Gaming Realms Regulatory News (GMR)

2 July 2013

Pursuit Dynamics PLC

("PDX" or the "Company')

Sale of Pursuit Marine Drive

and

Statement re: Suspension

Pursuit Dynamics (AIM: PDX) announces that it has entered into a conditional agreement to sell its UK subsidiary Pursuit Marine Drive Limited ("PMD") to Cellulac Limited ("Cellulac") in line with the Group's announced strategy of realising value from the sale of its intellectual property and reducing liabilities. The sale of PMD is deemed to be a disposal resulting in a fundamental change of business under AIM Rule 15 and is, therefore, conditional upon shareholder approval at a general meeting.

A deposit of £50,000 in cash has already been paid to PDX. An additional cash sum of £950,000 may become payable on 31 December 2013 or earlier, subject to certain milestones being met by Cellulac but as the achievement of these milestones is uncertain and they are all outside the control of PDX, the Directors of PDX cannot assess the likelihood of these milestones being achieved. The assets of PMD comprise PDX Reactor intellectual property, Ethanol Reactor Systems installed in the US and various plant and equipment. The transaction also includes obligations to use reasonable endeavours to procure the transfer of two EU funded projects in biofuels and algae.

In the year ended 30 September 2012, the PMD business generated turnover of approximately £0.7 million (including £0.4 million in relation to the food, beverage and brewing business, whose sale was announced on 1 May 2013) and a loss before tax of £22.7 million. The gross assets attributable to PMD are £1.96 million. The proceeds will be used for future opportunities to create value for shareholders.

Upon completion of the proposed transaction, following approval at the general meeting, the Board will have eliminated almost all of the liabilities associated with PDX.

Over recent months, alongside the disposal programme, the Directors have been evaluating potential acquisitions. The Board is now in advance-stage negotiations in relation to an acquisition which would constitute a reverse takeover for the purposes of the AIM Rules and would be conditional upon, inter alia, the publication of an admission document by the Company and the approval of the Company's shareholders at a general meeting.

In accordance with the AIM Rules, trading in the Company's ordinary shares will be suspended with effect from 7:30 a.m. today pending publication of an admission document by the Company or an announcement that the proposed acquisition is no longer proceeding.

The proposed acquisition also remains conditional on, inter alia, the satisfactory conclusion of the Company's due diligence, and is subject to the granting of a waiver of the obligation to make a general offer pursuant to Rule 9 of the City Code on Takeovers and Mergers.

Whilst the proposed acquisition is at an advanced stage, there can be no certainty that it will be concluded successfully. Should the proposed disposal proceed and the proposed acquisition not conclude, the Company will be treated as an investing company under the AIM Rules and will send a circular to shareholders setting out an investing policy to be approved by shareholders at a general meeting. In this instance, the Company will then have to make an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14 or otherwise implement the investing policy approved at the general meeting within twelve months of becoming an investing company, failing which trading in the Company's shares would be suspended. If a company has been suspended from trading for six months the Exchange will cancel the admission of the ordinary shares.

A further announcement will be made in due course.

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