Issue of Equity

19 Jun 2009 13:22

For immediate release: 19 June 2009

EQUITY PRE-IPO INVESTMENTS LIMITED ("Pre-IPO" or "the Company") Issue of Equity

The Directors of Pre-IPO (AIM: EIL), the strategic pre-ipo investment company, announce that application has today been made for 19,018,392 ordinary Shares of 1 pence each in the Company ("New Ordinary Shares") to be admitted to trading on the AIM Market of the London Stock Exchange ("AIM"). Admission of the New Ordinary Shares is expected to take place on 25 June 2009.

Further to the Company's update announcement of 12 February 2009, 15,018,392 of the New Ordinary Shares are being issued to certain of the Company's creditors in final settlement of certain outstanding debts owed by the Company totalling £150,183.92 ("Debt Conversion") and 4,000,000 of the New Ordinary Shares are being issued pursuant to a subscription at 1 pence per Ordinary Share ("Subscription") to raise £40,000 new funds for the Company (together "the Issue").

As part of the Issue, the Company has also secured a new two-year debt facility from one of the subscribers for up to £100,000 to enable the Company to continue operating until further equity finance can be raised. Furthermore, Jonathan Freeman, a non-executive director, has agreed, in recognition of Pre-IPO's current financial difficulties, to waive his directors' fees for the 9 month period ending 30 June 2009.

Following the Issue and the resultant reduction in the Company's liabilities, Pre-IPO's unaudited net asset value per share is expected to be approximately 0.4 pence per Ordinary Share.

Following Admission, the Company's issued ordinary share capital will comprise 32,255,627 Ordinary Shares. All of the Ordinary Shares carry voting rights and this will be the figure which may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the issued share capital of the Company.

The Company expects to announce its audited results for the year ended 31 December 2008 before the end of June 2009.

Paul Schreibke, a director of the Company, commented:

"We are pleased to have concluded the Debt Conversion and Subscription and are grateful for the continued support from those creditors who will now become shareholders. We have secured the immediate future for the Company and are continuing to seek additional funds from interested parties for future investment. We will update the market in due course."

For further information:

Paul Schreibke +44 (0)1481 751 000

Equity Pre-IPO Investments Limited

Oliver Rigby +44 (0)20 7776 6550

Daniel Stewart

GTH Communications +44 (0)20 7153 8035

Toby Hall/Christian Pickel