MXCP.L Regulatory News (MXCP)

24 February 2011

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.

2ergo Group plc

Placing to raise £3 million

2ergo Group plc (AIM: RGO, "2ergo" or "the Company"), the international mobile business and marketing solutions company, announces today that the Company has raised £3m (before expenses) through the placing of 2,380,953 new ordinary shares of 1p each in the capital of the Company ("Placing Shares") with new and existing shareholders at a price of 126 pence per Placing Share ("Placing Price") (the "Placing").

The Placing Price is at a discount of 1.9 per cent. to the closing middle market price of 128.5 pence per ordinary share on 23 February 2011, the latest date prior to this announcement.

The net proceeds of the Placing will provide the Company with additional working capital and the funds to bring forward certain capital expenditure plans to build on forthcoming opportunities.

Neale Graham, Joint CEO of 2ergo, commented:

"We are delighted that both existing and new shareholders are supporting our growth strategy. It is fantastic to be in a position to bring forward development to maximise on opportunities that have presented themselves sooner than anticipated.

"2ergo is entering an extremely exciting period in the rapidly expanding mobile market".

The Placing is conditional, amongst other things, on the placing agreement between the Company and Numis Securities Limited ("Numis") becoming unconditional and on admission of the Placing Shares to trading on AIM ("Admission") becoming effective by no later than 8 March 2011.Under the terms of the placing agreement, Numis, as agent for the Company, has agreed to use its reasonable endeavours to procure placees for the Placing Shares at the Placing Price.

It is expected that Admission will occur, and dealings in the Placing Shares will begin, at 8.00 a.m. on 1 March 2011. The Company has agreed to pay to Numis a placing commission together with certain costs and expenses incurred in connection with the Placing. The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares in the Company. Following completion of the Placing, the total number of issued ordinary shares in the Company will be 35,302,074.

Enquiries:

About 2ergo Group plc

2ergo is the international mobile business and marketing solutions company. It combines innovative proprietary mobile technologies and professional services to help organisations of all sizes to develop and execute their mobile strategy.

Organisations such as ESPN, the Australian Broadcasting Corporation, Vodafone Hutchison Australia, Fox Sports, Fox Business, Orange, Aviva, Fidelity, Transport for London, Ladbrokes, Times of India, Airtel, O2 and Proctor & Gamble have all benefited from 2ergo's proprietary end-to-end mobile solutions to increase sales, mobilise business processes, reduce costs and enhance customer relationships.

2ergo touches all types of mobile users millions of times each day through innovative mobile business solutions that incorporate search, security, advertising, location, proximity, coupons, tickets, mCommerce and data network analytics enabling full-integrated and personalised one to one marketing communications.

Headquartered in the UK, 2ergo has been a pioneer of enabling innovative mobile business solutions across multiple sectors and geographies since 1999. Its international presence spans North America, Latin America, India and Australia. 2ergo is AIM listed on the London Stock Exchange (AIM: RGO). For more information, visit www.2ergo.com

This announcement is for information purposes only and does not constitute an offer to sell or an invitation to subscribe for or a solicitation of an offer to buy or subscribe for any securities in any jurisdiction including in which such an offer or solicitation is unlawful and is not for distribution in or into, without limitation, the United States, Canada, Australia or Japan (the "Excluded Territories"), or to US persons (within the meaning of Regulation S of the United States Securities Act 1933 (as amended) (the "Securities Act").

The Placing Shares have not been and will not be registered under the Securities Act or under the applicable securities laws of any state in the United States or any Excluded Territory and, unless an exemption under such act or laws is available may not be offered for sale or subscription or sold or subscribed directly or indirectly within the Excluded Territories or for the account or benefit of any national, resident or citizen of the Excluded Territories. No public offering of securities will be made in the United States. The distribution of this announcement in other jurisdictions may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdictions.

Numis, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for 2ergo and for no one else in connection with the Placing and will not be responsible to anyone other than 2ergo for providing the protections afforded to clients of Numis nor for providing advice in relation to the Placing or any other matters referred to in this announcement.

The contents of this announcement are not to be construed as legal, financial or tax advice. If necessary, each recipient of this announcement should consult his, her or its own legal adviser, financial adviser or tax adviser for legal, financial or tax advice.

This announcement contains certain statements that are or may be "forward-looking statements". These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import. All the statements other than statements of historical facts included in this announcement, including, without limitation, those regarding 2ergo's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to 2ergo's products and services) are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and therefore undue reliance should not be placed on such forward-looking statements. There are a number of factors that could cause the actual results, performance or achievements of 2ergo or those markets and economies to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding 2ergo's present and future business strategies and the environment in which 2ergo will operate in the future and such assumptions may or may not prove to be correct. Forward-looking statements speak only as at the date they are made. Neither 2ergo, nor Numis nor any other person undertakes any obligation (other than, in the case of 2ergo, pursuant to the AIM Rules for Companies) to update publicly any of the information contained in this announcement, including any forward-looking statements, in the light of new information, change in circumstances or future events.