SOURCE: Berggi

December 17, 2007 10:24 ET

Mobile Startup Rapidly Grows User Base With Adoption of Edge Marketing Strategy

Berggi Credits First-Year Growth to Customer and Industry Feedback, and Shifting to an "Edge Marketing Strategy"

Berggi to Reach 2,000,000 User Registrations Worldwide

PALO ALTO, CA--(Marketwire - December 17, 2007) - Berggi, an emerging leader in the fast-growing mobile online applications and services market, announced that it will cross the 2,000,000 user registration mark next month, just over one year since the company launched. The company attributes its growth to continuous adaptations to its business model, and credits the value of the feedback it has received from customers and industry experts. Beginning as a paid service that could only be accessed via a single corporate site, Berggi gradually shifted to an edge-marketing strategy, ultimately distributing the service for free via dozens of sites around the globe, in multiple languages.

Having grown its user base faster than it expected the company is now closing deals with Internet service providers, portals, and large online community operators, to provide ad-supported mobile online services to large local markets. Earlier this month, Berggi announced that it has signed a three-year strategic partnership with SINA, China's largest Web portal and media company. The deal was the first of its kind for Berggi, which until now has relied upon organic growth.

"The past year -- our first -- was a year of learning and growth, and now we are poised for growth with a globally distributed ad-supported business model," said Berggi CEO Babur Ozden. "From day one, we have been on the receiving end of direct and honest feedback from customers, bloggers, reporters, analysts, venture capitalists, and other industry leaders. Some of the feedback has been tough, and a great deal of it has been constructive. We took the advice, adapted rapidly, and saw real and positive results."

The three most important changes to Berggi's original go-to-market model were (1) changing from a paid service; (2) distribution across multiple sites in multiple regions; and (3) continuous introduction of new services integrated into what Berggi has coined "the downloadable portal."

"The first was easy, and there was a strong precedent for it -- the ad-supported model that other popular online services have adopted for fast network growth," said Ozden. "But the second was not easy. It was a long, intensive global experiment that entailed a lot of discipline and trial and error."

Berggi is now getting ready for 2008, the early part of which will be focused on a number of new product releases beyond mobile messaging, such as mobile video and mobile search, with the unique approach to simplicity and mass availability that has helped Berggi grow its network.

"The 2007 experiment has had another unexpected benefit," said Ozden. "Our now sizeable user base has helped us understand what consumers really want in different parts of the world's largest mobile markets. Our new product roadmap reflects the learning, and we are gearing up for what we believe will be an even better year."

About Berggi

Berggi (www.berggi.com) is the leading global downloadable mobile portal, bringing a wide range of mobile applications and services -- email, messaging, videos, web downloads, sharing and mobile communities -- to any cell phone running on any mobile operator. Headquartered in Palo Alto and with offices in Madrid, Houston, Sofia and Beijing, Berggi is building an ad-sponsored global mobile platform, connecting people to useful, fun and entertaining services through their cell phones. The company was founded by the mobile industry veteran Jorge Mata and is backed by Spanish investors Group AVANZIT and Adara Ventures. Group AVANZIT (MCE: AVZ) operates in more than 20 countries in media, telecom and IT sectors and through its subsidiary Navento in the localization-based services industry. Based in Madrid, Adara Ventures (www.adaravp.com) is the leading venture capital firm in Spain.

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