OPP.L Regulatory News (OPP)

17 May 2007 09:17

Origo Sino-India PLC17 May 2007 RNS RELEASE May 17, 2007 ORIGO ISSUES CONVERTIBLE NOTE TO ISAK HOLDING LTD TO FUND GROWTH OF EUROPEAN FRANCHISE NETWORK Origo Sino-India PLC ("Origo")(LSE:OSI), the investment and strategic advisorycompany focused on the private equity markets of China and India,announced today that it has extended a convertible note of US$400,000 to Isak Holding Ltd ("Isak Holding" or "the Company") Isak Holding is a contemporary furniture company targeting mass distributionthrough a network of Company owned and franchised stores. Produced in China, theISAK collection of furniture and home accessories are delivered directly fromthe factory to a network of ISAK branded retail outlets in Europe. By cuttingout all middle-men in the value-chain, Isak Holding seeks to offer itsdistribution partners superior gross-margins, translating into highlycompetitive retail prices. Isak Holding recently concluded agreements with local partners to operate theISAK franchises in the Netherlands and Sweden. The partner in the Netherlands iscommitted to rolling-out and financing six ISAK branded shops over the next 36months, with the first store already opening for business in March this year.The agreement with Isak Sweden AB provides for eight retail locations to beopened before June 2010. These new distribution points complement two storesalready launched in Norway by Isak Norge A/S, the ISAK franchise holder for thatcountry. Under the credit facility extended by Origo, Isak Holding may draw-down up to US$400,000 for working capital purposes and operational expenses associated with the expansion of the Company's European distribution network. The note is repayable in full in the event of an external financing round, or convertible into equity at the discretion of Origo at a 50% discount to the then applicable price per share. Sigbjorn Dugal, CEO of Isak Holding, said: "Having gained proof-of-concept in Norway, arguably one of Europe's most competitive furniture markets, we are excited to expand the ISAK franchise to other European markets. The partnerships in the Netherlands and Sweden are critical corner-stones for this expansion strategy." Chris Rynning, the CEO of Origo, concluded: "These two partnerships validate Isak Holdings' value-proposition, business model, and execution capabilities. We are pleased to fund the roll-out of the ISAK franchise while locking-in the opportunity to subscribe for further equity in this exciting company." END For further information please call: Christopher Joll/Tim McCall, MJ2 020 7491 7776 Notes to Editors 1. Origo Sino-India plc ("Origo"): • Origo is an established and profitable private equity investor and strategic consultancy business, which provides its shareholders with exposure to growth opportunities and private equity returns in China and India. • Origo's business model is to generate capital gains from private equity investment in growth companies from which it also generates fees for consultancy services related to further fundraisings, M&A and strategic development. • Origo is aligned with two major institutions which provide a source of high quality deal flow. In China, Origo works closely with China Equity, a leading private equity firm, whose chief executive is on Origo's board. In India, Origo has entered into a memorandum of understanding with SBI Capital Markets, one of the longest established companies in the Indian Capital Markets. A former chairman of SBI is on the board of Origo. • Origo has signed agreements with 4 Chinese companies and 7 Indian companies to provide both financing and advisory services and has more than 20 potential investments in the pipeline. • At the AIM Placing in December 2006, Origo raised £12.8 million gross of new money via a placing of 25,673,238 Ordinary Shares at 50 pence per share. Each Ordinary Share carries a Warrant exercisable at 55p. Seymour Pierce Ltd is the nominated adviser and broker. 2. Isak Holding Ltd ("Isak Holding"): • Isak Holding is a contemporary furniture company targeting mass distribution through a network of company owned and franchised stores. • Isak Holding develops its own designs and branded collection of contemporary living furniture and accessories. Produced in China by a selected number of contract manufacturing partners, ISAK labeled goods are delivered directly from the factory to ISAK branded retail outlets. • The ISAK collection of branded goods is focused on living room furnishing. Supplementing its core-offering, the ISAK offering also include 2,000 quality-tested accessories, such as linen and silks garments, vases, candles, as well as contemporary art works. (www.isaklife.com) • Steeped in contemporary design with Oriental influences, the ISAK collection of high-quality sofas and living room furniture and accessory are designed to be equally at home in New York City lofts as in spacious living quarters from Stockholm to Shanghai. This information is provided by RNS The company news service from the London Stock Exchange