SMRT.L Regulatory News (SMRT)

14 May 2013

Coms plc

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

Issue of Equity

Coms (AIM: COMS) is pleased to announce that it has raised £1.5m, before expenses, through the issue of 81,081,081 new ordinary shares of 0.1 pence each ("Ordinary Shares") at a price of 1.85 pence per share to Novum Securities Limited. Under the terms of the deal, each new Ordinary Share has a Warrant attached, entitling its holder to subscribe for additional Ordinary Shares at an agreed exercise price of 3.7 pence per share. The Warrants, which will be granted subject to shareholder consent, can be exercised at any time up to 24-months from the date of signature or, at the Company's election, if the share price achieves and remains at 130% of the Warrant exercise price (i.e. 4.8p) for a period of 10 business days, whichever is the sooner. A notice will be sent to Shareholders convening a general meeting to grant the Coms directors authorities to issue these Warrants.

The new management team has set internal sales targets that require the Company to deliver significant and transformational growth. It is expected that this will be achieved through a combination of organic growth and suitable acquisitions. The Company believes that this issue of equity heralds a strong endorsement of the new management's ambitious plans and materially strengthens the Company's balance sheet. The exercise of the warrants would provide up to £3.0m additional cash, before expenses, providing an even more solid platform for the Company to pursue new business lines and execute strategic transactions, a number of which are currently under consideration.

Coms CEO, Dave Breith, stated: "We consider this fundraising to be a significant vote of confidence and it allows us to immediately invest in additional resources to progress our plans to rapidly grow this business. We look forward to working for the benefit of our wider shareholder base."

Application will be made for the admission of the new Ordinary Shares to trading on AIM with admission expected to take place on 21 May 2013.

The Company's enlarged issued ordinary share capital immediately following the issue of these shares will be 466,196,128 Ordinary Shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in interest in, the share capital of the Company under the Disclosure and Transparency Rules.

Contacts:

Coms plc

David Breith (CEO) +44 (0) 207 148 3000

Grant Thornton UK LLP (Nominated Adviser)

Colin Aaronson / Jen Clarke +44 (0) 207 383 5100

Simple Investments (Broker)

Andy Thacker / Nick Emerson +44 (0) 1483 413 500

Newgate Threadneedle (PR)

Graham Herring +44 (0) 207 653 9858

Notes to Editors

Coms plc is listed on the London Stock Exchange (AIM market) and is a leading player in the provision of Hosted VoIP Telephony to UK businesses with over 10-years' experience in the telecoms sector. Unlike most VoIP providers, Coms does not rely on third party providers and we own and operate a UK based Carrier Class Telephony Platform.