SGM.L Regulatory News (SGM)

SGM

SIGMA CAPITAL GROUP PLC

("Sigma")

Re: Frontier IP Group Plc

Placing and Admission to AIM

Sigma, the specialist asset management and advisory group, is pleased to announce that its subsidiary, Frontier IP Group Plc ("Frontier IP"), has announced today the completion of a share placing to raise £1.0 million gross at a placing price of 50p per share ("Placing") and application to the London Stock Exchange for admission of its issued and to be issued share capital to AIM. Admission and dealings on AIM are expected to become effective on 31 January 2011 ("Admission"). On Admission, Frontier IP will have a market capitalisation of approximately £3.5 million. For further details see Frontier IP's separate announcement which can be found on the PLUS Markets website.

Frontier IP's admission to AIM and the Placing are in line with Sigma's stated objective to further enhance Frontier IP's ability to generate value from intellectual property derived from universities and research institutes and to secure independent, long term funding for the business. Following Admission, Sigma's shareholding in Frontier IP will reduce from 77.4% to 46.7%. With Sigma's shareholding falling below 50% of Frontier IP's enlarged share capital, Frontier IP is able to comply with Venture Capital Trust and Enterprise Investment Scheme rules. In addition, Sigma notes that following Admission, IP Group plc, the developer of intellectual property based businesses, will hold 7% of Frontier IP's enlarged share capital and that Frontier IP management has participated in the Placing.

As a result of the reduction of Sigma's shareholding in Frontier IP, there will be a change in the accounting treatment of Frontier IP in Sigma's accounts from subsidiary to associate company. As an associate company, Frontier IP will be accounted for as an investment, at fair value, in Sigma's balance sheet. Previously, as a subsidiary, its assets and liabilities were fully consolidated into Sigma's accounts.

As part of the Placing process, two Board directors of Frontier IP (Executive Chairman, Neil Crabb, and Partnership Director, Jackie McKay) and IP Group plc purchased Frontier IP shares from Sigma. Neil Crabb and Jackie McKay purchased respectively 231,375 and 12,855 shares and IP Group plc purchased 350,558 shares in Frontier IP from Sigma. Sigma has used the consideration from these sales to buy back in aggregate 3,370,857 shares held in Sigma by Neil Crabb, Jackie McKay and IP Group plc, being 1,500,000, 66,182 and 1,804,675 Sigma shares respectively at 9.7 pence per share. For IP Group plc and Jackie McKay, the 1,804,675 and 66,182 Sigma shares represented their entire shareholdings in Sigma and accounted for 3.9% and 0.1% respectively of Sigma's total issued share capital. For Neil Crabb, the 1,500,000 Sigma shares accounted for 3.2% of Sigma's total issued share capital. The total of 3,370,857 Sigma shares purchased by Sigma from IP Group plc, Neil Crabb and Jackie McKay are to be cancelled. This will result in a reduction in Sigma's issued share capital of 7.2%, leaving a balance of 43,401,578 ordinary shares with voting rights, thereby increasing the remaining percentage holdings of all Sigma shareholders by 7.8%. These transactions result in a net cash reduction of £30,000 for Sigma.

Neil Crabb will retain 5,789,687 Sigma shares, equivalent to 13.3% of Sigma's share capital, post the transactions.

The figure of 43,401,578 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in the share capital of the Company under the FSA's Disclosure and Transparency Rules.

Graham Barnet, CEO of Sigma, commented,

"It has been our stated strategy to provide Frontier IP with an independent financial platform and the Admission to AIM and Placing represent pleasing delivery of this goal. Frontier IP is well placed to benefit from the growth opportunities in the IP commercialisation industry, building value and its autonomy from Sigma, and we look forward to further progress in the future."

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