Investment in Geosim

21 Jun 2006 13:47

Brainspark PLC21 June 2006 For immediate release 21 June 2006 BRAINSPARK PLC ("Brainspark" or "the Company") Investment in Geosim Systems Limited ("Geosim") Further to the announcements of 22 November 2005, 26 October 2005 and 11 August2005, Brainspark is today announcing that Geosim has entered into a consultingagreement with CRASH Ventures LLC, a US private equity firm, (the "Firm") (the"Geosim Consulting Agreement"), an Oregon limited liability company, accordingto which Crash LLC will act as a consultant. This agreement differs from theprevious agreement in that the exclusivity period has been extended to 31 May2008. Crash LLC will assist Geosim in raising a total of $2,000,000 of which$585,000 was raised earlier this week. Currently Brainspark holds a 50.1% stakein Geosim; on full subscription of the $2,000,000 the holding by Brainspark inGeosim will be diluted to 44.26%. Geosim designs high-tech 3D city modelling technology. Applications couldinclude urban planning and development, tourism, estate agency, law enforcement,advertising, entertainment and the security and rescue services. Francesco Gardin, Brainspark chairman, commented: "Geosim represents one of themost important assets in our portfolio. We have always believed that geographicinformation will be delivered online in 3D, subject to available bandwidth andPC processing power, which are now finally available to everybody. It is veryencouraging that several investors in the US are recognising the uniqueness ofGeosim technology and international leadership. At a $10,000,000 pre-moneyvaluation, and after conversion of all existing options, Brainspark's % equityposition will be valued at around. $4,400,000 (approx. £2,350,000), while ourGeosim net book value, after four years' amortization, is £ 843,000." ENDS Contact: Francesco Gardin, Brainspark PLC 00 39 0228 0141 Roland Cornish, Beaumont Cornish Limited 020 7628 3396 Background on Brainspark Brainspark is a UK-based early-stage investment company with its main focus oninnovative technologies. Brainspark aims to recognise trends and the underlyingtechnologies and to identify the entrepreneurs capable of achieving success. Brainspark constantly monitors and evaluates investment opportunities intechnolgies with a view to developing them into successful businesses. - This information is provided by RNS The company news service from the London Stock Exchange