BIDS.L Regulatory News (BIDS)

Fitbug Holdings Plc / Epic: FITB.L / Index: AIM / Sector: Leisure

20 February 2012

Fitbug Holdings Plc ('Fitbug' or 'the Company')

Signs Agreement with Major US Health Insurer &

Raises £530,000 to Support and Accelerate US growth

Fitbug Holdings Plc, the AIM traded provider of online personal health and well-being services, is pleased to announce that it has signed a three year Alliance Agreement with a major US health insurer, through its subsidiary Fitbug Limited, to support a strategic new programme.

The Alliance Agreement accredits Fitbug as a supplier of services to an innovative new programme due to launch mid-year 2012. Contractual terms do not allow Fitbug to disclose details of this strategically important programme ahead of its launch, however due to its competitive positioning and rich functionality, Fitbug is well placed to play a major part in this initiative.

Fitbug Chief Executive Paul Landau said, "There is growing recognition that "Connected Health", where devices are integrated with web based technology, is playing an increasingly important role in the way that people take control of their health. This Alliance Agreement is further strong endorsement of Fitbug's proven capability in this area and the potential opportunity for the business in the US. We are excited by the opportunity to work with a business of such scale, expertise and stature in the US health landscape." 

Fitbug has also raised £530,000 by way of a placing of 29,444,444 new ordinary shares of 1 pence each in the Company ('the Placing Shares'), with new and existing institutional shareholders, at a price of 1.8 pence per Placing Share ('the Placing'). The net funds raised in the Placing will primarily be used to support and accelerate the development of the business in the US.

Fergus Kee, Executive Chairman, and former Managing Director of Bupa's £2.1 billion turnover UK and North America Division, said, "In 2011 Fitbug set out its strategy to develop the business in the US, the largest health market in the world, and invested to put the building blocks in place to do that. This has involved opening a sales and customer service office in Chicago and building a team with strong US health industry experience. This agreement with one of the largest health insurer in the US evidences the progress Fitbug is making and we are confident that it will make an important contribution to our performance in the second half of 2012. With the help of the Placing and a strong sales pipeline, I believe Fitbug is well placed to deliver US revenue growth through 2012."

Application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and dealings in the Placing Shares will commence on Thursday 23 February 2012.

Upon Admission, the Placing Shares will represent 18.38 per cent of the enlarged share capital. The Placing Shares will rank pari passu with the existing Ordinary Shares, including the right to all dividends and other distributions, paid or made after the date of issue.

For the purposes of the Disclosure and Transparency Rules, Fitbug's total issued share capital following the issue of these shares consists of 160,181,638 ordinary shares of 1 penny each.

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Fitbug, under the Disclosure and Transparency Rules.

For further information visit www.fitbugholdings.com or contact:

Notes

About Fitbug

Fitbug is a leading provider of online health and well-being services to help individuals to improve their lifestyles by making realistic changes to their daily routine. It combines activity tracking devices, which download to fitbug.com to provide an understanding of each user's daily activity achievements, with web technology which provides users with personalised weekly activity and nutrition targets, feedback, advice and encouragement. 

Key market sectors include health insurance and rewards providers, workplace health programmes, Primary Care Trusts, fitness operators and consumers. Increasingly, Fitbug's platform acts as the driving force behind third party services such as white label sites, activity driven games and challenge microsites and rewards programmes.

 The Company's main focus is now on building strategic partnerships with organisations, with the United States as a key market, which can integrate Fitbug into their own service/product offerings or resell to their customer base. Visit www.fitbug.com for more information.