FST.L Regulatory News (FST)

17 Jul 2007 07:00

Embargoed Release: 07:00hrs Tuesday 17th July 2007

Nanoscience Inc. (`Nanoscience' or the `Group') Placing of 32,536,467 new ordinary shares Saad Investments Company Limited takes 9.8 per cent. stake through participation in a ‚£3.25 million fundraising round

Nanoscience, the specialist niche investor in emerging technologies with strong commercial propositions from within the growing nanotechnology sector, is pleased to announce that it has today agreed to place, in aggregate, 32,536,467 new ordinary shares of 0.25 pence each in Nanoscience ("Placing Shares") at a placing price of 10 pence per share, to raise approximately ‚£3.25 million (the "Placing"). This Placing has been underpinned by Saad Investments Company Limited (`Saad Investments'), who has taken a 9.8 per cent. stake in the Group's enlarged share capital, alongside further investments from certain of the Group's Directors and existing major shareholders including Glastad Invest, Herald Investment and Majedie Investments.

The Group will use the proceeds from the Placing to provide additional working capital to support and accelerate the continuing successful commercialization of the Group's two main investee companies; its wholly owned subsidiary Toumaz Technology Limited (`Toumaz'), and Future Waves Pte. Limited (`Future Waves') in which it holds a 28.9 per cent. interest. Toumaz remains confident that further significant commercial agreements can be concluded in 2007, which will establish critical positioning in the Healthcare sector for its Sensium¢â€ž¢ chip. Future Waves continues to expand its order book for its Fenix¢â€ž¢ chip and further positive progress is expected through the second half of this year. Sentinel Healthcare Solutions Limited, Nanoscience's 50 per cent. joint venture company, expects to launch commercial product aimed at the Dementia market in the first quarter of 2008.

The Placing is being effected utilising the Directors' existing authority to allot equity securities on a non pre-emptive basis, granted at the Annual and Extraordinary General Meetings held on 6 September 2006 and 21 December 2006 respectively.

The Placing Shares will represent approximately 14.96 per cent. of the Group's enlarged issued share capital and will rank pari passu with the Group's existing ordinary shares of nominal value 0.25 pence each ("Ordinary Shares"). Following the issue of the Placing Shares, the Group's issued share capital will consist of 217,459,138 Ordinary Shares, with voting rights. The Group does not hold any Ordinary Shares in Treasury.

The discloseable interests of the Group's Directors who are participating in the Placing, together with the revised significant interests of the other principal Placees are as set out below:

Shareholder Previous Placing Resultant Holding Percentage of Holding Shares following Admission enlarged Subscribed of the Placing issued share Shares capital Saad Investments Nil 21,330,500 21,330,500 9.81Company Limited Glastad Invest 19,371,882 1,000,000 20,371,882 9.37Limited Majedie 10,175,000 1,780,625 11,955,625 5.50Investments Herald Investment 9,800,000 3,500,000 13,300,000 6.12Management Keith Errey 7,776,865 100,000 7,876,865 3.62 Nanoscience Directors: Serge Grisard 800,000 50,000 850,000 0.39 Guy Spelman 410,000 104,215 514,215 0.24 Chris Toumazou 10,945,217 100,000 11,045,217 5.08

Application will be made for admission of the Placing Shares to trading on AIM. It is expected that admission will become effective and that dealings in the Placing Shares will commence on 20 July 2007.

The aforementioned figure of 217,459,138 Ordinary Shares may be used by shareholders in the Group as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of Nanoscience under the Financial Service Authority's Disclosure and Transparency Rules.

Guy Spelman, CEO, commented:

"We are very pleased to welcome Saad Investments as a new shareholder in our business.

As outlined in our recent annual report, we are concentrating the Group's efforts and resources in supporting the substantial commercial progress achieved by our two main investee companies; our wholly owned subsidiary Toumaz and Future Waves in which we hold a 28.9 per cent. interest.

Throughout the course of the last year, both of these companies made significant progress including the achievement of commercial product launches, strategic partnerships and major design wins with some of the largest consumer goods producers in their respective markets. This progress has continued into 2007. The fund raising announced today, will leave Nanoscience well placed to support these high-growth businesses through to their positive cash flow generation whilst protecting their valuable IP and enabling us to secure maximum value for our shareholders.

I look forward to reporting further on the commercial progress of both of thesebusinesses in due course.' -Ends- Further information:Richard Rose Nanoscience Inc. 07836 250 474 Simon Raggett Strand Partners Limited 0207 409 3494 Matthew Chandler Andrew Tan Hansard Group 020 7245 1100 www.hansardgroup.co.uk

About Toumaz (www.toumaz.com):

Toumaz, winner of the first prize at the fifth Oracle PartnerNetwork (OPN) Innovation Awards for Europe, the Middle East and Africa, is a developer of advanced RF, analogue and mixed signal semiconductors. The focus of the business is low power devices based on the company's proprietary AMx¢â€ž¢ (Advanced Mixed Signal) technology which addresses the needs of lower power consumption for mobile and wirelessly connected systems.