Virgin Mobile to Trial Ki-Bi Cards in Retail Distribution of Mobile Content; Virgin Mobile to Trial Ki-Bi Cards with Selected Handsets in Q1 06

TEL AVIV, Israel--Dec. 5, 2005--Mobile content distribution specialist Ki-Bi Mobile Technologies ("Ki-Bi" or "the Company") announces that Virgin Mobile, the UK's leading mobile virtual network operator (MVNO) with more than 4 million customers*, is to bundle Ki-Bi cards with selected handsets to assess retail distribution of mobile content.

The Ki-Bi card is a physical device and server platform for the distribution of mobile content. To access content from a Ki-Bi card, customers simply dial the Ki-Bi service number, hold their card up to their phone and press the button relating to the content they wish to receive. An acoustic tone is played which triggers the download of content to the phone from the content server.

In the post-Christmas promotion period, Virgin Mobile will distribute Ki-Bi cards to purchasers of targeted handsets sold in its Virgin Mobile Stores (within Virgin Megastores). Virgin Mobile customers will be able to access mobile content such as ringtones, wallpapers, games and more. In addition, the cards will contain a button driving users to Virgin Mobile Bites, the company's suite of value-added services.

Richard Cohen, European Sales Director of Ki-Bi, said: "Virgin Mobile is one of the most dynamic and exciting operators in the UK, and this project demonstrates its position as one of the market leaders in consumer innovation. Also, this is an affirmation of Ki-Bi's strategy in assisting mobile operators and content aggregators to find alternative methods of reaching out to their subscriber base."

John Conlon, Marketing Manager of Virgin Mobile, said: "the Ki-Bi cards are a great tool for facilitating the consumer download of mobile content. We know there's an appetite for this content out there and the Ki-Bi cards are an innovative way of introducing consumers to it in an easy-to-use manner. By bundling the cards with selected phones we are introducing new customers to mobile content with a view to encouraging their ongoing usage."

About Ki-Bi Mobile Technologies Ltd.

Ki-Bi provides innovative technological solutions for physical distribution and marketing of content and applications for mobile handsets. The Company's business model is based upon the sale of electronic content cards ("Cards") and sharing of the revenues from the content distributed through the Cards. Ki-Bi has been a portfolio company of Siemens Acceleration since September 2003, and became publicly traded on AIM in London in May 20, 200605 (LSE: KIB).

Content such as ringtones, music, video and games for mobile handsets, is currently distributed mainly by over-the-air downloads into handsets, but there are technological, logistic and marketing barriers to traditional physical distribution of such content via retail outlets. Ki-Bi provides a solution for the tangible distribution of mobile content based on a combination of proprietary consumer electronics devices and central management server systems.

The Ki-Bi card, with its high perceived value and mass market appeal, is specifically designed to lead mobile content product categories in the retail and promotional space. During the past two years, Ki-Bi has established relationships with global leaders in the mobile market such as Motorola, Ericsson, Orange, O2, Sun Microsystems, Siemens and others. For more information, please visit www.ki-bi.com .

About Virgin Mobile:

Virgin Mobile Holdings (UK) plc is the UK's largest mobile virtual network operator, majority owned by Sir Richard Branson's Virgin Group and uses T-Mobile's network. Since its launch in November 1999, Virgin Mobile has attracted more than 4 million customers*.

In the UK, Virgin Mobile phones are available direct on 0845 6000 600; on the web at www.virginmobile.com or on the high street at approximately 5,000 outlets including Virgin Mobile Stores within Virgin Megastores, The Carphone Warehouse, The Link, Dixons, Phones 4U, Curry's, Comet, Tesco, Asda, John Lewis, Argos, TOMO, Woolworths, WHSmith, Toys R US and Ryman, plus hundreds of independent mobile phone dealers. These phones are also available via Shop Direct, Littlewoods, Grattan and Empire home shopping channels.

Virgin Mobile Pay Monthly is currently available in selected Virgin Mobile Stores, at its concessions within WHSmith, The Carphone Warehouse, The Link and at www.virginmobile.com

Virgin Mobile employs approximately 1,400 staff at three sites: Trowbridge, London and Daventry, and has an outsourced customer service centre operated by approximately 200 staff in Middlesbrough.

Virgin Mobile's customers were found to be the most-satisfied mobile consumers in the pre-paid sector for two years running (2004-2005), according to surveys by J.D. Power and Associates. Virgin Mobile is also featured in `The Sunday Times 100 Best Companies to Work For' list for 2005, and is part of the FTSE4Good Index.

*On a 90-day activity basis