Chamberlin Plc Regulatory News (CMH)

AIM: CMH

CHAMBERLIN PLC

("Chamberlin" or the "Company")

Placing of new ordinary shares

Chamberlin, the specialist engineering group, is pleased to announce a placing of 370,370 new ordinary shares (the "New Ordinary Shares") with The Diverse Income Trust plc, which is managed by MAM Funds plc. The New Ordinary Shares were placed at a price of 135p per share (the "Placing") to raise £500,000.

The Placing price of 135p represents a premium of 8.0% over the closing mid market share price on 6 July 2011 (being the last practicable date prior to the issue of this announcement).

The proceeds of the Placing will be used to support Chamberlin's strategy to deliver growth via acquisitions as well as organically. The Board has identified a number of possible acquisitions and sees attractive growth opportunities in the foundries sector where Chamberlin has a well established position in castings requiring a high degree of specialist skills and process knowledge.

The 370,370 New Ordinary Shares represent 4.7% of the enlarged issued share capital of the Company. Application has been made for the New Ordinary Shares to be admitted to trading on AIM and it is expected that admission will take place on 12 July 2011. The New Ordinary Shares will rank pari passu with the existing shares of the Company. Following this allotment the total issued share capital of the Company will increase to 7,808,028 ordinary shares.

Charles Stanley Securities is acting as Nominated Adviser and Broker in relation to the Placing.

Gervais Williams, fund manager of The Diverse Income Trust plc, said,

"The characteristics of Chamberlin plc are well matched with the aims of The Diverse Income Trust plc, which seeks to invest in businesses with good and growing dividend income that progressively compound over time to deliver premium investment returns. We are delighted to support the management team at Chamberlin in funding their ambitious plans to take greater advantage of their current prospects."

Tim Hair, Chief Executive, commented, 

"We are delighted to have completed this placing, which both strengthens our shareholder list and our resources to deliver our acquisition strategy. We believe that there are exciting opportunities to grow our business and we continue to seek complementary acquisitions."

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