Artisanal Sp.co Regulatory News (ART)

1 July 2011

Artisan (UK) plc

("Artisan" or the "Company")

Banking update

As previously announced, Artisan's current banking facilities expire on 1 July 2011. The Company has been engaged in ongoing negotiations in relation to obtaining a new facility and those negotiations are at an advanced stage. As part of those negotiations, updated valuations in respect of the stock, work in progress and properties are required and final pricing will be dependent on the outcome of those valuations. Our lender remains supportive of the Company and has provided a temporary waiver of a potential financial covenant breach together with a 3 month extension of the current facility in order to give us sufficient time to complete the valuation exercise and conclude negotiation and documentation of the new facility.

The terms proposed, subject to contract and dependent on our Lender's receipt of satisfactory due diligence and satisfactory documentation, include the following key points:

·; Overall facility to remain at £25m net in three separate parts, covering commercial and residential facilities

·; The facility to be split between LIBOR and base rate sub-facilities

·; Offset allowed against credit balances

·; Interest margin to be determined

·; Term extended from 1 July 2011 to 1 July 2013

·; Loan to cost of 70% for existing residential WIP

·; Loan to cost of 65% for new residential WIP

·; Commercial funding remains at 60% loan to cost

·; Other covenants set in line with the forecasts produced by management

In addition the Company continues to have a £3.173m investment property facility which it is proposed will be extended to 1 July 2013 commensurate with the new facility outlined above.

Enquiries: