OUT.L Regulatory News (OUT)

10 October 2014

Outsourcery plc

Subscription for new Ordinary Shares

Outsourcery plc (AIM: OUT, "Outsourcery", the "Company" or the "Group"), the pure-play provider of cloud-based IT and unified communications services, is pleased to announce that Encore Capital ("Encore"), a London-based investment firm focused on backing entrepreneurial growth businesses, has elected to invest £1.0 million in Outsourcery via the purchase of new Ordinary Shares in the Company.

Encore will subscribe for 5,000,000 new Ordinary Shares in the Company, representing 10.6 per cent. of the enlarged total issued share capital of the Company upon admission of the new Ordinary Shares. The new Ordinary Shares have been subscribed for at a price of 20 pence per new ordinary share, representing a 21.2 per cent. premium to the closing price of 16.50 pence on 9 October 2014 and mirroring the price of the recent equity issue announced on 14 August 2014.

On 14 August 2014, Outsourcery outlined details of a financing package that provided the Group with £4.5 million of working capital. Subsequent to this, on 24 September 2014, the Company confirmed its view that it is fully funded to profitability in the form of becoming EBITDA positive on a monthly basis by the end of 2015 and operational positive cash flow in the same time frame. The Company reconfirms that view today.

The funds invested by Encore give Outsourcery greater options to pursue and accelerate its growth, particularly in the mid-market segment and in the enterprise arena, where earlier this year the Company secured its first large-scale FTSE 100 end customer via a major channel partner.

Application has been made to the London Stock Exchange for the 5,000,000 new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 15 October 2014. The new Ordinary Shares will, when issued, rank pari passu in all respects with the existing Ordinary Shares. Upon admission, the enlarged issued share capital of the Company will be 47,263,958 Ordinary Shares.

Commenting on the investment, Ken Olisa OBE, Non-Executive Chairman, said:

"I am pleased to welcome Encore to the Outsourcery share register as an investor with a strong track record of recognising and working collaboratively to grow high potential businesses. Their investment builds upon the stronger financial platform laid down in August to give us additional financial firepower to take advantage of the position which we have established in the emerging Cloud services market."

For further information please contact

About Outsourcery

Outsourcery is a leading Cloud Service Provider based in the UK focused on the delivery of cloud-based applications, infrastructure and unified communications solutions to business of all sizes via its partner and as direct customers in the mid-market. The Group focuses on Microsoft technologies due to the significant installed base and disruptive entry into new markets such as unified communications. Cloud computing represents a systemic evolution in the way that IT platforms, applications and communications ("ICT") solutions are provided in a more cost effective and efficient way. The ICT model is rapidly shifting from a physical technology purchase to the consumption of services with a specified uptime service level on a monthly subscription basis. Outsourcery has invested in its platform and capabilities to apply economies of scale to provide highly resilient and secure services to a range of end-customers from shared platforms in its UK datacentres. These services are deployed on its proprietary O-Cloud platform, a combination of software, hardware and networking, which is housed in a third-party enterprise grade datacentres and services for the UK central Government will be deployed in its new Secure O-Cloud platform (formerly IL3).

Further, detailed information on the Group is available in the Investor Centre on the Outsourcery website:

(www.outsourcery.co.uk/investors)

About Encore Capital

Encore is a London based investment firm focused on backing entrepreneurial growth businesses. Encore has over £60m of committed funding and actively seeks to invest between £1m and £10m in buy outs and development capital opportunities. Encore is opportunity driven with a structure and approach that allows it to make informed decisions quickly. Encore is owned and managed by its Partners who have a proven track record in building and realising value for shareholders and management teams.

Encore takes an active role in building and supporting strong management teams. It works closely with portfolio companies to develop strategic plans, enhance organic growth, pursue value creating acquisitions, and increase operational efficiencies.

(www.encorecapital.co.uk)

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