Dillistone Regulatory News (DSG)

25 May 2010

DILLISTONE GROUP PLC

BOARD APPOINTMENT

Dillistone Group Plc ("Dillistone" or the "Company"), the AIM quoted supplier of recruitment software, is pleased to announce that Giles Robin Fearnley will join the board of Dillistone ("Board") as a Non-Executive Director with effect from 1 June 2010.

Giles, 55, is an experienced business man who has 35 years' experience in the passenger transport industry, spanning both rail and bus. Having been one of the founders of Prism Rail PLC he then led that group as chief executive from its formation through to its sale to National Express PLC in 2000. Prism Rail operated four of the UK's passenger rail franchises WAGN, C2C, Wales & West and Valley Lines. Giles additionally served as chairman of ATOC in 1999 and 2000. Giles was instrumental in leading a management buy-out of Blazefield Holdings in 1991 encompassing a portfolio of bus businesses across Yorkshire and Lancashire. Having sold the group to Transdev plc in early 2006, he stayed on as its chief executive for a further two years. Giles was President of the Confederation of Passenger Transport (UK) in 2008 and in April 2009 was appointed its first non-executive Chairman.

Mike Love, Chairman of Dillistone, commented:

"We are delighted to welcome Giles to the Board and look forward to working with him in his capacity as Non-Executive Director. We believe that Giles' wealth of experience as an entrepreneur, successful businessman and as a director of both private and public companies will be invaluable to Company in terms of its continued development and promotion."

Giles is currently a director of the following companies:

GTV Screen Media Limited

North Yorkshire Moors Railway Enterprises plc

Lynfield Leasing Limited

Confederation of Passenger Transport UK

Sovereign Trains Limited

GCRC Holdings Limited

Grand Central Railway Company Limited

Grand Union Railway Company Limited

GURC Holdings Limited

CNRE Limited

CSRE Limited

Grand Northern Railway Company Limited

Grand North Eastern Railway Company Limited

Transdev plc

Media 42 Limited

Subtv Limited

Dales and Bowland Community Interest Company

Oval (2207) Limited

Deramore Limited

Giles is also a partner of Abellio Non Executives GmbH and Co KG.

In the past 5 years Giles has been a director of the following companies:

Transdev Blazefield Limited

Blazefield Buses Limited

Keighley & District Travel Limited

Blazefield Travel Group Limited

Harrogate & District Travel Limited

Heathrow Coach Services Limited

Transdev Claims Investigations Limited

Yorkshire Coastliner Limited

Lancashire United Limited

Burnley & Pendle Travel Limited

Open Roads Limited

Tourkits Limited

Confederation of Passenger Transport UK

Advenza Freight Limited

Cotswold Rail Engineering Limited

Nottingham City Transport Limited

Sovereign Bus & Coach Company Limited

Welwyn & Hatfield Line Bus Company Limited

Blackburn Transport Limited

Burnley and Pendle Transport Company Limited

Sovereign Hst Limited

Abellio GmbH

Giles Fearnley was a director of Advenza Freight Limited, a rail freight business, between 21 September 2004 and 15 May 2009. On 7 October 2009 the company was placed into a compulsory liquidation. The Official Receivers report to the creditors estimated the deficiency (excess of liabilities over assets) to be £3,417,664. The liquidation is still ongoing.

In addition, Giles was a director of Cotswold Rail Engineering Limited, the holding company of Advenza Freight Limited, between 20 December 2005 and 15 May 2009 which was placed into a voluntary creditors liquidation on 23 December 2009. The Official Receivers report to the creditors estimated the deficiency (excess of liabilities over assets) to be £2,109,499. The liquidation is still ongoing.

The majority of the creditors of Advenza Freight Limited and of Cotswold Rail Engineering Limited are directors or former directors of the respective company or companies controlled by directors or former directors of the respective company.

Giles currently holds 331,145 ordinary shares of 5 pence each in Dillistone which represents approximately 5.84% of the issued share capital of the Company.

In accordance with paragraph (g) of Schedule Two to the AIM Rules for Companies, the Company confirms that there are no further matters to be disclosed in respect of Giles Fearnley's appointment.

Contacts:

Mike Love Dillistone Group Plc 0207 749 6100

Chairman

Jason Starr Dillistone Group Plc 0207 749 6100

Managing Director

Emily Staples (Nomad) Religare Capital Markets 0207 444 0800

Daniel Briggs (Broker) Religare Capital Markets 0207 444 0500