HUG - Huge - Acquisition Of 25% Of Eyeballs Mobile Advertising (Proprietary)

HUG - Huge - Acquisition Of 25% Of Eyeballs Mobile Advertising (Proprietary)    
              Limited ("Eyeballs") And Withdrawal Of Cautionary Announcement    
HUGE GROUP LIMITED                                                              
(formerly Vanquish Fund Managers Limited)                                       
(Registration number 2006/023587/06)                                            
Share code: HUG & ISIN: ZAE000102042                                            
("Huge" or "the company")                                                       
ACQUISITION OF 25% of EYEBALLS MOBILE ADVERTISING (PROPRIETARY) LIMITED         
("EYEBALLS") AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT                          
1.   INTRODUCTION                                                               
Shareholders are advised that in terms of sale agreements signed on 27 March    
2008, Huge has acquired 2 500 ordinary shares of R1 each in the share capital   
of Eyeballs, representing 25% of the entire issued share capital of Eyeballs,   
from The Benson Trust, The 59 Kloofnek Trust and Nathan Lewin ("the sale        
transactions") for an undisclosed amount.  The effective date of the sale       
transactions is 1 January 2008.                                                 
2.   NATURE OF THE BUSINESS OF EYEBALLS                                         
Eyeballs Mobile is based in Cape Town, and has developed a unique media         
platform that delivers rich advertising content to GSM mobile subscriber        
handsets in an unobtrusive and non-invasive manner, providing an extremely      
attractive alternative to SMS and MMS advertising which are often seen as       
spam.  The technology developed by Eyeballs Mobile currently has intellectual   
property protection that provides it with a significant window of opportunity   
in the mobile advertising and media arenas.                                     
The mobile advertising medium has even greater significance in developing       
markets where Internet access is still limited.  In SA the mobile medium of     
cell phones has the ability to reach 80% of the population because of its       
pervasive presence as a communication medium.  Eyeballs have also developed an  
application called Ringads which offers advertisers measurability in terms of   
reach, frequency and target audience as well as a cost effective and bandwidth  
lean solution.  The application will facilitate transactional capability where  
the ability to earn revenue for each and transaction is possible.               
3.   RATIONALE                                                                  
Huge is of the view that the future prospects of Eyeballs and the synergies     
that it offers with existing opportunities within Huge are significant.  The    
technology developed by the founders of Eyeballs has created a unique           
offering, making it a leader and innovator in the mobile media space.           
Mobile media is expected to grow exponentially making it an incredibly          
lucrative market in the very near future.  The acquisition adds another         
valuable dimension to the telecommunications-based portfolio of Huge.  It       
represents the commitment of Huge to augmenting its portfolio of products and   
services with value-added new age technologies.                                 
In the 8 months since listing Huge has grown its revenue from early beginnings  
as a corporate voice service provider, to its current mix of a well-balanced    
portfolio of both consumer and corporate services - with revenues in excess of  
one billion rand.  Media is the next logical step for Huge, and is perfectly    
in line with international trends, where devices are expected to deliver an     
enhanced multimedia experience to the consumer.                                 
4.   CONDITIONS PRECEDENT                                                       
The sale transactions are subject to the following suspensive conditions:       
-    Completion by Huge of a due diligence investigation;                       
-    The injection of loan funding by Huge into Eyeballs in the amount of       
    R5 000 000 at Prime over a period of 60 months;                             
-    The entering into of a shareholders` agreement; and                        
-    The entering into of an option agreement in terms of which the vendors     
and the remaining shareholders of Eyeballs grant Huge the right but not     
    the obligation to acquire an additional 15% of the ordinary share capital   
    of Eyeballs at any time during the twenty four months that follow the       
    closing date of the sale transactions.                                      
5.   DOCUMENTATION                                                              
In terms of the Listings Requirements of the JSE Limited and especially with    
regard to companies listed on the Alternative Exchange, the transaction is not  
categorised, as the total value of the transaction equates to less than 5% of   
Huge`s current market capitalisation.  This announcement is therefore made for  
information purposes only.                                                      
The transaction is at arms length and does not require shareholder approval or  
a circular to be sent to shareholders.                                          
6.   WITHDRAWAL OF CAUTIONARY                                                   
Shareholders are referred to the cautionary announcement dated 11 March 2008,   
and are advised that as a result of this announcement the cautionary            
announcement in relation to this transaction is now withdrawn.                  
Woodmead                                                                        
27 March 2008                                                                   
Designated advisor                                                              
Arcay Moela Sponsors (Pty) Limited                                              
Date: 28/03/2008 08:22:59 Supplied by www.sharenet.co.za                     
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