Vela Technologies Regulatory News (VELA)

Asia Digital Holdings plc

("Asia Digital", "ADH" or "the Group")

Update on disposals of DGM Internet Marketing Private Limited ("DGM India") and selected assets of DGM Asia Pacific Pte Ltd ("DGM Singapore Assets")

Asia Digital Holdings plc (AIM:ADH), an independent online marketing group, announces that the disposal of DGM India, which was due for completion on 10 June 2012, is now expected to complete at the end of June. Completion is later than expected due to delays in the transfer of technology IP from ADH to DGM India. The final gross consideration, due seven days after completion, will be Rupees 7,875,000 (approximately GBP 90,928). ADH has to date received a total gross consideration of Rupees 25,625,000 (approximately GBP 293,888) in respect of this disposal.

ADH further announces that the disposal of certain DGM Singapore Assets to Flow Digital Pte Limited, a subsidiary of Omnicom Group, approved at the general meeting on 28 May 2012, is now expected to complete on or before 22 June. At completion, the payment of the gross consideration monies (US$250,000 - approximately GBP 160,932) was to be made. In the light of a retention of US$50,000 (approximately GBP 32,186) relating to the cost of maintaining the DGM Singapore team, which has been agreed with the buyer, a revised consideration of US$200,000 (approximately GBP 128,746) will now be made.  

ADH also announces that it is in discussion with certain parties that may result in an investment being made into the Company.

As a result of the fundamental change of business resulting from the disposals of DGM India and the DGM Singapore Assets and the closure of ADH (Shanghai) Information Consulting Co Limited, and to maximise the Company's cashflow, the Board has effected substantial cost cuts and members of the Board have agreed to forego any remuneration.

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