Produce Investments Regulatory News (PIL)

29 September 2016

PRODUCE INVESTMENTS PLC

("Produce," "Company" or the "Group")

BOARD CHANGES

Chairman and Finance Director to step down from the Board and Appointment of Neil Davidson as Chairman

Produce Investments plc, (AIM:PIL) ("Produce," "Company" or the "Group"), a leading operator in the fresh potato and daffodil sectors, announces that Barrie Clapham, Chairman and Brian Macdonald, Finance Director, will step down from their respective roles as Chairman and Finance Director of Produce.

Barrie has been Chairman of the Company since 2006 but has notified the Board of his intention to step down at the Company's AGM on 28 October 2016. Barrie has Chaired Produce Investments since its inception in 2006 and has presided over its admission to the AIM market of the London Stock Exchange, as well as the acquisitions of Swancote Foods, Rowe Farming and Jersey Royal Company.

Neil Davidson, who has been a member of the Board since 29 June 2016 will take over as Chairman following the Company's AGM on 28 October 2016. Neil has over 30 years' experience in the agri-food sector. He was previously Chief Executive of Arla Foods and Chairman of Cherry Valley Farms. In addition, he was also recently appointed as a Non-Executive Director of WM Morrison Supermarkets plc.

Brian Macdonald will be succeeded by Jonathan Lamont, who joined the business as Group Financial Controller at the start of July 2016. Jonathan has gained extensive experience having held a number of senior finance roles both in the UK and abroad with FMCG businesses, including in the agri-food sector. It is expected that Jonathan will join the Board on 1 January 2017 subject to the satisfactory completion of the necessary regulatory requirements.

Angus Armstrong, Chief Executive, said:

"I would like to thank Barrie for his contribution to Produce Investments over the last 10 years. The Board has been fortunate to have Barrie as Chairman for over a decade and we wish him the very best for the future.

"Neil has already provided sound advice to the Board during his time as a Non-Executive Director and I am pleased to welcome him as our new Chairman. Neil's extensive knowledge and experience in the agri-food sector will continue to be a huge asset to the Board and the Company and we look forward to working with him closely over the coming years.

"Brian has been Finance Director of Produce for over eight years and I would like to thank him for his significant contribution and commitment to the business. He was central to our successful admission to the AIM market of the London Stock Exchange in 2010 and has played a substantial role in helping us grow and develop the business since. I am delighted that we will retain his services on a consulting basis.

"I am pleased to welcome Jonathan Lamont into his new role. Jonathan has gained extensive experience having held a number of senior finance roles both in the UK and abroad with FMCG businesses, including in the agri-food sector. I am confident he will be successful in his new role and we look forward to working with him as we continue with our growth strategy."

Barrie Clapham, Chairman, said:

"I am honoured to have served as Chairman of Produce Investments for over 10 years and have greatly enjoyed my time with the company. I am delighted that Neil Davidson will be taking over as Chairman and I wish him every success in his new role."

Neil Davidson, non-executive director, said:

"Barrie has made a huge contribution to the development of the Company as chairman over the past 10 years. Consequently Produce Investments is a much more diverse and robust business than it was in 2006, with a greater product offering and broader customer base. I look forward to working with the board to further deliver the strategy the Company has set out."

Further details relating to the appointment of Neil Davidson as Chairman

It is proposed that in connection with Mr Davidson's appointment as Chairman of the Company, and in recognition of the commitment he will be making to the Company to deliver improved shareholder value, he will be offered 454,545 options over ordinary shares in the Company (the "Options"). In addition, Mr Davidson will also receive an annual salary. This remuneration package is conditional upon shareholder approval at the Company's AGM on 28 October 2016.

The Options, which will be exercisable at nominal value, will vest upon the Company's weighted average share price exceeding £2.20 over a rolling period of 65 trading days. Subject to limited exceptions, any shares acquired pursuant to the option may not be sold for a period of 2 years after exercise.

In all other respects, the proposed Options are in line with options previously granted by the Company under its existing long term incentive plan.

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Notes to Editors

The Group is a vertically integrated potato and daffodil company supplying blue chip customers including Tesco, Sainsbury, Asda, Waitrose and Marks & Spencer.

Website: www.produceinvestments.co.uk