RAM.L Regulatory News (RAM)

5 May 2010

RAM INVESTMENT GROUP PLC

('RAM' or the 'Company')

Update on Investments

On 25 September 2009 RAM announced that it had entered into two option agreements to purchase the remaining 50.1% of TrainFX Limited ("TrainFX"). RAM had entered into option agreements with Old Church Street Holdings Limited ("OCH") and the administrators of Vision Media Group PLC ("VMG") to acquire OCH's holding of 25.1% and VMG's holding of 25% of the outstanding shares in TrainFX. The options were at RAM's call only and could have been exercised up to 31st March 2010.

On 31 March 2010 the Company announced that it had reached agreements in principle with both VMG and OCH to extend these options to 30 June 2010.

New OCH option

RAM and OCH have agreed to terminate the option agreement signed in September 2009 and have entered into a new option agreement under which RAM will acquire OCH's entire holding of 25.1% of the outstanding shares in TrainFX for a consideration of 6 million ordinary shares in RAM ('OCH Option'). The OCH Option is at RAM's call only and may now be exercised at any time up to 30 June 2010.

VMG option deed of variation

RAM has entered into a deed of variation with the administrators of VMG to extend the option period to 30 June 2010 and effect certain other changes to the option agreement as set out below.

The Company has agreed to pay an extension fee of £55,000.

The consideration for the remaining 25% of the outstanding shares in TrainFX has been changed to a combination of £300,000 in cash to be paid to the VMG administrators and a £250,000 convertible loan note ("Loan Note") to be issued by RAM to the first fixed charge holder over VMG's assets, which includes its holding in TrainFX. The agreement now also allows RAM to pay £250,000 in cash on exercise of the option instead of issuing the Loan Note. The other commercial terms of the agreement were left unaltered, in particular, the option granted to the VMG administrators to subscribe for 1,466,276 ordinary shares in RAM at the price of 13.64p per share remains. This option is also at RAM's call only. 

ENDS

Contact:

For further information please call:

Tim Baldwin RAM investment Group Plc 0207 518 4303

Sandy Jamieson Libertas Capital Corporate Finance Limited 0207 569 9650

Thilo Hoffmann

Peter Greensmith Rivington Street Corporate Finance Limited 0207 565 3350

Jon Levinson