Confirmation of Capital Reduction

Castleton Technology PLC

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

Confirmation of Capital Reduction

Castleton Technology PLC, the software and managed services provider to the public and not-for-profit sectors, announces that further to its regulatory news releases on 7 September 2018 and 24 September 2018, the High Court of Justice in England and Wales has made an order confirming the cancellation of the amount standing to the credit of the Company's share premium account (the "Capital Reduction") under section 648 of the Companies Act 2006.

The Capital Reduction, as described in the Circular that was sent to shareholders on 7 September 2018 and which is available at the Company's website (http://www.castletonplc.com), was approved by shareholders at a General Meeting held on 24 September 2018. The order of the Court has been registered with the Registrar of Companies and, accordingly, the Capital Reduction has now become effective.

The purpose of the Capital Reduction is to create distributable reserves, which will allow the Company to make dividend payments at an appropriate time in the future.

Capitalised terms used herein but not defined have the same meanings as set out in the Circular.

About Castleton Technology plc

Castleton Technology plc is a leading supplier of complementary software and managed services to the public and not-for-profit sectors. The Group is a 'one stop shop', providing integrated housing systems via the Cloud, working in partnership with its customers and resellers to help drive efficiencies whilst improving controls and customer service. www.castletonplc.com

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.