INC.L Regulatory News (INC)

27 January 2012

Insetco plc

("Insetco" or the "Company")

Proposed acquisition update, Restoration to trading on AIM & Trading update

Proposed acquisition update

Further to the announcement on 24 November 2011, the Company confirms that the acquisition agreement entered into between Insetco and ARM Asset Backed Securities S.A. ("ARM") on 1 September 2011 (the "Acquisition Agreement"), in respect of the purchase of the assets of ARM, has now lapsed.

As previously outlined in the Company's announcements, the acquisition of the assets of ARM (the "Acquisition") was subject to, amongst other things, the approval of the relevant regulatory bodies. The decision by the Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier ("CSSF"), to decline to issue a licence to ARM and subsequently for the Court in Luxembourg to appoint Ernst & Young (Luxembourg) as a Supervisory Commissioner of ARM, had significantly extended the timescale of the regulatory approval process.

Despite further negotiations between Insetco and ARM, in conjunction with the relevant regulatory bodies and Ernst & Young (Luxembourg), it has not been possible to agree an extension to the existing Acquisition Agreement at this time.

Restoration to trading on AIM

As formal negotiations between Insetco and ARM in respect of the Acquisition, which would have represented a reverse takeover pursuant to the AIM Rules for Companies, have now ceased, Insetco will seek the restoration of trading in its securities on AIM. Restoration is expected to occur at 7.30am on 27 January 2012.

Trading Update

On 25 January 2012, the Company entered into an agreement under which Insetco will arrange for a client to acquire a portfolio of Senior Life Settlement ("SLS") policies. The initial agreement involves the acquisition of SLS polices with an aggregate face value of $25 million. Insetco will receive a minimum fee of 1 per cent. of the face value of the SLS policies acquired ($250,000) although the date for completion of this acquisition has yet to be determined. A further update will be made in due course.

Enquiries:

Insetco plc

Clive Cooke

Sanjeev Joshi 020 7887 7840

Charles Stanley Securities

Nominated Adviser

Russell Cook / Darren Vickers 020 7149 6000