ISG.L Regulatory News (ISG)

1 February 2016

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

ISG plc ("ISG" or the "Company")

Response to Mandatory Offer of 171p per share

The Board of ISG notes the announcement by Cathexis UK Holdings Limited ("Cathexis") that its revised offer of 171p per share is now a mandatory offer for ISG, which is only conditional on Cathexis receiving acceptances to give it, and persons acting in concert with it, ISG shares carrying, in aggregate, more than 50% of the Company's voting rights (the "Mandatory Offer").

The Board of ISG continues to strongly advise all shareholders to take no action and, in particular, not to sell their ISG shares. Shareholders will note that Cathexis acquired a small number of shares on Friday and it is possible that Cathexis will seek to continue acquiring ISG shares in the market at up to 171p (the level of the Mandatory Offer) which not only risks a change in control but could also, separately, place the Company's dividend at risk for all shareholders.

The Board will be issuing its formal response to the Mandatory Offer once the next offer document has been posted.

The Board reminds shareholders of the previous very low level of shareholder acceptance (1.7%) of Cathexis' unsolicited offer of 143p per share and the very small incremental purchase of 0.6% of ISG shares on Friday.

ALL ISG SHAREHOLDERS ARE ADVISED TO TAKE NO ACTION WHATSOEVER.

Enquiries:

ISG plc

Numis

Disclaimer

Numis Securities Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for ISG and no one else in connection with the Mandatory Offer and the contents of this announcement and will not be responsible to anyone other than ISG for providing the protections afforded to its clients nor for providing advice in connection with the Mandatory Offer or any matter referred to herein.

Publication on Website

A copy of this announcement will be available on the Company's website (www.isgplc.com) by no later than 12 noon (London time) on 2 February 2016. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

Responsibility statement

The Directors of ISG accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the Directors, who have taken all reasonable care to ensure such is the case, the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.