HIBU.L Regulatory News (HIBU)

For Immediate Release 7 December 2012

hibu plc("hibu" or the "Group")

Restructuring update

On 25 October 2012, hibu announced it had decided to suspend all further payments of principal and interest to the Group's lenders until such time as a restructuring of its balance sheet can be concluded.

The Group has been in negotiations with the external lenders under its 2006 facilities agreement under which there is approximately £65m outstanding. These negotiations have now been concluded and hibu is pleased to announce that it has reached agreement on the terms of a settlement of the 2006 debt claim. Under this settlement, the external 2006 lenders will receive a payment in cash equal to 39 per cent of the total amount outstanding to them under the 2006 facilities agreement. This payment, which is expected to be made on 11 December 2012, will be in full and final settlement of all their claims under the 2006 facilities agreement. The settlement with these 2006 lenders is an important step in the restructuring process.

The Group has previously announced that it is seeking an extension to a number of waivers under the 2009 facilities agreement so that the restructuring discussions on the remaining £2.185bn of debt can proceed as effectively as possible. hibu and the Co-ordinating Committee of lenders under the 2009 facilities agreement (the "CoCom") have reached agreement on an overall timetable and next steps and, in particular, have agreed to move forward as quickly as possible to agree terms for a financial restructuring. The Group is aiming to agree terms with the CoCom during January 2013 and launch the restructuring process shortly thereafter. Accordingly, the Group would like to encourage lenders under the 2009 facilities agreement to give their consent to the waiver request published on 22 November 2012. The deadline to vote on this request is 14 December 2012. The CoCom has unanimously agreed to support the waiver request.

As previously stated, a number of capital structure options are being considered. The Group can confirm that the options being considered are likely to result in little or no value being attributed to the Group's ordinary shares.

Ends

About hibu

hibu helps communities thrive by facilitating millions of connections each year between consumers who want to find products and services locally and the merchants who provide them.

hibu helps consumers find local businesses and shop in new, innovative ways. Its dedicated online hibu markets provide comprehensive, convenient access to local goods and services. hibu helps merchants compete in the digital world with a broad range of marketing and commerce solutions delivered online and through hibu's direct sales teams. Building on its heritage as a premier directories provider, hibu continues to offer a full range of print- and distribution-based marketing services.

hibu operates in the UK, US, Spain, Argentina, Chile, Peru and US Hispanic markets. In the year ended 31 March 2012, hibu had 1.2 million SME customers and total revenues of £1.6 billion.

For further information about hibu, visit hibu.com.

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