Earthport Regulatory News (EPO)

22 October 2012

Earthport plc

("Earthport" or the "Company")

Successful Placing

Earthport (AIM: EPO.L), the cross-border payments service provider, is pleased to announce that it is raising gross proceeds of £8.0 million through the placing and subscription of 55,186,372 new ordinary shares (the "New Ordinary Shares") at 14.5 pence per share (the "Placing"). The funds are being raised from both existing and new institutional investors.

Highlights

·; Gross proceeds of £8.0 million through a placing and subscription with new and existing investors.

·; Funds will be used to accelerate growth, for geographic expansion and representation, continued execution of direct sales strategy and increase sales channel partner program.

Background to the Placing

During the course of 2012, the Company has achieved some significant milestones in its development, including:

·; Country network expanded to a total of 54 countries with several more in progress

·; 19 new customers signed in the year, 12 customer implementations went live with an additional 13 customers contracted but not yet live

·; Transaction volumes increased by 53% year on year, accelerating through the year

- Increase in June 2012 of 103% compared to June 2011

- Increase in August 2012 of 131% compared to June 2011

·; Developed new professional services and consultancy revenue streams

The funds raised will facilitate the continued growth of Earthport, particularly to accelerate the Group's expansion of country coverage through regional representation and presence. Additionally, Earthport will continue with the execution of its direct sales strategy and in its sales channel partner program.

Details of the Placing

The completion of the Placing is conditional, amongst other things, on the admission of the New Ordinary Shares to trading on AIM. Further, the issue of 3,151,724 (representing £457,000 of the £8m) of the New Ordinary Shares is conditional upon the approval of HMRC that these shares are eligible shares for the purposes of the Enterprise Investment Scheme ("EIS Shares").

Application has been made for the 52,034,648 New Ordinary Shares issued pursuant to the Placing to be admitted to trading on AIM ("Admission"). Admission is expected to take place on 25 October 2012. Application will be made for the 3,151,724 EIS Shares issued pursuant to the Placing to be admitted to trading on AIM following receipt of HMRC approval. The New Ordinary Shares will rank pari passu in all respects with the existing issued ordinary shares.

Following Admission of the New Ordinary Shares, the Company's enlarged issued share capital will comprise 337,158,111 ordinary shares ("Ordinary Shares") with each share carrying one vote per share. There are no shares held in treasury.

Bay Capital Partners Limited is subscribing for 20,689,655New Ordinary Shares. Hank Uberoi, a director of Earthport, is Vice-Chairman and is a non-controlling shareholder of Bay Capital Partners Limited. Following the Placing Hank Uberoi will be directly interested in 10,281,818 ordinary shares, representing 3.0% of the enlarged issued share capital, and Bay Capital Partners Limited will be interested in 27,309,655 ordinary shares representing 8.1% of the enlarged issued share capital.

Hank Uberoi, Executive Director, Earthport commented:

"Earthport has achieved significant progress over the last year, with several major customer signings and go lives. In addition, network coverage expanded and transaction volumes increased throughout the year and have continued to do so post the year end. The additional funds will be used to continue to accelerate the growth of the business, and in particular drive further geographical expansion, direct sales and channel partner programs.

"We are delighted to have had such strong support both from new and existing shareholders; the response to this Placing underlines the continued support and belief that the Company and its shareholders have in the objectives and potential of the business."

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About Earthport

Earthport plc, a global financial services organisation, is a market leader in the provision of white-label cross border payment services. Through its international platform, Earthport provides low cost, secure, high volume global payment capabilities in 200 countries worldwide.

The Company has been making national and international payments and collections since 1998, and is regulated through its UK Financial Services Authority (FSA) status and SWIFT membership. Providing a transparent and reliable service, partners include some of the largest financial institutions and corporations in the world.

Earthport operates worldwide and is listed on the AIM market of the London Stock Exchange. To learn more, please visit www.earthport.com and follow us on Twitter @Earthport.