blinkx results FOR THE FIRST HALF, FISCAL YEAR 2012

safeharbor statement During this presentation we may make various remarks about the company’s future expectations, plans

and prospects, which constitute forward-looking statements for purposes of the safe harbor provisions

under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from

those indicated by these forward-looking statements as a result of various important factors, including

those discussed in blinkx’s most recent prospectus, which is on file with the Financial Services

Authority.

Any forward-looking statements represent our views only as of today and should not be relied upon as

representing our views as of any subsequent date. While we may elect to update forward-looking

statements at some point in the future, we specifically disclaim any obligation to do so, even if our

estimates change and, therefore, you should not rely on these forward-looking statements as

representing our views as of any date subsequent to today.

During this call we may be referring to non-IFRS financial measures. These non-IFRS measures are not

prepared in accordance with generally accepted accounting principles. A reconciliation of the non-IFRS

financial measures to the most directly comparable IFRS measures will be made available in the Investor

Relations section of our website, www.blinkx.com, under the heading Investors.

results highlights

Revenue increased by 63% to $44.6m, from $27.4m in H1 2011

Profit from operations (adjusted) of $4.9m compared with $2.5m for H1

2011

Profit before tax (adjusted) of $5.0m, compared with $2.5m for H1 2011

Combination of blinkx’s 55m monthly unique users with Burst’s 89m

monthly unique users significantly increases overall scale and reach

New premium content partnerships include Future Publishing, the Bleacher

Report, Cinesport, NewsLook and FashionTV

New distribution agreements with Aurasma, Roku, Orb Networks and

BlueStreak Technology increase blinkx’s footprint in both the Mobile and

Connected TV spaces

Continued growth of AdHoc advertising platform, with new clients

including Disney, Kellogg’s, Nivea and Pimms

Launch of five Burst-branded publisher channels, MomIQ, Ella, Stadium,

Giant Realm and Ignition, lays the foundation for an Internet TV network

Creation of Burst online video networks introduces relevant, TV-style

programming to Burst’s ecosystem of independent publishers

a thriving medium

INFRASTRUCTURE IN PLACE

• Proliferation of broadband which enables

multimedia content

• By 2015, 90% of global consumer IP will be

video (Cisco VNI, June 2011 )

MAINSTREAM ACTIVITY

In the U.S. – (September 2011, comScore)

• More than 85% of the total U.S. online

population is watched online video

• Almost 182 million U.S internet users watched

online video

• U.S internet users engaged in over 39.8 billion

video views

In the UK – (August 2011,comScore)

• 6.5 billion videos were viewed in August of this

year, up 29% in the last six months

• On average, each viewer spent 20.1 hours

viewing online videos, also increasing 33% in the

last six months

Household Penetration (%) and Broadband

Subscriptions (m) 2009 - 2015

USA

UK

Source: eMarketer, March, 2011

99.7 98.3 96.5 93.3 89.2 85.1 81.0

75.7% 73.0% 72.4% 70.5% 67.8% 65.0%

61.8%

2009 2010 2011 2012 2013 2014 2015

19.4 22.1 23.7 24.9 25.8 26.7 27.6 62.0% 70.5%

74.7% 78.1% 80.7% 83.1% 85.2%

2009 2010 2011 2012 2013 2014 2015

a massive opportunity

NEW REVENUE

• The Internet is claiming a growing share of ad

budgets at the expense of traditional media such

as newspapers, radio and magazines

• Video ads will continue to be the fastest-

growing online ad format. eMarketer expects a

38.6% increase in US spending on video

advertising this year, with an even higher 54.2%

growth rate in 2012. (eMarketer, April 2011)

• IAB figures for October 2011 show a 13.5% like

for like growth in UK internet advertising

expenditure, and a half-year 2011 high of £2.26

billion

• Video’s share of US online ad spending will

grow from 4.5% in 2009 to 14.1% in 2014, more

than tripling during the period. (eMarketer,

April 2011)

US Online Video Ad Spend growth forecasts ($bn)

– Internet video / rich media

Source: eMarketer and ZenithOptimedia,

"Advertising Expenditure Forecasts", Oct 3,

2011

2.21 2.74

3.34

4.21

5.34

2009 2010 2011 2012 2013

Fragmentation the Key Challenge

CONSUMERS

In the UK, there are 480 TV channels and 201,800,000 web sites

• Search and discovery is a challenge because content is distributed across millions of sites

across the Web

CONTENT OWNERS

86% of online time is spent off the comScore top 250 sites

• With consumer attention distributed across the Web, many publishers struggle to attract a

significant audience

ADVERTISERS

Reach is a key driver for 85% of agencies evaluating digital video advertising

• Brands continue to move an increasing amount of their TV advertising budgets to online

video, but need to be able to reach an audience of equivalent size on the Web

blinkx: Internet Video Engine

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Text search engines miss the VIDEO in Video Search

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BLINKX WATCHES the video, too

CORE Unique Conceptual Recognition

Engine based on a patented

combination of Shannon’s

Information Theory and Bayesian

Inference provides pattern-matching

approach to content discovery and

categorization

blinkx understands the meaning contained in video

TEXTUAL

Advanced textual

analysis, page and site-

level human design

context analysis and

visual spidering with

support for over 200

video and audio metadata

file formats

SPEECH

RECOGNITION

Continuous, speaker-

independent, large

vocabulary speech

recognition. Neural

Network and Hidden

Markov Model-based

acoustic language

modelling

VISUAL

ANALYSIS

Visual Analysis: Real-time

scene decomposition,

On-screen Character and

Facial Recognition, visual

and metadata Closed-

Caption extraction

blinkx Search and Discovery

THE WORLD’S LARGEST, MOST ADVANCED

VIDEO SEARCH & DISCOVERY ENGINE

• A one stop shop for over 35,000,000 hours of content from more than 700 content partners

• Access to this index wherever you already are … at blinkx.com, at other search sites (Ask, MSN, Infospace), in-site (Daily Mail, Burst Media), or even in-application (Mobile, Toolbars, Real Player)

• blinkx’s precise understanding of video enables it to return matching videos based on a user’s past behavior and current context

• First contextual advertising platform

for video

• Uses blinkx’s unique technology to

place relevant ads into relevant videos

at the most relevant points in time

• Platform approach interfaces with

external ad networks

• Clients have achieved click-through

rates with AdHoc that were between

200% and 500% higher than client

benchmarks

“blinkx's special sauce - something even Google doesn't have - is software that can turn speech into text

and count how many times a word pops up in a video. This is very useful to anyone selling targeted

ads…” Erick Schonfeld, Business 2.0

blinkx AdHoc

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the blinkx ecosystem

FOR ADVERTISERS a one stop shop to buy audiences of over 100m uniques

a unique targeting technology

a professional, brand-safe content guarantee

FOR CONTENT

PRODUCERS access a combined

audience of over 100m uniques

be part of an index that is accessed

millions of times a day

distribution of your content

AND advertising that monetizes

its consumption

FOR CONSUMERS a one stop shop of over

35,000,000 hours of content

premium content from more

than 720 content partners

access to video wherever

you already are

the blinkx ecosystem

Progress in H1 2012

customer wins

Burst Media: reviving a brand

Burst Channels

W 25-54; w/ children in household, Family, Parenting,

Cooking, Wellness, “Me-Time”

M 25- 54; Sports

M < 35; HHI+ Gaming,

Entertainment, Men’s Lifestyle

W 18-34; no children Style, fashion, celeb, gossip, music,

shopping

Motor Heads and automotive consumers from

first time buyers to luxury seekers

Burst Online TV

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Coming soon…

PRIME VISIBILITY MEDIA GROUP, INC. ACQUISITION

About PVMG

Summary • Online performance advertising network and Digital Marketing Agency

• Network averages over 600 advertisers and 350 publishers

• Users on the network generate 1.5 billion queries daily

• Digital Marketing Agency offers consulting services to assist customers in developing

internet marketing strategies to establish and enhance their digital presence, through

Search Engine Optimisation (SEO), Search Engine Marketing (SEM), social media, email

and mobile marketing services.

• blinkx expects to benefit from strategic addition of executives from PVMG's senior

leadership team post-acquisition, including CEO S. Brian Mukherjee who will be joining

blinkx as EVP and GM for Search and Mobile

• To be acquired for an aggregate consideration of approximately $36 million, to be

funded from blinkx's existing cash reserves

• For financial year ending 31 December 2010, gross assets of $22.4m, gross revenues of

US$29.9m and net loss for the period of $389,511.

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PVMG: text search to text results

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blinkx: video search to video results

Combined Group: text search to video results

PVMG ACQUISITION

integration Deal Rationale & Integration Highlights

• blinkx expects to integrate PVMG's platform with blinkx's so as to enable the blinkx video

search engine to respond to a portion of PVMG's 1.5 billion daily queries with relevant video

results

• PVMG's sponsored text ads generate approximately $5.00 effective Cost-Per-Mille (eCPM),

blinkx’s standard untargeted sponsored video units are priced at $13.00 CPM

• blinkx believes the combined group will be able to realise some of the differential between

these two rates to generate incremental revenue

• blinkx expects that the agency business will provide useful insights into brands’ Internet

marketing strategies, enabling blinkx to offer more compelling advertising solutions

• Integration expected to begin immediately

• Following integration, expected annual revenue run-rate of between $35 million and $40

million by the end of the financial year ending 31 March 2013

Search engines capture user intent at the very point of inquiry - a combination of PVMG and blinkx will allow us to provide relevant, high-quality, monetized videos to those users, providing them with an enjoyable, engaging experience that generates a higher value advertising event for

blinkx, PVMG and their publisher partners

financial highlights Total revenue of $44.6m for the period ending 30 September

2011

Gross profit for the period was $26.4m or 59% gross margin

Profit from operations for the period before acquisition and

related costs* was $4.9m ($1.4m post these costs)

Profit before taxation for the period was $1.5 m

Net profit for the period was $5.7m before acquisition and

related costs* ($2.2m post these costs)

Cash balance at 30 September 2011was $52.9m

Cash generated by operations was $2.1m

* Acquisition and related costs comprise $1.9 million acquisition

and integration costs and $1.6m amortisation of purchased

intangibles

profit & loss statement 6 months to 30

September 2011

(unaudited)

6 months to 30

September 2010

(unaudited)

$'000 $'000

Revenue: continuing operations 44,569 27,363

Cost of revenue (18,139) (9,651)

Gross profit 26,430 17,712

Operating expenses

Research and development (4,033) (3,736)

Sales and marketing (15,506) (10,158)

Administrative expenses (1,999) (1,311)

Profit from operations before acquisition and related costs* 4,892 2,507

Acquisition and integration costs (1,921) -

Amortisation of purchased intangibles (1,550) 503

Profit from operations 1,421 2,004

Investment revenues 61 20

Profit before taxation 1,482 2,024

Tax 711 -

Profit for the year before acquisition and related costs* 5,664 2,527

Profit for the year 2,193 2,024

Earnings per share (cents) Cents Cents

Adjusted basic* 1.64 0.82

Basic 0.63 0.66

Adjusted diluted* 1.60 0.80

Diluted 0.62 0.64

* Excludes acquisition and integration costs of £1.9m and amortisation

of purchased intangibles of $1.6m

balance sheet

As at 30

September 2011

(unaudited)

As at 30

September 2011

(unaudited)

$'000 $'000

Non-current assets 51,750 7,205

Trade receivables 19,613 9,053

Other receivables 3,756 2,709

Cash and cash equivalents 52,928 16,867

Current assets 76,297 28,629

Total assets 128,047 35,834

Total liabilities (21,715) (7,079)

Net assets 106,332 28,755

Total equity 106,332 28,755

conclusion Continued strong growth trajectory

• Profits up 96% year-on-year

• Revenues up 63% year-on-year

Significant progress on integration of Burst Media

• Launch of five Burst-branded publisher channels lays the foundation for an Internet TV

network

• Creation of Burst online video networks introduces relevant, TV-style programming to

Burst’s ecosystem of independent publishers

New partnerships in the mobile and Internet TV continue to extend the core model and

increased addressable market opportunity

Post-period acquisition of PVMG opens up access to vast new audience

• Combined advertising platforms will enable blinkx’s video search engine to respond to

a portion of PVMG's 1.5 billion daily queries with relevant video results

• Where available these video results can be paired with rich media video ads that

typically monetise at a higher rate

blinkx, the Internet Video Engine

• A multifaceted platform to monetize video on the Internet, mobile devices and

Connected TVs