Final letter to Charles Lytle at Citibank

Mr Charles Lytle,

Citigroup Global Markets Limited,

Citigroup Centre,

33 Canada Sq.,

Canary Wharf,

London E14 5LB,

United Kingdom

Re: Blinkx

Dear Mr Lytle

I am, naturally, disappointed not to have received a reply to my letter of 19^th January. I can only imagine that you are unable to rebut my criticisms of Blinkx management.

As a follow-up to that letter, a few last points.

Following the release yesterday of the latest figures from Autonomy, I notice that “Autonomy invested $4.3 million in a public offering of shares by blinkx plc”. In other words the Blinkx roadshow earlier this year was an abject failure, wasn’t it Mr Lytle? Institutional investors obviously weren’t impressed with Blinkx management, didn’t like the Blinkx story or didn’t like the way it was told, and as a consequence when Blinkx needed more money Autonomy felt compelled to underwrite the issue (whether to support the company itself or to support the dwindling reputation of Chandratillake among investors in the company, clearly I have no way of knowing) - and as a result was left with more than 50% of the share placing ($4.3m of a £5m placing). Did Autonomy want to end up owning those shares? I don’t know, but then again I don’t know why Blinkx wanted the money in the first place: God forbid that the poor bloody shareholders should ever be told anything – anyone would think they owned the company or something!

I do know however that the Blinkx share price is currently around 20% below the placing price – at roughly the same levels as two years ago. I wonder how Autonomy shareholders feel about that?

Three last points Mr Lytle.

Firstly, whilst Blinkx may, as you stated, be delivering to plan, was it part of the plan that the share price should lose more than two-thirds of its value in the three years following the IPO? Why does Blinxk management refuse to do anything, by word or by deed, to support the company’s share price?

Following on from that point, if Blinkx has such a bright future ahead of it, why hasn’t Chandratillake ever, so far as I am aware, bought shares in the open market to demonstrate confidence in the future of the company and his own future wealth? He’s more than happy to put my money where his not-inconsiderable mouth is, but I don’t notice him risking any of his own capital?

Lastly, but not least – if Blinkx is doing so well and growing so fast, why has nobody tried to buy it?

Time for a change of management at Blinkx, I think. Time to get rid of the muppet crew currently running the show and to replace them with a new management team which is prepared to invest their own money in their own company, has a clue about the modern media landscape, can communicate with shareholders, the media and the City and gives a damn about their investors.