TAU.L Regulatory News (TAU)

TAU CAPITAL PLC

("Tau" or "the Company")

TRADING UPDATE

INVESTMENT PERSONNEL CHANGES

Deal completion

Tau today announces that it has completed a private investment through the acquisition of an interest in Stopharm LLP, a Pharmaceutical Distribution company registered under the laws of the Republic of Kazakhstan whose main activities are the wholesale pharmaceutical distribution and provision of related logistics services.

Brief transaction terms:

Tau has acquired a direct equity participation in Stopharm LLP of 24% and an option for a further 16.35%, the exercise of which is subject to approval by the Anti-monopoly Commission of the Republic of Kazakhstan, for a total consideration of USD 21.5M funded from Tau's cash resources.

Investment highlights:

Stopharm LLP, as the largest pharmaceutical distributor by volume in the Republic of Kazakhstan and sole provider of backbone pharmaceutical logistics services, is poised to greatly benefit from the anticipated growth of the healthcare sector and associated pharmaceutical expenditure.

Such growth shall be mainly driven by the GDP growth of the country and the convergence in healthcare standards to the European average as GDP distribution improves.

Stopharm LLP audited accounts for 2009 (year ended 31st Dec) indicate Net Income excluding losses from currency devaluation*of USD 3.12 M**

* 2009 Net Income including losses from currency devaluation of 0.44M$**

** 2009 average exchange rate of the Kazakh Tenge (KZT)applied:134.58 KZT/$

Note:2009 exchange rates for KZT were:

1st January 2009: 120.79KZT/$

 31st December 2009: 148.36 $/KZT

 Source: The National Bank of Kazakhstan

Prospective deal

Tau has also entered into the advanced stages of due diligence and valuation of an investment opportunity of an oil and gas exploration business.

Personnel changes

The Company has been informed by the Manager of certain personnel changes. After three years with Compass Asset Management, Atul Patel has left Kazakhstan in order to return to the UK. The public equity portfolio will now be run by Terrence Currier, formerly with Moore Capital and Sovereign Asset Management.

Additionally Darius Daubarus has handed over his responsibilities to David Herbada, formerly with Andersen Consulting, Durlacher-Panmure, and Dubai International Capital, who has relocated to Kazakhstan and assumed responsibility for the private equity portfolio of Tau.

Chairman's comment

Philip Lambert, Chairman of Tau, stated: the Stopharm deal looks promising and is a further step in implementing the Company's strategy with the support of the newly appointed portfolio managers.

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