Trading and Business Update

6 July 2016

Taptica International Ltd

("Taptica" or the "Company")

Trading and Business Update

Taptica (AIM: TAP), a global end-to-end mobile advertising platform for advertising agencies and brands, provides the following business and trading update for the six months ended 30 June 2016 ahead of its interim results to be announced in August 2016.

The period ended 30 June 2016 is the first full six months following the transition of the business to a mobile-centric offering and the acquisition of AreaOne. Taptica entered the current year in a significantly improved position as the Company's mobile offering continued to gain traction with its household-name clients and experienced increased new customer demand.

Since the trading statement announced on 11 May 2016, the Company has had a strong end to the first half and expects revenues for H1 2016 to have increased by over 47% to more than $50.0m (H1 2015: $33.9m), the highest for a six-month period in the history of the Company. As a result, the Company expects growth in full year revenues of over 45% in 2016 in line with market expectations as stated previously.

The Company's continued investment in technology is contributing to improved margins in its mobile business which, as an increasing percentage of Taptica's revenues, is improving overall gross margins. The mobile business continues to be the majority contributor to revenues and is expected to be approximately 132% higher than the equivalent period in 2015. The Company continued to experience better-than-previously-expected margins for the campaigns it was running for its clients. As a result, the Company now expects to report gross margins for the first half of approximately 34% compared with 26.4% in H1 2015. H1 2016 EBITDA is expected to be significantly higher than the equivalent period in 2015. On the current run rate, the Company expects adjusted EBITDA for FY 2016 to be approximately $18m representing a year-on-year growth in EBITDA of over 140%.

The Company has attracted increasing numbers of Tier 1 customers and major global advertising agencies, as well as increasing spend from existing clients, due to the Company's ability to utilise data and deliver effective targeted campaign across all devices and all channels including social media. The Company has also seen customers such as Sephora, Close5, Xoom and MeetMe adding social media to their marketing campaigns thereby increasing their spend with the Company.

The Company's growth is a result of its technology platform's ability to deliver 'user-centric marketing' which enables advertisers to not only know whether their ad had been seen, but also by whom, resulting in improved results, and subsequently repeat campaigns. This has enabled the Company to join up ad impressions over a variety of touch points and attribute these to a single anonymised user profile. Additionally, through AreaOne, Taptica's integration with the Instagram Ads API resulted in advertisers being able to run campaigns across the widest possible range of traffic sources available today, while leveraging Taptica's proprietary data.

Taptica will provide further details of the performance of its business in its interim results statement.

For further details:

About Taptica

Taptica is a global end-to-end mobile advertising platform that helps the world's top brands reach their most valuable users with the widest range of traffic sources available today, including social. Its proprietary technology leverages big data and, combined with state-of-the-art machine learning, enables quality media targeting at scale. Taptica creates a single arena in which brands can scale and engage more relevantly with mobile audiences, staying ahead of the competition. It works with more than 450 advertisers including Amazon, Disney, Facebook, Twitter, OpenTable, Expedia, Lyft and Zynga. Taptica is headquartered in Israel with offices in San Francisco, New York, Boston, Beijing and Seoul. Taptica is traded on the London Stock Exchange (AIM: TAP).