Brand Architek. Regulatory News (BAR)

Swallowfield plc

("Swallowfield" or "the Company")

Grant of Share Options

Swallowfield plc (the Company), has, pursuant to the rules of the Company's Share Option Plan 2005, granted options to certain directors to subscribe for up to 225,119 ordinary shares of 5p each ("Ordinary Shares") at an exercise price of £0.95 per ordinary share (the "Options") as follows:

All of the 225,119 new Options granted have a performance condition attached to them, linked to certain stretching share price targets ranging from a threshold at £1.80 to the full award at a share price of £2.20; and to the extent that the performance condition is met, have an exercise price of £0.95.

In addition to the grant of Options outlined above, the Company has also granted to certain directors a number of phantom share options (the "Phantoms") as follows:

All of the 457,060 new Phantoms granted have an identical performance condition to the Options above, and to the extent that the performance condition is met, have a notional exercise price of £0.95. The difference between the share price target achieved and the notional exercise price would become payable in cash. The Phantom Options are designed to finance the exercise of the Options so that there is no share overhang when the Options are exercised.

Following the grant of the Options the total number of ordinary shares subject to options and which could, in the future, be issued is 225,119. This represents 1.99% of the current issued share capital of the Company which comprises 11,306,416 Ordinary Shares.