365.L Regulatory News (365)

VPhase plc

("VPhase" or "the Group")

Board Changes

VPhase plc (AIM:VPHA), a leading provider of energy-saving products for residential and commercial properties, is delighted to announce the appointment on 7 July 2010 of Vanda Murray, OBE to the board as the Non Executive Chairman. Adrian Hutchings is stepping down as Chairman with immediate effect.

Vanda (49) has over 20 years of senior management experience across a range of B2B and B2C sectors in the UK, Europe, USA and Asia. She was previously CEO of Blick plc where she doubled market cap. in two years before orchestrating a sale to Stanley Works Inc. She also led a turnaround at Ultraframe (UK) Limited which was then sold to Latium Limited in June 2006. She has a background in Sales and Marketing. Vanda is also currently Non-Executive Director of Carillion plc, SIG plc and The Manchester Airport Group plc. In 2002 Vanda was appointed OBE for services to Industry and Export. Vanda has been working with VPhase on a consultancy basis for the past four months as the Board have evaluated how best to carry out the transition of VPhase from the development of technology to the commercial execution stage.

In addition, the current CFO of VPhase PLC and Energetix Group PLC, Rick Smith, will on an interim basis take over full commercial operations of VPhase. These changes will enable the current CEO Lee Juby to focus on product development and cost reduction of the VPhase product. Vanda and Rick will take the lead on the further development of the commercial execution of the business in terms of its routes to market via utility partners, social housing organisations, and distributor relationships as well as through direct channels. The initial focus will be on the United Kingdom, however the opportunities in overseas markets will also be addressed.

Adrian Hutchings commented "We are delighted that Vanda is joining the board of VPhase, her expertise in driving the commercial execution of early stage businesses is well demonstrated. I have worked closely with Vanda for the past few months and believe that her skills and experience will give VPhase the commercial vision it requires to transition VPhase to a fully commercial success.  VPhase has an extremely good product that now needs the right set of skills and experience to drive the Company's commercial growth."

Vanda and Rick have substantial experience in the commercial development of operations in the buildings products area with Ultraframe where they previously worked together. Following the recent announcement regarding the results of the social housing trials with Great Places Housing Group, these appointments are timed to maximise the commercial benefit for the Company on the anticipated addition of VPhase product to the Ofgem CERT scheme. The Company, in a tripartite agreement with Scottish and Southern Energy and Ofgem, has completed field trials of the VPhase product in 50 homes of SSE customers in the Reading and Thatcham area. Data from these trials is currently being analysed by Ofgem's independent experts. This data will give a life cycle CO2 saving level for the VPhase product, which can subsequently be translated into a likely financial value of these carbon credits."

Subscription for new shares

Vanda Murray has on 7 July 2010 procured the subscription by her personal SIPP for 1,260,504 new ordinary shares of 0.25p each in the capital of the Company at a price of 2.38p per share. Following the subscription she beneficially owns 1,260,504 ordinary shares of 0.25p each comprising 0.18 per cent. of the issued share capital.

Rick Smith has on 7 July 2010 subscribed for 420,168 new ordinary shares of 0.25p each in the capital of the Company at a price of 2.38p per share. Following the subscription he beneficially owns 12,909,666 ordinary shares of 0.25p each comprising 1.84 per cent. of the issued share capital.

It is anticipated that the new ordinary shares will be admitted to listing on 13 July 2010. The issued share capital of the Company following the subscriptions for new ordinary shares is 702,210,361 ordinary shares of 0.25p each

Grant of share options

Vanda Murray was on 7 July 2010 granted options over 10,507,944 ordinary shares of 0.25 p each (comprising 1.5 per cent. of the entire issued share capital) at an exercise price of 2.38 p per share. Of these, half the options (over 5,253,972 shares) are not subject to any performance criteria and can be exercised as to one third each year following the anniversary of grant. The balance of Vanda's options can be exercised as to one third in each case once certain performance criteria have been met.

Rick Smith was on 7 July 2010 granted options over 10,507,944 ordinary shares of 0.25 p each (comprising 1.5 per cent. of the entire issued share capital) at an exercise price of 2.38 p per share. The options are not capable of exercise unless specific short term performance criteria are met in the period following the grant of the options. After that the options can be exercised as to one third in each case once certain performance criteria have been met.

Vanda Murray - current directorships/partnerships

·; The Manchester Airport Group PLC (4330721)

·; Carillion PLC (3782379)

·; Northwest Business Link (6060925)

·; SIG PLC (998314)

·; Vanda Murray Associates Limited (5419128)

·; Northwest Regional Development Agency

Vanda Murray - directorships/partnerships held in last five years

·; Eazyfone Limited (4155766)

·; The Manufacturing Institute (2996104)

·; TMI Enterprises Limited (5774175)

·; The Cheshire Building Society

·; TPMI (Trading) Limited (3004124)

·; Ultraframe Limited (3330992)

·; Ultraframe (UK) Limited (1765701)

Vanda Murray - other disclosable information

There are no further disclosures to be made regarding this appointment under schedule 2 paragraph (g) of the AIM Rules

- ENDS -

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About VPhase plc

VPhase plc provides a product that reduces the energy consumption of many domestic electrical appliances.

The Company has developed a Smart Voltage Management product designed to be attached to the consumer unit (fuse box) in order to control the incoming voltage for selected circuits to a target set point of 220 volts. This is slightly higher than the minimum design point for electrical items in Europe, thereby ensuring that electrical appliances in the home operate closer to the voltage condition for which they were designed.

Tests by VPhase have demonstrated that the product can typically save around 10% of the electricity across a range of domestic products including fridges, freezers, central heating pumps, televisions and other items, even 'energy-saving' light bulbs. This should equate to savings for the typical homeowner of about £50 per annum.

In addition, there is evidence that the life of electrical appliances can be extended by the use of this product; light bulbs, in particular, have demonstrated at least two times longer life when on a circuit managed by the voltage management product as compared to those without the product.

www.vphaseplc.com

Energetix Group plc

VPhase is a subsidiary of Energetix Group plc. Energetix (AIM:EGX) is a group of companies with three cost-effective products (Pnu Power, Genlec and VPhase) to meet the growing demand for alternative energy. With a focus on distributed generation, energy storage and energy efficiency, the Energetix businesses are:

·; Pnu Power - compressed air back-up power

·; Genlec - distributed generation in the home

·; VPhase - domestic energy efficiency

Energetix and all its subsidiaries are based near Chester, NW England.

www.energetixgroup.com