BIDS.L Regulatory News (BIDS)

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

11 April 2011

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

Appointment of Executive Chairman

Fitbug Holdings Plc, the AIM traded provider of online personal health and well-being services, has appointed Mr. Fergus Kee as Executive Chairman with immediate effect. He replaces Allan Fisher who is to step down from his role as Executive Chairman to pursue other business interests but remains with the Company as a Non-executive Director.

Mr. Kee has spent most of his career in the health and retail sectors including 18 years with international healthcare company, Bupa, where he played a leading role in developing and implementing its strategy and seeing its revenues increase from £2.2 billion in 2000 to £6.9 billion and profits rise from £65 million in 2000 to £428 million in 2009. Most recently he was Managing Director of the UK and North American division and CEO of Bupa Insurance Limited but prior to this he was Managing Director of UK Health and Wellbeing and Finance Director of UK Operations. Earlier in his career, having qualified as a Chartered Accountant with KPMG, he held senior finance roles at Proctor & Gamble and at the Burton Group Plc. He was also a member of the Association of British Insurers (ABI) Board and former Chair of the ABI Audit and Health Committees.

Following his appointment, Mr Kee has agreed to invest £200,000 in Fitbug by way of a placing of 10,000,000 1 pence ordinary shares at a price of 2 pence per share. This brings his total holding in the company to 20,000,000 ordinary shares representing 18.5% of the issued share capital of the Company. The independent directors of the Company, being David Turner, Allan Fisher, Geoffrey Simmonds, Paul Landau and Andrew Brummer consider, having consulted with Seymour Pierce, that the terms of the investment by Mr Kee is fair and reasonable in so far as the shareholders are concerned. The proceeds of this are to be used to strengthen the Company's working capital.

Fitbug Holdings Chief Executive David Turner said, "We couldn't have hoped for a better person to join our team - Fergus' deep knowledge of the health sector and wide experience in developing and managing strategies will be invaluable as we drive Fitbug's international growth plans forward. In particular his insight into North America will be key as we focus our resources on developing Fitbug's presence in this very large, attractive market. The Board welcomes his decision to join the business and invest as a shareholder.

"I would also like to thank Allan for the time he has given Fitbug. He has been instrumental in building the business to its current stage, where it is, I believe, now well placed for profitable growth. I look forward to continuing to work with him as the Company evolves and builds its presence in the North American market."

Fergus Kee said, "The need for health solutions to help people improve their lifestyle and health is not new. However the market opportunity for Fitbug is now becoming much clearer and more tangible, particularly in the USA. I am increasingly optimistic regarding prospects for this business and believe it can deliver a profitable return to shareholders."

Mr. Fergus Alexander Kee, aged 50, is or has been a director of the following companies during the previous five years:

There is no other information that is required to be disclosed pursuant to paragraph (g) of Schedule Two to the AIM Rules for Companies.

Application has been made to the London Stock Exchange for admission of the 10,000,000 new ordinary shares to be admitted to trading on AIM. Admission is expected to occur on 15 April 2011.

For the purposes of the Disclosure and Transparency Rules, Fitbug's total issued share capital following the issue of these shares consists of 107,987,194 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.

** ENDS **

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

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 & challenge microsites and rewards programmes.

 The Company's main focus is now on building strategic partnerships with organisations which can integrate Fitbug into their own service/product offerings or resell to their customer base.