Placing and New Contract

3 August 2010

Ila Group Limited

("Ila" or the "Company")

Placing and First French Contract

Ila (AIM: ILA), is pleased to announce that it has successfully placed 27,029,141 new ordinary shares of no par value (the "New Shares") at 1p each with a mixture of institutional and other investors to raise approximately £270,914 (before expenses) for the Company.

Ila is also pleased to announce that their exclusive French distributor has placed an initial order of 5,100 units for its Dusk product, to be sold in a leading French supermarket.

Simon McGivern CEO of ILA commented, "This is an important step for Ila to confirm that it has the continued support of its current and new shareholders in funding the company's rapidly growing customer base and product range. This is further demonstrated by the announcement of our first order by our exclusive French distributor."

Application has been made for the New Shares to be admitted to trading on AIM and it is expected that admission will become effective on 5 August 2010.

Following admissions of the New Shares, the total number of issued ordinary shares in the Company will be 567,611,968. The Company does not hold any ordinary shares in treasury. Therefore this figure 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 in, or a change to their interest in, the share capital of the Company under the Financial Service Authority's Disclosure and Transparency Rules.

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