Posted on 05.02.2010
SUSPENSION OF TRADING ON AIM

As previously notified on 14 January 2010, the Company is in constructive discussions with its finance providers as part of a review of its options to establish a more appropriate long-term capital structure for the business.

As part of these discussions, a private equity firm is considering making a significant equity investment in the business. Any investment would be on the basis that the current providers of debt finance to the Company agree to write off a material portion of the Company's outstanding debt in return for a minority investment in the on-going business. The investment would involve the acquisition of the business and assets of Payzone plc by a newly established company funded by a private equity firm and the Company's current providers of finance. While discussions are still ongoing, it is likely that any new capital structure for the business will result in no value for existing shareholders.

The Board is pleased to note the continued support of the Company's finance providers and the interest shown by private equity in making an investment in the business. It remains confident that an appropriate long-term capital structure for the business will be found. The Company will make a further announcement in due course, pending which trading in the ordinary shares of the Company has been suspended with immediate effect.

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