Dillistone Regulatory News (DSG)

3 October 2014

Dillistone Group Plc

("Dillistone", the "Company" or the "Group")

Additional £500,000 placing

On 30 September 2014, Dillistone Group Plc, the AIM quoted supplier of software and services for the recruitment sector, announced a placing at 95p per share to raise £500,000 (before expenses) to finance part of the initial cash consideration due in respect of the acquisition of ISV Software Limited.

The Company is pleased to announce today that WH Ireland has carried out a further placing on behalf of Dillistone of 526,316 new ordinary shares of 5p each in the share capital of Dillistone ("Placing Shares") to raise, also at a price of 95p per Placing Share, an additional £500,000 (before expenses) which will be used by the Group for working capital purposes.

The issue of 263,158 of these Placing Shares, to raise proceeds of £250,000, is conditional only upon admission of such shares to AIM ("Admission"), which is expected to take place by 9 October 2014.

The issue of the remaining 263,158 Placing Shares is conditional upon both Admission and also the Company receiving provisional clearance from HMRC that such Placing Shares will be eligible for the purposes of section 285(3A) of the Income Tax Act 2007 and that they will be qualifying holdings for the purposes of Chapter 4, Part 6, Income Tax Act 2007. It is expected that such clearance will be received by 30 November 2014, whereupon the Company will apply for such shares to be admitted to trading on AIM.

Dr Mike Love (Chairman) and Mr Jason Starr (Chief Executive) are respectively subscribing for 252,632 and 10,526 Placing Shares. Their participation is regarded as a related party transaction for the purposes of the AIM Rules for Companies. With the exception of Dr. Mike Love and Mr Jason Starr, the directors of the Company consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Following the Placing Dr. Mike Love's beneficial holding will be 703,254 Ordinary Shares and Mr Jason Starr's will be 3,564,959 Ordinary Shares.

Enquiries:

Notes to Editors:

Dillistone Group Plc (www.dillistonegroup.com) is a leader in the supply and support of software and services to the recruitment industry. It has four trading businesses operating through two divisions: Dillistone Systems, which targets the executive search industry (www.dillistone.com); and Voyager Software, which targets other recruitment markets (www.voyagersoftware.com).

Dillistone has made three acquisitions: Voyager Software in September 2011, FCP Internet in July 2013 and ISV Software in September 2014. The Group operates under the FileFinder, Infinity, Evolve and ISV brands.

Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006. The Group employs over 100 people globally with offices in London (head office) Basingstoke and Southampton, Frankfurt, New Jersey and Sydney.