IMJ.L Regulatory News (IMJ)

6 Mar 2007 07:01

Embargoed for release at 7.01 am on 6 March 2007 Amteus plc ("Amteus", the "Company" or the "Group") Placing to raise ‚£3.5 million

Amteus, the provider of private and secure IP based business communications software, announces that it has conditionally raised ‚£3.5 million, before expenses, from the placing by John East & Partners Limited ("John East & Partners") of 4,862,500 ordinary shares in the capital of the Company ("Ordinary Shares") at 72p (the" "Placing Price") per share (the "Placing Shares") with institutional and other investors.

The net proceeds of the placing, amounting to ‚£3.14 million, will be applied to provide additional working capital to support the product launch of the Company's private and secure instant messaging product, to repay a short term bank facility of up to ‚£75,000 and to repay a build-up of trade and other non-related party creditors.

Mr Michael Abrahams (Chairman), Mr Simon Duffy (Non-Executive Director) and The Right Honourable Michael Howard QC MP (Non-Executive Director) have subscribed for 20,900, 118,100 and 48,700 Placing Shares and on Admission of the Placing Shares to trading on AIM they will hold Ordinary Shares representing 0.17, 0.30 and 0.12 per cent. of the then enlarged issued share capital of the Company, respectively.

In addition, Jeffrey Morris, Executive Deputy Chairman of the Company, has agreed to capitalise loans (together with accrued interest) amounting to approximately ‚£792,000 into 1,100,000 Ordinary Shares at the Placing Price.

As the issue of the Placing Shares utilises most of the directors' available authority to issue shares for cash, ‚£108,000 of the loans will be capitalised on Admission by the issue of 150,000 Ordinary Shares (the "Initial Debt Capitalisation Shares") and the balance of ‚£684,000 will be capitalised by the issue of 950,000 Ordinary Shares following the Company's next Annual General Meeting, at which resolutions seeking to renew the directors' authorities to issue shares will be proposed.

Following the initial capitalisation of the loans, Mr Morris will have a beneficial interest in 19,761,670 Ordinary Shares, representing 50.05 per cent. of the then enlarged issued share capital of the Company. Following the capitalisation of the balance of the loans, Mr Morris will have a beneficial interest in 20,661,670 Ordinary Shares, representing 51.22 per cent. of the then enlarged issued share capital of the Company (assuming that no further shares are issued before the next AGM).

Following the issue of the Placing Shares and the Initial Debt CapitalisationShares, the Company will have 39,487,078 Ordinary Shares in issue. Applicationwill be made for the Placing Shares and the Initial Debt Capitalisation Sharesto be admitted to trading on AIM. Dealings in these shares are expected tocommence on 12 March 2007. Enquiries:Amteus plc 01756 770376 Michael Abrahams (Chairman) 020 7628 2200 John East & Partners Limited 01756 770376 John East/Simon Clements/Johnny Townsend Rawlings Financial

John Rawlings