BIDS.L Regulatory News (BIDS)

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

19 July 2011

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

Placing to raise £770,000

Fitbug Holdings Plc, the AIM traded provider of online personal health and well-being services, has raised £770,000 by way of a placing of 19,250,000 new ordinary shares of 1 pence each in the Company ('the Placing Shares'), with new and existing institutional shareholders, at a price of 4 pence per Placing Share ('the Placing Price') ('the Placing'). The funds raised will primarily be used to support and accelerate the development of the Company's services in the U.S.A.

Fitbug Limited Chief Executive Paul Landau said, "The successful raising of £770,000 will be highly beneficial to the Company as we look to fund our development in the expanding US healthcare market, where the tangible need for products and services such as ours is strengthening. Supported by the Obama health reforms, efforts to slow the growing rates of healthcare costs in the US are increasing the uptake of corporate wellness and incentive programmes to encourage employees to lead healthier lives. This plays strongly in favour of Fitbug's core activity and lifestyle tracking capabilities which can lead to positive behaviour changes. Having already started to establish a solid presence in the American health and well-being sector over the last 18 months, we have a number of further US sales and strategic partnership discussions in hand, which we hope to conclude in the second half of 2011."

Fergus Kee, recently appointed Executive Chairman, and former Managing Director of Bupa's £2.1 billion turnover UK and North American Division said, "I would like to take this opportunity to welcome new shareholders to the Company and thank existing investors for their continued support. With the help of these funds and strong prospects in the US, I believe that Fitbug is now entering a very exciting period in its development."

As part of the Placing, Executive Chairman Fergus Kee has converted an outstanding loan to the Company of £50,000 into 1,250,000 new Ordinary Shares at the Placing Price. Following this conversion, Fergus Kee has an interest in 21,250,000 ordinary shares representing approximately 16.25 per cent. of the enlarged share capital. In addition, as part of the Placing, David Turner, Chief Executive of Fitbug has converted £25,000 of his outstanding loan to the Company into 650,000 new Ordinary Shares at the Placing Price (together 'the Debt Conversion'). Following this conversion, David and his immediate family have an interest in 17,128,333 ordinary shares representing approximately 13.10 per cent. of the enlarged share capital. Under AIM Rule 13 the Debt Conversion is a related party transaction. The independent directors of the Company, being Allan Fisher, Geoffrey Simmonds, Paul Landau and Andrew Brummer consider, having consulted with Seymour Pierce Limited, that the terms of the Debt Conversion are fair and reasonable in so far as the shareholders are concerned.

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 21 July 2011.

Upon Admission, the Placing Shares will represent 14.72 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 130,737,194 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:

Notes

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 which can integrate Fitbug into their own service/product offerings or resell to their customer base.