FRM.L Regulatory News (FRM)

2 May 2006 15:44

Formation Group PLC02 May 2006 FORMATION GROUP PLC ("Formation" or "the Company") Property Fund and Issue of Equity Formation Group PLC, the sports marketing and management business, is pleased toannounce that David Kennedy, a property developer, has agreed to acquire11,487,381 new ordinary shares of 1p each in the share capital of the Company("New Ordinary Shares") by way of a placing at 7.375 pence per share, the midmarket price at close of business on 28 April 2006. David Kennedy's resultantshareholding following the placing will account for 9.1% per cent of Formation'senlarged issued share capital. Mr Kennedy will be assisting the Company in creating and managing its ownproperty fund which will be marketed to the clients of Kingsbridge AssetManagement, the Company's Wealth Management Division, as well as other high networth individuals. This fund will be launched later in the year. Application will be made for the New Ordinary Shares to be admitted to tradingon AIM. Dealings are expected to commence on 9 May 2006. The New Ordinary Shares will rank pari passu with the ordinary shares of 1p eachin the capital of the Company currently in issue ("Ordinary Shares"). Followingthe issue of the New Ordinary Shares, the number of Ordinary Shares in issuewill be 126,361,196. For further information, please contact: Neil Rodford, Chief Executive, Formation Group PLC Tel: 01625 539832David Youngman, WH Ireland Limited Tel: 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange