LWRF.L Regulatory News (LWRF)

JSJS DESIGNS PLC

(AIM: JSJS)

Appointment of Master UK Distributor

JSJS Designs ("JSJS" or "the Company"), the provider of innovative home automation technologies, announces the signing of a contract with Megaman UK, a subsidiary of Neolight Hong Kong, to be its sole distributor for the UK. The agreement between the companies also allows for further similar agreements in other core markets for the group, which should accelerate the possibility for core sales growth during 2014.

The detail of the contract will reduce the UK working capital to zero over the course of the next year, as all orders placed by Megaman UK will be paid for in cash in advance of shipment either from the UK or JSJS's Chinese partner factory.

The Company is in receipt of orders to the value of USD 238,000 for shipments direct from the Chinese factory for deliveries as soon as practicable and expects to receive orders in excess of GBP 100,000 for delivery from the UK during October, with a view to Megaman taking over distribution to all UK customers from 01 November 2013. One exception will be the existing store roll out to Maplin, which will be transferred at a later date.

Commenting, Mike Lord, Chairman and CEO said:

"We have seen much improvement in sales traction over recent weeks and one of our biggest concerns was to fund the working capital growth to sustain this into 2014. This deal with Megaman UK allows us to fund this growth, but more importantly to accelerate it further due to Megaman's reputation and significant distribution power into the UK wholesale and retail sectors. This continues the Company's strategic emphasis of finding distribution partners to allow us to concentrate on our core competence of electronic devices, software and app development.".

The deal is expected to generate cash of up to GBP 650,000 over the next six months as UK stock is transferred to Megaman.

About Neonlite

Neonlite Electronic & Lighting (HK) Limited, the brand owner of MEGAMAN®, is a global leader in the design, innovation and distribution of eco-friendly, energy efficient LED and CFL lighting products. The company has its own state-of-the-art manufacturing plants, an extensive network of concept stores, and wide distribution of its MEGAMAN® products in over 90 countries throughout the world.