EGI.L Regulatory News (EGI)

7 September 2015

Electrical Geodesics, Inc.

Re Trading Share Lines

Electrical Geodesics, Inc. ("EGI" or the "Company"), a leading neurodiagnostic medical technology company, today announces the upcoming consolidation of the Company's two existing registers for its shares that are admitted to trading on the AIM market operated by the London Stock Exchange plc ("AIM") into a single register under the EGIC trading code and changes to the way in which shares will trade under this code.

Currently, EGI shares, all of which have identical voting rights, trade on two lines on AIM organised as follows: (i) EGIC, being unrestricted shares eligible for electronic settlement through CREST as depositary interests; and (ii) EGI, being shares which are subject to the conditions and restrictions of Regulation S of the U.S. Securities Act of 1933, as amended, ("Securities Act") which are held and settled in certificated form ("Restricted Securities"). Prior to 1 September 2015, the Restricted Securities could not be admitted for settlement in the CREST system as that system did not at that stage allow compliance with the restrictions applicable to such securities.

Regulation (EU) No. 090/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central depositories (the "CSD Regulation") requires where transactions in transferable securities take place on a trading venue (i.e. AIM), the relevant securities should be recorded in book entry form in a Central Securities Depository. In response to the CSD Regulation, on 1 September 2015, Euroclear UK & Ireland Limited ("EUI") introduced a new service to allow CREST members to settle certain Restricted Securities by means of the CREST system.

With effect from 4:30 p.m. (UK time) on 18 September 2015: (i) the EGI trading line (ISIN USU2830P2021) will be removed and the Company will transfer 23,088,283 common shares from the EGI line to the EGIC line; and (ii) the EGIC line will be identified as Restricted Securities and flagged as Regulation S within the CREST system. All AIM trading after this date will be under the Company's depositary interest (DI) line EGIC (ISIN US28501X2018). The purpose of this change is (i) to improve the liquidity of EGI's AIM listed shares and increase the transparency around EGI's share capital, total voting rights and market capitalisation in order to provide shareholders with clarification of EGI's position in the market; and (ii) to comply with the CSD Regulation. The Company expects that the Securities Act transfer restrictions which apply to certain of its shares will expire on 17 March 2016 and the Company will apply to CREST for the Regulation S restricted security flag to be removed at that time.

A full description of the service provided by EUI to allow electronic certification and settlement of Restricted Securities in the CREST system is available on EUI's website at https://my.euroclear.com/eui/en/news/consultations/regulation-s-category-3-settlement-service.html. Please note that users are required to have completed a registration process and log in to access EUI's website. Without limiting the full description, shareholders should be aware of the following features of this new service, which are necessary to ensure compliance with applicable restrictions under US law: (i) the new service is not available to US CREST members (as defined in the CREST Rules) or affiliates (as defined in the Securities Act) of EGI; and (ii) the Restricted Securities may not be acquired by US Persons (as defined in the Securities Act). In the event that holders of common shares take no action, their common shares will not convert into depository interest form but will continue to be held in certificated form and admitted to AIM. However, as noted above, certificated stock is not capable of electronic settlement in accordance with the CSD Regulation and will need to be dematerialised prior to electronic settlement. No common shares will be deposited into CREST without the positive action of the relevant shareholder.

Following the Transfer, 27,525,709 common shares will trade on AIM under the DI trading line EGIC (ISIN US28501X2018).

Accordingly, from 21 September 2015, all EGI shares admitted to trading on AIM will trade under EGIC, ISIN US28501X2018.

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Notes to Editors

Electrical Geodesics, Inc. in Summary

Founded in 1992, EGI designs, develops and commercialises a range of non-invasive neurodiagnostic and neuromodulation products used to monitor, interpret and modulate brain activity, based on its proprietary dense array electroencephalography ("dEEG") platform technology. The Company's technology uses up to 256 sensors, providing much higher resolution brain activity data compared to conventional 8 or 16 channel EEG and is used in medical, clinical and research settings in a diverse range of applications including important areas such as the diagnosis and monitoring of epilepsy, neurosurgical planning, sleep assessment, and many others.

EGI's dEEG systems, available in the GES 300 and now the GES 400 lines, capitalise on the Company's unique Geodesic Sensor Net which allows faster, easier, and more convenient placement of many EEG sensors in an even distribution over the entire scalp, providing more accurate and precise diagnosis and measurement. EGI's technology is now widely used in neuroscience research laboratories and is becoming more commonly used in clinics, care centers, and hospitals around the world. Data is measured and visualised using EGI's proprietary amplifier technology and software, providing a complete, advanced, high-resolution EEG platform. The Company's products are compatible with multiple diagnostic and imaging technologies, including magnetic resonance (MR) imaging, functional MRI (fMRI), and magneto-encephalography (MEG).

See our website www.egi.com