INC.L Regulatory News (INC)

16 December 2011

INSETCO PLC

("Insetco" or the "Company")

Update on issuance programme & Issue of Convertible Loan Notes

Senior Life Settlement Issuance Programme

Further to the Company's announcement on 5 May 2011, Insetco has continued to look for opportunities to structure institutional-based financial products for the Life Settlements market, with a view to moving towards the distribution of its first securitised product, the Senior Life Settlements issuance programme (the "SLS Issuance Programme"), based on the experience and expertise the Company acquired through the purchase of Saolpoll (Jersey) Limited ("Saolpoll") and related business assets in March 2011.

Whilst Insetco continues to progress the SLS Issuance Programme, the Company is pleased to announce that it has now entered into an agreement with Quantus Income Opportunities Corp ("Quantus") for the sale of a related Senior Life Settlement ("SLS") financial product. This product will take the form of an initial $5m subscription to a Profit Participating Note ("PPN") to be issued by a special purpose vehicle. The proceeds of the PPN will be invested by Quantus in a portfolio of senior life settlement policies, which will be structured into a product for secondary marketing by Quantus.

Insetco has received an initial fee of £250,000 in respect of the PPN issue. In addition, the Company will receive an additional fee of 0.25 per cent. of the face value of the policies injected into the portfolio per annum, on a non-recurring basis. This fee is capped at a maximum of $10m over the eight year life of the product.

Issue of Convertible Loan Notes

The Company also announces that it has issued, in aggregate, £125,000 of 8 per cent. Convertible Unsecured Loan Notes 2012 (the "CLNs") to ADM Investor Services International Limited ("ADM") and Fairburn Private Bank.

The CLNs are due for repayment on 21 November 2012 or, on the election of the noteholders, may be converted in whole or in part into new Insetco ordinary shares ("Ordinary Shares"), at a conversion price of 5.25 pence per Ordinary Share.

Full conversion of the CLNs would result in the issue of 2,380,952 new Ordinary Shares, representing 1.42 per cent. of the issued share capital (as enlarged thereby) of the Company.

ADM is considered a related party for the purposes of the AIM Rules for Companies, as a result, and in accordance with AIM Rule 13, the directors, having consulted with Charles Stanley Securities as nominated adviser, consider that the terms of the CLN issue are fair and reasonable insofar as the Company's shareholders are concerned.

Financing

The receipt of an initial fee for structuring the above SLS financial product, in conjunction with the proceeds of the CLNs, is sufficient to satisfy the Company's current working capital requirements.

Enquiries:

Insetco plc

Clive Cooke/Sanjeev Joshi 020 7887 7840

Charles Stanley Securities

Nominated Adviser

Russell Cook / Darren Vickers 020 7149 6000