545
Cost of revenue (874) (1,642)
Gross profit 2,719 4,903

Operating expenses
Research and development 1,858 3,171
Sales and marketing 4,707 7,273
Administrative expenses 707 1,300
Loss from operations before demerger / IPO costs* (4,553) (6,841)
Demerger / IPO costs - 11,455

Loss from operations (4,553) (18,296)

Investment revenues 1,102 1,983

Loss before taxation (3,451) (16,313)

Tax 250 250

Loss for the period attributable to equity
holders of the parent before demerger / IPO
costs * (3,201) (4,608)

Loss for the period attributable to equity
holders of the parent (3,201) (16,063)

Loss per share (cents) Cents Cents
Basic and diluted (1.15) (6.30)
Adjusted* (1.15) (1.81)

*Excludes demerger / IPO costs of $11.455 million

BLINKX PLC

CONSOLIDATED BALANCE SHEET (UNAUDITED)

As at 31 March 2008

(in thousands)

As at 31
March 2008

(unaudited)
$'000
ASSETS

Non-current assets
Intangibles 5
Property, plant and equipment 447
452

Current assets
Trade receivables 1,816
Other receivables 1,585
Cash and cash equivalents 39,436
42,837
Total assets 43,289

Current liabilities
Trade and other payables (2,022)
Total liabilities (2,022)

Net assets 41,267

Shareholders' equity
Share capital 5,483
Share premium 49,126
Stock compensation reserve 6,429
Currency translation reserve 516
Merger reserve (4,323)
Retained earnings (15,964)
Total Equity 41,267

BLINKX PLC

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

Results for period from 23 April 2007 to 31 March 2008

(in thousands)

Period from
23 April
2007
6 months (incorp.)
ended to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss from on-going operation * (4,553) (6,841)
Demerger & float costs - (11,455)
Loss from operations (4,553) (18,296)
Adjustments for:
Depreciation and amortization 117 263
Share based compensation 825 6,501
Foreign exchange gains (120) (123)
Operating cash flows before
movements in working capital (3,731) (11,655)
Changes in operating assets and liabilities:
Increase in trade and other receivables (489) (3,155)
(Decrease) / increase in trade and other payables (151) 2,022
Net cash used in operating activities (4,371) (12,788)

Non recurring share based compensation - (5,085)
Demerger / IPO costs - 11,455
Net cash used by on-going operating activities* (4,371) (6,418)

CASH FLOWS FROM INVESTMENT ACTIVITIES
Interest received 1,284 1,983
Purchase of property, plant and equipment (84) (715)
Net cash generated by investment activities 1,200 1,268

CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares - 50,384
Net cash generated by financing activities - 50,384

Net (decrease) / increase in
cash and cash equivalents (3,171) 38,864

Beginning cash and cash equivalents 43,610 -
Effect of foreign exchange on
cash and cash equivalents (1,003) 572
Ending cash and cash equivalents 39,436 39,436

* Excludes demerger / IPO costs of $11.455 million

BLINKX PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

For the period from 23 April 2007 to 31 March 2008

(in thousands)

Ordinary Redeemable Stock
share share Share compensation
capital capital Premium reserve Sub-total
$'000 $'000 $'000 $'000 $'000

Balance as
at 23 April 2007 - - - - -
Issue of shares 5,483 100 49,126 - 54,709
Capital contribution - - - - -
Shares redeemed - (100) - - (100)
Current period
losses - - - - -
Exchange differences
on translation - - - - -
Share based payments - - - 6,429 6,429

Balance as at
31 March 2008 5,483 - 49,126 6,429 61,038

sub-total Currency Merger Retained
forwarded translation reserve earnings Total
$'000 $'000 $'000 $'000 $'000

Balance as at
23 April 2007 - - - - -
Issue of shares 54,709 - (4,323) - 50,386
Capital contribution - - - 99 99
Shares redeemed (100) - - - (100)
Current period losses - - - (16,063) (16,063)
Exchange differences
on translation - 516 - - 516
Share based payments 6,429 - - - 6,429

Balance as at
31 March 2008 61,038 516 (4,323) (15,964) 41,267

BLINKX PLC

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

1. Basis of preparation

The financial information set out in the announcement does not
constitute the company's statutory accounts for the period ended 31 March
2008, within the meaning of Section 240 of the Companies Act 1985. The audit
of the statutory accounts for the period ended 31 March 2008 is not yet
complete. These accounts will be finalized on the basis of the financial
information presented by the directors in this preliminary announcement and
will be delivered to the Registrar of Companies following the company's
annual general meeting.

The information for the six months ended 31 March 2008, which
is unaudited, has been prepared by subtracting the results for the period to
30 September 2007, which were included in the company's interim announcement,
from the results for the period from 23 April 2007 to 31 March 2008.

2. Share-based payments

Included within operating expenses are the following amounts
in respect of share based payments:

Period from
23 April
2007
6 months (incorp.)
ended to
31 March 31 March
2008 2008

(unaudited) (unaudited)
$'000 $'000

Sales and marketing 318 546
Research & development 449 769
Administrative expenses 58 100
Demerger / IPO - 5,233
825 6,648

4. Taxation

An income tax credit of $250,000 is reflected in the income
statement in relation to research and development tax credits.

5. Loss per share

The loss per ordinary share and diluted loss per share are
equal because share options are only included in the calculation of diluted
earnings per share if their issue would decrease the net profit per share or
increase the net loss per share. The calculation is based on information in
the table shown below.

Period from
23 April
2007
6 months (incorp.)
ended to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000

Earnings
Loss (used in calculation of
basic and diluted loss per share) (3,201) (16,063)
Loss for the period excluding
demerger / IPO costs of $11,455k

(used in calculation of
adjusted loss per share) (3,201) (4,608)

Number of shares
Weighted average number of
shares since 23 April 2007 277,918,826 254,952,682

6. Share capital

Major movements in share capital in the period include the
issuance of 277,470,635 ordinary shares in relation to the demerger from
Autonomy Corporation plc and equity financing in May 2007. In addition as
part of the demerger process one redeemable share was issued in April 2007
which was subsequently redeemed in May 2007 prior to the demerger. Other
issuances of shares relate to the exercise of employee share options.

7. Related party transactions

There are no related party transactions.

8. De-merger from Autonomy Corporation plc

The demerger of the blinkx business from Autonomy Corporation
plc and its affiliates was completed on 21 May 2007. This was followed by an
IPO on the AIM market of the London Stock Exchange.

For further information please contact:

Financial Media Contacts:
Edward Bridges/Haya Chelhot,
Financial Dynamics,
Tel: (UK) +44(0)20-7831-3113;

Analyst and Investor Contact:
Matthew Service,
blinkx PLC,
Tel: (US) +1-415-615-1513;

AIM Nominated Adviser and Broker:
CFO Charles Lytle,
Citigroup Global Markets.

Source: blinkx PLC

For further information please contact: Financial Media Contacts: Edward Bridges/Haya Chelhot, Financial Dynamics, Tel: (UK) +44(0)20-7831-3113; Analyst and Investor Contact: Matthew Service, blinkx PLC, Tel: (US) +1-415-615-1513; AIM Nominated Adviser and Broker: CFO Charles Lytle, Citigroup Global Markets.

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