Plasmon May Be Sold to (Unknown) U.S. Equity Firm

On 8 August 2008 Plasmon issued its first interim management statement for the year ending 31 March 2009 and an update on trading.  In this announcement, Plasmon stated that the overall strategy outlined in February 2008 is being executed, with several key elements on track or ahead of plan. However, the sales performance in the first quarter was disappointing, and approximately 20% below the Board’s expectations. Consequently, the Board reduced its overall sales expectations for the year and initiated a further programme of cost reduction and financial restructuring. The Board also announced that in light of this the Company required additional financing and had engaged in a process to secure this within an appropriate timescale.

Since 8 August, the Board has continued its marketing exercise, primarily with US investors, with a view to securing additional debt or equity capital.  The Company has not received commitments from potential investors that the Directors consider immediately necessary to fund the business and its ongoing working capital requirements. However, the Company confirms it has now received an approach from a US-based technology private equity firm at an investment value of some $25 million and at a net price payable to shareholders of not more than 0.25 pence in cash per share at today’s US dollar exchange rate, and confirms that it is currently in preliminary discussions which may or may not lead to an offer for the entire issued and to be issued share capital of the Company.  The investment value includes a significant injection of new funds to enable a major restructuring to be completed. Given the absence of other financing options, and given the Company’s financial position, the Board has concluded that such a sale is the best viable option for the Company.

There can be no certainty that any offer will be made nor as to the terms of any such offer. Pursuant to Note 7 to Rule 2.4 the Company notes that this announcement is made without the agreement or approval of the potential offer.

A further announcement will be made when appropriate.

Relevant Securities in Issue
In accordance with Rule 2.10 of the City Code on Takeovers and Mergers, Plasmon confirms that as of close of business on 4 September 2008 Plasmon has 220,756,276 ordinary shares of 5p each in issue and admitted to trading on the London Stock Exchange under the UK ISIN code GB0006906381.