CLSU.L Regulatory News (CLSU)

28 August 2015

ClearStar, Inc.

("ClearStar" or the "Company")

(AIM: CLST)

Restricted ordinary shares to be traded in CREST

ClearStar announces that, in accordance with Regulation (EU) No. 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories (the "EU Regulation"), it has introduced a Depository Interest programme ("DI Programme") in respect of its existing restricted line of ordinary shares with Capita IRG Trustees Limited ("Capita") to enable its restricted line of ordinary shares to be settled electronically via CREST.

It is expected that the DI Programme will be effective from 1 September 2015. The Company's restricted line of ordinary shares will continue to use ISIN number KYG2294M1050 and ticker CLST.

The introduction of the DI Programme will ensure that ClearStar complies with the AIM Rules and the EU Regulation which require securities traded on AIM to be capable of electronic settlement with effect from 1 September 2015. The benefit of the DI Programme is that the Depository Interests can be held and transferred through CREST, thereby enhancing the liquidity of the Company's securities.

Shareholders should note that from 1 September 2015, holdings of certificated ordinary shares will be eligible for dematerialisation into Depository Interests which shall be capable of electronic settlement in CREST. Shareholders are encouraged to contact their broker or Capita Registrars directly on +44 (0)871 664 0300 for further details on the DI Programme and how to dematerialise their holding of ordinary shares.

Holders of restricted ordinary shares who do not participate in the DI Programme will continue to hold their ordinary shares in certificated form, which will retain their legend and the restrictions on transfer. Whilst trading in certificated ordinary shares may continue to take place, such holders of certificated ordinary shares should note that certificated stock is not capable of electronic settlement in accordance with the EU Regulation and will need to be dematerialised prior to electronic settlement. No ordinary shares will be deposited into CREST without the positive action of the relevant shareholder.

In general, under US securities law, ordinary shares that have been in issue for more than one year and are not held by an 'affiliate' of the Company qualify for characterisation as unrestricted ordinary shares ("Unrestricted Ordinary Shares"). An affiliate for this purpose is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company or a director or officer of the Company. All Unrestricted Ordinary Shares are eligible for migration to, and trading on, the Company's unrestricted CLSU line with the ISIN number KYG2294M1134.

The Company will be writing to affected shareholders shortly to inform them of the process of dematerialising their restricted ordinary shares.

Enquiries:

About ClearStar

ClearStar, Inc. is a leading and trusted background check technology, strategic services, and decision-making information provider to employers and background screening companies.

A seven-time Inc. 5000 honouree and founding member of the National Association of Professional Background Screeners, ClearStar has provided innovative technology solutions to businesses in the human capital management industry from its corporate offices in Alpharetta, Georgia since 1995. For more information about ClearStar, please visit: www.clearstar.net.