ZIM Announces Agreement to Acquire US Mobile Content Provider

Tue, 2006-03-28 00:00 -- zim-admin

ZIM enhances its mobile offering through strategic acquisition

Ottawa, Canada - March 28, 2006 - ZIM Corporation (OTCBB: ZIMCF), a global mobile service provider, aggregator and application developer for the mobile market, today announced it has agreed to acquired a U.S.-based mobile content company, Advanced Internet Services Inc., in a combined share and cash deal worth approximately $1.1 million. ZIM will issue 10 million shares, representing approximately 14% of the issued and outstanding shares of the company, post issuance. The acquisition provides ZIM an immediate entry to the mobile content market and a proven mobile content-delivery platform. ZIM expects the transaction to be completed by April 1, 2006, subject to the completion of customary transaction documents and closing conditions. 

"We are further expanding our mobile offering with the acquisition of Advanced Internet Services, as they have two of the top 15 mobile content sites, Monstertones.com and ringingphone.com," said Dr. Michael Cowpland, President and CEO of ZIM. "This acquisition is part of the move into mobile content that we announced in February, 2006. With this acquisition, we hope to leverage our relationships and technical expertise to expand our role in the mobile market. In addition to the Monstertones.com and ringingphone.com portals, ZIM will be providing mobile content through other dedicated portals." 

Founded in 2002, Advanced Internet Services was one of the first independent websites in North America to offer cell phone ring tones and wallpapers. The ring tone sites host a large catalog of polyphonic and MP3 ring tones for music spanning from the 1950’s to the most popular current hits. In addition to offering popular music ring tones, the websites offer a wide variety of unique content, including funny and sexy ring tones and a large collection of urban ring tones. 

"ZIM and Advanced Internet Services both believe in the potential of the mobile content market," saidBret Dunlap, Founder and CEO of Advanced Telecom Services, the parent of Advanced Internet Services. "We are very excited about this transaction with ZIM, as we believe the mobile content opportunities in North America are still in the early stages. As an aggregator of mobile data services, ZIM is perfectly positioned to capitalize on this burgeoning new market opportunity."

About ZIM

ZIM is a mobile service provider, aggregator and application developer for the mobile market. ZIM’s bridges the gap between data and mobility. For more information on ZIM and its customers, partners and products, visit: www.zim.biz.

For more information:

Jennifer North
Chief Financial Officer
ZIM Corporation
Phone: 1 613.727.1397 ext. 121
E-mail: jnorth@zim.biz