Cancellation of Obligation

31 Mar 2006 08:00

Sanctuary Group PLC31 March 2006 31 March 2006 The Sanctuary Group plc ("the Company") Cancellation of Obligation to Issue Shares Pursuant to the terms of a loan note instrument (the "Loan Note") dated 19December 2000 (as amended on 2 February 2004) between Deke Arlon and the Companyin connection with the acquisition of the business of MM&M and April MusicLimited by the Company, the Company had agreed to redeem the Loan Note by way ofissue of such number of ordinary shares (at the average middle market price ofsuch shares for the five days preceding issue) as equals £250,000 upon MrArlon's employment with the Company's group being terminated. Mr Arlon'semployment with the Group ended in October 2005 and it has now been agreed withMr Arlon that, subject to certain payments being made to him by the Company,that no shares will be issued to him pursuant to the Loan Note. ends For further information, please contact:The Sanctuary Group plcPhilip Ranger, Director, Corporate & Investor Relations 07768 534641/ 020 7300 1323MerlinPaul Downes/Rebecca Penney 020 7653 6620 This information is provided by RNS The company news service from the London Stock Exchange