N@N

LENCO MOBILE INC. Announces Conversion of Debt to Equity

^{Published on 2010-06-21 16:50:45 - Market Wire}
 

SANTA BARBARA, Calif.--([ BUSINESS WIRE ])--Lenco Mobile Inc. (Pink Sheets: LNCM) today announced that it has converted approximately $2.8 million of short-term debt to common stock.

"With the support of Rendez-Vous Management Limited, we believe we are well positioned to grow significantly over the next twelve months"

Michael Levinsohn, CEO and President of Lenco Mobile Inc., announced that the company has converted approximately $2.8 million of promissory notes, plus the related accrued interest on the notes, into 828,662 shares of Lenco Mobile Inc.a™s common stock. aThe conversion of the notes into common shares strengthens our working capital position and is indicative of the confidence in our strategy and expanding operations. We continue to increase revenues and expand our global footprint and the conversion of the debt into equity positions us well to further accelerate our growth,a said Levinsohn.

Approximately $1.27 million of the debt converted to equity consisted of a loan by Rendez-Vous Management Limited to Lenco Mobile Inc. Rendez-Vous Management Limited previously committed to provide up to $5 million of capital of which approximately $3.73 million remains to fund Lenco Mobile Inc.a™s expansion into the high growth Asian and Latin American markets. aWith the support of Rendez-Vous Management Limited, we believe we are well positioned to grow significantly over the next twelve months,a said Levinsohn.

Lenco Mobile Inc. is continuing the application process to have its common stock listed for trading on the Nasdaq Capital Market, which the company hopes to conclude soon.

About Lenco Mobile Inc.

Lenco Mobile Inc. owns and operates businesses focused on the high growth mobile marketing and Internet sectors. Lenco Mobile Inc. owns Multimedia Solutions, AdMax Media Inc., Digital Vouchers and CellCard. Multimedia Solutions, based in South Africa, provides MMS message solutions to wireless carriers and brand owners using its proprietary MMS messaging platforms. The MMS messaging platform provides significant benefits for wireless carries including improved messaging throughput, better quality and reduced bandwidth usage on a per message basis. The Multimedia Solutions platform is offered as a managed service, thereby reducing upfront capital costs for wireless carriers. AdMax Mediaa™s services include a full suite of online performance marketing, search engine optimization and lead generation tools. Admaximizer.com is a real time campaign management platform for online advertising that enables advertisers to obtain the best response to their campaigns. The AdMaximizer platform manages the creation and display of online campaign materials such as banner advertisements, landing pages and email offers by using campaign performance related data, keyword search listings, and search engine optimization components. Digital Vouchers is a mobile phone and Internet marketing platform under development which is designed to enable brand owners to extend offers to consumers which can then be redeemed via mobile phones at point of sale in a retail outlet. CellCard is a software platform under development that is designed to provide brand owners with the ability to download mobile content such as a video clip to a mobile phone and also provides a mobile payment platform which can be used to pay for goods and services, either person to person or person to business.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Actual results may differ materially from those contained in the forward-looking statements in this press release. Neither Lenco Mobile Inc. nor any company mentioned in this release undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.