Otello Corporation ASA

Board/Management Information • Dec 21, 2017

Otello Corporation announces termination of AdColony CEO

Otello Corporation announces termination of AdColony CEO

The Board of Directors of Otello Corporation today announced the departure of

AdColony's Chief Executive Officer, Will Kassoy. Mr. Kassoy will step down from

his position effective immediately. Lars Boilesen, Otello CEO, will act as

interim CEO for AdColony while the company searches for his permanent

replacement. Mr. Kassoy's severance will be paid according to contractual

obligations.

The Chairman of Otello's Board, Audun Iversen, thanked Mr. Kassoy for his

service with AdColony.

2017 has been a disappointing year for AdColony, which has been impacted by

product delays and poor execution in the midst of a strong and growing mobile

advertising market. Based on the preliminary numbers and developments thus far

in 4Q17, Otello expects AdColony's revenues to be down between 5 and 10% versus

3Q17.

Despite the challenging year, AdColony remains uniquely positioned to play a key

role in the massive mobile advertising market as the largest independent mobile

video advertising player. AdColony's strong SDK footprint, publisher and

developer relationships coupled with some of the brightest minds in the industry

are all key components that Otello believes will lead to AdColony's return to

growth and profitability.

The mobile advertising market remains strong. AdColony is experiencing

increasing gross margins in 4Q17 compared to 3Q17. In addition, the

restructuring announced in connection with Otello's 3Q17 report has been

successful, and we expect to enter 2018 with a cost base 40% below where we

entered 2017. The persistent cost focus has lowered AdColony's break-even run

-rate significantly and has set AdColony up for a faster return to

profitability.

Otello continues to have a very strong financial position, which was further

enhanced by the sale of SurfEasy in November 2017. In addition, continued strong

performance from Bemobi and Skyfire's turnaround makes us optimistic looking

into 2018.

This press-release contains, and is i.a. based on, forward-looking statements

regarding Otello Corporation ASA and its subsidiaries. These statements are

based on various assumptions made by Otello Corporation ASA, which are beyond

its control and which involve known and unknown risks, uncertainties and other

factors which may cause our actual results, performance or achievements to be

materially different from any future results, performances or achievements

expressed or implied by the forward-looking statements. Forward-looking

statements may in some cases be identified by terminology  such  as  "may",

"will", "could", "should", "expect", "plan", "intend", "anticipate", "believe",

"estimate", "predict", "potential" or "continue", the  negative of such terms or

other comparable terminology. These forward looking statements are only

predictions. Actual events or results may differ materially, and a number of

factors may cause our actual results to differ materially from any such

statement. Such factors include i.a. general market conditions, demand for our

services, the continued attractiveness of our technology, unpredictable changes

in regulations affecting our markets, market acceptance of new products and

services and such other factors that may be relevant from time to time. Although

we believe that  the expectations and assumptions reflected in the statements

are reasonable, we cannot  guarantee  future  results, levels of activity,

performance  or achievement.

Petter Lade, CFO

Phone: +47 91143878

E-mail: petterl@opera.com

About Otello: Otello holds shares in several different businesses, including

AdColony which helps publishers monetize their content through advertising

and advertisers reach the audiences that build value for their

businesses, capitalizing on a global consumer audience reach that exceeds 2

billion; Apps and Games (Bemobi); "Performance & Privacy" (Skyfire);

and Connected TV (Vewd).