Regenersis - Turning Around Technology

Regenersis plc (“Regenersis” or “the Group” or “the Company”)

Proposed Acquisition and Placing

Regenersis plc (LSE: RGS), a leading provider of after sales product support services to many of the world’s premier technology brands, is pleased to announce that it has agreed to acquire Total Repair Solutions Limited (the “Acquisition”) for a total enterprise value of £6.25 million and that it proposes to raise £3.3 million through an underwritten placing by KBC Peel Hunt.

Highlights

• Total Repair Solutions Limited (“TRS”) is a privately owned outsource service provider with a strong position in the after-sales mobile phone sector and is highly complementary to Regenersis’ own successful service business. TRS has established relationships with several high profile global OEMs and network operators providing them with repair, returns management and end-of-life recycling services for mobile phones and currently processes approximately 100,000 handsets per month.
• In the financial year ended 31 March 2009, TRS generated £22.5 million of revenue (2008: £18.3 million) and EBITDA (before deduction of management fees) of £1.4 million (2008: £1.1 million).
• TRS is being acquired for a total enterprise value of £6.25 million which consists of £3.25 million payable through the issue of Consideration Shares at 40 pence per share to Total Repair Solutions Holdings Limited (the beneficial owner of which is Richard Emanuel) as vendor and sole shareholder in TRS and £3.0 million in cash which will be used to repay the bank facility currently held by TRS such that the business is being acquired on a debt free basis.
• The Consideration Shares will equate to 18.1 per cent of the enlarged issued share capital of the Company and will be subject to transfer restrictions for twelve months following completion of the transaction.
• In order to fund the cash requirement of the transaction, the Company is proposing to raise £3.3 million before expenses by way of an underwritten placing of 8,352,675 new Ordinary Shares by KBC Peel Hunt to institutional and other investors at the Placing Price of 40 pence per share. The Directors will together subscribe for £65,000 of Placing Shares.

Commenting on the acquisition Gary Stokes, Regenersis plc Chief Executive Officer said:

“We have consistently said that to deliver long-term success in our core, value-added service business we would need to increase both our geographic scale and service capability. Our clients are encouraging consolidation and using fewer but larger suppliers to fulfil their after-sales needs. At the moment ours is a fragmented marketplace and the increasing consolidation we are seeing, and in many ways leading, means that both increased operational scale and the synergy opportunities this provides are crucial to accelerating our long-term ambitions.

“This acquisition not only helps us take a step towards achieving our aims, but it does so in a way that is highly complementary to our existing offering and very closely aligned to our own ethos of service excellence and delighted customers. I look forward to working with TRS’s exceptionally committed and talented management team in driving our two businesses forward.”

 For full background to and reasons for the Acquisition, click here

Enquiries:

Regenersis plc +44 (0)1865 471 900
Gary Stokes, Chief Executive Officer

KBC Peel Hunt Ltd
(Nominated Advisor and Broker) +44 (0)20 7418 8900

Jonathan Marren / Oliver Stratton

Financial Dynamics +44 (0)20 7831 3113
Charles Palmer / Matt Dixon / Nicola Biles