Ki-Bi Mobile Technologies Enters into Agreement with The Carphone Warehouse for Valentine's Promotion

TEL AVIV, Israel--Dec. 20, 2005--Ki-Bi Mobile Technologies Ltd ("Ki-Bi" or "the Company") the mobile content distribution specialist today announces a deal with the UK's leading mobile retailer, The Carphone Warehouse ("CPW"). Under the terms of the contract, Ki-Bi will provide CPW with 100,000 specially created CPW branded Ki-Bi cards.

The deal covers two specially created Ki-Bi card types. The first is an anonymous SMS Ki-Bi card whereby the purchaser will be able to use the card to send a selection of SMS chat up lines to the object of their affection, entirely anonymously. The second card is intended as a gifting opportunity; a purchaser will be able to customise the content on the card with a selection of their own recorded greetings and clues to their identity, before gifting the card to their choice of Valentine.

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 of their choice. An acoustic tone is played which triggers the download of content to the phone from the content server.

Richard Cohen, European Sales Director, Ki-Bi Mobile Technologies, said: "These two applications really demonstrate the versatility of the Ki-Bi platform. By offering these creative Ki-Bi treatments, The Carphone Warehouse will be able to put mobile content and communication at the heart of an enjoyable and romantic Valentine's experience."

Jonathan Hook, Strategic Development Director, The Carphone Warehouse, said: "These cards will give our customers a new and fun way of using their mobile as part of Valentine's Day. They can either send the object of their affection an anonymous chat up SMS or else they can give their Valentine a customised Ki-Bi card as a gift."

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.