Partnership In Broadband Gaming Vehicle through Share Swap with Singapore-listed Auston To Drive Company Expansion in Growing Asian Broadband Market

Hollywood CA/ Singapore, January 4, 2006 – M2B World (“M2B World”) Pte Ltd, a Singapore-based subsidiary of Amaru Inc. (AMRU), announced today that it has signed an agreement for a share swap with Singapore-listed Auston International Group (“Auston”) Ltd. whereby Auston will acquire an 81% stake in M2B Game World (M2B Game World) Pte Ltd, a wholly owned subsidiary of M2B World, in exchange for 71.4 million of Auston shares valued at $2.9 million USD. Following the share swap and a proposed placement of an additional 40 million new shares by Auston, M2B World will hold 27% of Auston’s enlarged issued capital.

M2B Game World attracted the interest after it successfully launched MagicOverLoad (www.MagicOverLoad.com) - an online gaming platform that aggregates 18 popular online games including World of Warcraft, Helbreath andHyper Relay - in Singapore in October this year. The company plans to roll out the platform in Indonesia, Thailand, Australia, New Zealand and China under the branding of MagicOverLoad for this six country franchise.

Through the agreement with Auston, M2B World will continue to manage M2B Game World under a 3-year management contract for a management fee equal to 30% of the company’s consolidated pre-tax profits.

“Online gaming is a natural extension of the M2B brand’s widening broadband entertainment business. With our strategic partnership with a Singapore-listed company, we will have the ability to utilize this strong base in Singapore to expand within the fast growing Asian broadband and on-demand entertainment and e-commerce markets,” said Colin Binny, CEO of Amaru Inc and M2B World.

“M2B Game World’s business model plays a key role in the online gaming value chain as a regional distributor of online games through its micro-payment system and planned network of cyber cafés and outlets,” Colin added.

M2B World aims to capitalize upon the agreement by using the newly acquired shares and listed status to raise additional funds to drive company growth in the burgeoning broadband entertainment arena.

About Amaru Inc. (AMRU) and M2B
Amaru, Inc., a Nevada corporation, through its subsidiaries under the M2B brand, is a leader in the Broadband Media Entertainment business, and a major provider of interactive Entertainment-on-demand, Education-on-demand and e-commerce streaming over Broadband channels, Internet portals, and 3G devices. To date, the Company has launched multiple Broadband TV websites for Hollywood and Asian entertainment, education and online shopping, with over 100 channels designed to cater to various consumer segments and lifestyles. Its content covers diverse genres such as movies, dramas, comedies, documentaries, music, fashion, lifestyle, edutainment, and more. The M2B brand has established its competitive edge by offering access to an expansive range of content libraries for aggregation, distribution and syndication on Broadband and other media; including rights for merchandising, product branding, promotion and publicity.
Globally, Amaru Inc and M2B are expanding through several integrated companies including:
1. M2B World Inc – leads the US market and is based in Hollywood, CA.
2. M2B World Pte Ltd – directs the Asian markets through its Singapore office and representative office in Shanghai, China
3. M2B Australia Pty Ltd – oversees Oceania markets
4. M2B Entertainment Inc. – oversees Canadian market
5. M2B Commerce Limited – focuses on e-commerce and e-trading
6. M2B World Travel Limited - offers e-travel services
7. M2B Game World Pte Ltd – develops online gaming platforms and content
8. M2B Commerce Ltd (Cambodia) – oversees Cambodian market
9. Amaru Holdings – drives content syndication and distribution
M2B offers consumers personalized entertainment through its wide range of broadband streaming channels available at www.m2bworld.com.
Safe Harbor Act
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control. For full statement, please refer to www.m2bworld.com

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