Stm Grp. Regulatory News (STM)

9 March 2012

STM Group Plc

("STM" or the "Group")

Issue of Equity

STM, the cross border financial services provider, today announces that it has raised £1,586,000 through the issue and allotment (the "Issue") of 8,960,000 new ordinary shares of 0.1p each in the capital of the Company ("Ordinary Shares") to International Financial Options Limited at a price of 17.5p per Ordinary Share. The Issue is being made out of the authority granted to directors to allot Ordinary Shares at the Company's annual general meeting on 6 May 2011 and remains subject to regulatory approval.

The proceeds of the Issue will be used to advance the Company's current work program and free-up regulatory capital for business purposes.

Application will be made for 8,960,000 Ordinary Shares (the "Issue Shares") to be admitted to trading on the AIM Market of the London Stock Exchange ("Admission"). It is expected that Admission will occur and that dealings will commence in the Issue Shares by Friday 23 March 2012 subject to receipt of the necessary regulatory approvals referred to above. The Issue Shares will rank pari passu with the existing Ordinary Shares currently traded on AIM. Following Admission, there will be 51,986,602 Ordinary Shares in issue.

Commenting on the Issue, Colin Porter, STM's Chief Executive Officer said:

"The key to STM substantially growing its revenue streams is the ability to develop and build upon its distribution network. This share issue will allow management to allocate more financial resources to developing our distribution channels as well as alleviating any short term pressures on working capital arising as a result of the Eurozone economy."

Following the Issue, Mr. N. Green, the owner of International Financial Options Limited will be interested in 12,387,122 Ordinary Shares (3,427,122 of which are currently held in the name of SBS Nominees Limited, as announced on 13 February 2012) representing 23.8 per cent. of the Company's issued share capital.

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Notes to editors:

STM is an international financial services group which is listed on the AIM Market of the London Stock Exchange and made its first acquisition in 2007. The Group specialises in estate and succession planning and wealth structuring for high net worth individuals and their families. STM's clients include entrepreneurs, celebrities, sports stars and affluent retirees.

STM's strategy is to grow organically and by acquisition, in particular looking for businesses and jurisdictions which provide a complementary offering to the Group. Today, STM has operations in Gibraltar, Spain, Jersey, Switzerland and Malta. The Group is also looking to expand through the development of additional products and services that its ever more sophisticated clients demand.

In order to achieve this, STM has, for example, incorporated a Gibraltar Life Insurance Company, STM Life plc, which provides life insurance bonds - wrappers in which a variety of investments, including investment funds, can be held. STM has developed a specialist international pensions division which specialises in QROPS, QNUPS and EFRBS. The growth in Jersey, through the acquisition of Zenith, has coincided with the introduction of the Jersey Foundation legislation which has resulted in a growing number of enquiries and resultant business.

Further information on STM Group can be found at www.stmgroupplc.com