Dealings Commence

Braveheart Investment Group plc
30 March 2007


                        Braveheart Investment Group plc
                        ('Braveheart' or the 'Company')

                      COMPLETION OF £6.64 MILLION PLACING

                   ADMISSION TO AIM AND FIRST DAY OF DEALINGS

Braveheart, a venture capital and investment management business which has a
proven track record of delivering attractive returns through investments in
companies which commercialise intellectual property, announces today that it has
raised approximately £6.64 million by way of a placing and that its shares will
commence trading on AIM today, under the symbol BRH.

Braveheart has placed 3,991,020 new Ordinary Shares at a price of 160 pence per
share and will have a market capitalisation, at the Placing price of £21.45
million. Panmure Gordon & Co Limited is nominated advisor and broker to the
Company.

Key Points

• The Group's structure provides it with a mix of regular revenue streams
  from investment management fees and exceptional income through the realisation
  of investments upon exit.

• Investments are made in young, emerging, unlisted companies where there
  is potential for significant growth.

• Investments are typically focused on British companies with potential
  global technology solutions.

• Investment opportunities mainly arise from Braveheart's extensive
  network of contacts, which includes close relationships with universities and
  innovation centres.

• An equal investment made in every portfolio company since the Group's
  formation would have generated an average compound return of 37 per cent. per
  annum on realised investments.

• Of the 16 portfolio investments realised so far, five have been by way
  of IPO, and three have been by way of trade sale or secondary purchase. Eight
  have been written off.

• In November 2005, Uberior Investments plc (a subsidiary of the Bank of
  Scotland) subscribed for 10 per cent. of the enlarged share capital of the
  Company, providing the resources for the Group to commence making significant
  investments alongside its clients.

• The net proceeds of the Placing will be used to:
  -  increase direct investment;
  -  invest in captive university funds which the Group will manage; and
  -  acquire assets where the Group believes it can add value.

• The Group has been profitable for its last three financial years. This
  has been achieved without any significant contribution from directly owned
  investments, which have only recently become material.

Background

The Company grew out of a business which was originally formed in 1997 by four
Scottish businessmen as a co-investment vehicle which would allow them to pool
their money and knowledge, increase diversification and also reduce risk. It
makes investments in young, emerging, unlisted companies where there is
potential for significant growth.

Use of proceeds

Braveheart will use the funds raised to increase its capacity for direct
investment and to allow it to invest in and manage captive university funds,
such as the £12 million Strathclyde Innovation Fund, which the Company recently
announced it had agreed to set up with the University of Strathclyde. As the
fund's manager, Braveheart has the exclusive right of first refusal on all
commercial investment opportunities emanating from the University. The Company
may also seek to acquire underperforming assets, where it believes it can add
value.

Investments

Typically, Braveheart's investments are focused on British companies with
potential global technology solutions. However, the Group also maintains limited
exposure to more traditional businesses. Braveheart's portfolio ranges from
start-up businesses to companies which are close to an IPO or sale. Each year,
out of several hundred business plans received, around ten investments are made,
all of which demonstrate attractive exit potential. These opportunities emanate
from Braveheart's network of contacts, which includes close relationships with
universities, innovation centres, and the Group's own clients. (A list of some
of the Group's investments can be found in the notes to editors).

Investments are often made alongside or in joint venture with large financial
institutions, such as the Bank of Scotland and non-governmental organisations.

Financial results

The Group's business is structured so that its revenues are diversified between
regular income, from investment management fees, and exceptional income, through
the realisation of investments upon exit. It has been profitable for the last
two financial years, without any significant contribution from its directly
owned investments. In the financial year ended 31 March 2006, Braveheart
generated pre-tax profit of £151,657 (2005: £25,268) on a turnover of £528,474
(2005: £334,774).

Clients

The Group currently has approximately 100 discretionary and active high net
worth clients who, as well as investing funds, frequently provide:

• secondary pre-investment due diligence
• management skills and business development expertise
• a pool of executive and non-executive directors; and
• further investment opportunities.

Direct investment

In November 2005, Uberior Investments plc (a subsidiary of the Bank of Scotland)
subscribed for 10 per cent. of the enlarged capital of the Company. This
provided the resources for Braveheart to commence making significant investments
alongside its clients. As at 26 March 2007, Braveheart has made its first three
realisations, for its own balance sheet, which have generated a compound return
of 110 per cent. per annum.

Commenting, Geoffrey Thomson, Braveheart's chief executive, said:
'We are delighted to have completed our admission to AIM. Our flotation
signifies the start of the next stage of development for Braveheart and we have
exciting plans for the growth of our business; we plan to do more work with our
university partners, increase direct investment from our balance sheet and
expand via acquisition where we can see opportunities in which we can add value.

'We are delighted that the public will now be able to participate in what we are
doing by holding shares in our company, and we are looking forward to developing
and strengthening our business.'

Geoffrey Thomson                 Richard Gray            Richard Sunderland
Chief Executive                  Katherine Roe           Rachel Drysdale
                                                         Simon Hudson
Braveheart Investment Group      Panmure Gordon & Co     Tavistock
plc                                                      Communications
Tel: [phone]               Tel: [phone]      Tel: [phone]

NOTES TO EDITORS:

BOARD OF DIRECTORS

Garry Watson OBE CA, Chairman - aged 66.
Garry was formerly a Managing Director of Hill Samuel Bank (Head of Investment
Finance), Legal Services Ombudsman for Scotland and a Governor and Deputy
Chairman of the Macaulay Land Use Research Institute in Aberdeen. He is
currently a Director and Chairman of the Audit Committee of Places for People
Group, a major UK provider of mixed tenure housing.

Geoffrey Thomson, Chief Executive Officer - aged 48.
One of the founders of Braveheart, Geoffrey has a track record as a deal maker
and business angel. He has run his own venture capital backed group of companies
and spent five years working as a company doctor specialising in restructuring
and refinancing of small to medium sized enterprises. Geoffrey writes columns on
investment for various national broadsheets and regularly speaks at business
events in Scotland.

Carolyn Smith ACIS, Investment Director - aged 42
Carolyn has an honours degree in accountancy from the University of Stirling and
is a Chartered Secretary. She spent five years working in insolvency before
moving to business development and investment. After five years working in
private equity she joined Braveheart in 2000.

Edward Cunningham CBE, Non-executive Director - aged 75.
Edward has UK and international industry experience, including a period with the
World Bank. Latterly, he was Director, Industry and Enterprise Development with
the Scottish Development Agency. More recently, he has been chairman of a number
of 3i-invested companies. He has also been a Director of TSB Bank Scotland and
Watson & Philip. He is currently chairman of two companies and has his own
consultancy business.

Donald Turner CA, Non-executive Director - aged 62.
Donald was Managing Partner-Regions and Managing Partner for Scotland and
Northern Ireland for Ernst& Young LLP and retired from that firm as Regional 
Chairman Scotland in 2001. He is a past Chairman and Board Member of the 
Scottish Council for Development and Industry and was a Non-Executive Director 
of Young Enterprise Scotland. He is a former Council Member of the Institute of 
Directors and a past Chairman Scotland of The Princess Royal Trust for Carers. 
He is currently Convenor of the Audit and Risk Management Committee of The 
National Trust for Scotland.

Shonaig Macpherson CBE FRSE, Non-executive Director - aged 48.
Shonaig joined the board of Braveheart in October 2005. She has recently retired
as senior partner of McGrigors, one of Scotland's leading legal firms. Shonaig
is currently Chairman of the Scottish Council for Development and Industry,
Chairman of ITI Scotland Ltd, a Non-executive Director of the Scottish
Executive's management board, a Fellow of the Royal Society of Edinburgh and
Chairman of The National Trust for Scotland.


Investment Schemes

SMART Equity Scheme

The SES is a joint venture between Braveheart, the Bank of Scotland and a number
of Scottish universities. The SES was established to assist companies that have
been formed to exploit IP created within the universities by providing them with
the necessary funds and management support to commence commercial operations.

SES addresses the difficult issues of how to provide, in a cost effective way,
management support and a small seed round of equity to companies emerging from
the university. SES leverages the SMART award from the Scottish Executive, which
pays for up to 75 per cent. of the cost of carrying out a technical and
commercial feasibility study lasting between 6 and 18 months, up to a maximum of
£50,000. It is a condition of the SES that, to be eligible for funding, a
company must have secured a SMART award. The Group has also negotiated reduced
deal fees for professional advisers, so that minority protections and corporate
governance regimes can be instilled from the outset without significantly
reducing the funds available to the spin-out companies.

In addition to funding, the Group provides experienced investors/managers to act
as non-executive directors on the boards of the investee companies. These
investors/managers assist with corporate development and assist the companies to
prepare for more substantial funding.

To be considered for funding under SES, a company must, in addition to having
been awarded a SMART
award, be affiliated to one of the following universities or innovation centres:

• University of Dundee;
• University of Edinburgh;
• Heriot-Watt University;
• Robert Gordon University;
• University of St Andrews;
• University of Strathclyde;
• Hillington Innovation Centre; or
• The Alba Centre.

Braveheart's first ten investments made under SES were delivered by way of the
SMART Fund. Subsequent investments made under SES will be delivered by the Alpha
EIS fund, which is discussed below.

Proof of Concept Scheme

The Scottish Enterprise Proof of Concept grant programme is an initiative
awarding grants to assist the precommercialisation of emerging technologies from
Scotland's universities, research institutes and NHS boards. Its goal is to help
researchers take their ideas and inventions out of the laboratory and develop
them commercially into smart, innovative businesses, helping to plug the gap
between academic research and full commercialisation.

In June 2005, Braveheart announced a new initiative to complement the Proof of
Concept grant programme administered by Scottish Enterprise. The initiative
comes under the title of PoC. PoC makes provision for the Group to assist the
universities with decisions on what IP to commercialise and how best to achieve
it. It also makes provision for the Group to provide funding once the Proof of
Concept grant is complete. Under framework agreements entered into with the
universities of Edinburgh and Glasgow, the Group stated its intent to invest £5
million over a period of up to five years at each of the universities. In March
2006, PoC was extended to include the University of Strathclyde. In October
2006, the Group wrote to the University of Glasgow terminating its agreement
with that university.

PoC supports the creation of technology companies, building on the achievements
of the SES. Funding has been welcomed by both Scottish Enterprise and the
Scottish Executive.

Alpha EIS Fund ('Alpha')
Alpha is a £2.5 million fund, established by the Group in January 2006 as the
delivery vehicle for SES and PoC. Prior to this date, SES was delivered by way 
of the SMART Fund. Alpha is expected to make investments in 10 to 15 licensing 
or spin-out opportunities that arise out of the relationships that the Group
has with the six universities and two innovation centres mentioned in this
announcement. Investors in the fund are the Group, clients of the Group, Uberior
Investments plc (a subsidiary of the Bank of Scotland), the National Endowment
for Science, Technology and the Arts (often referred to as NESTA) and Scottish
Enterprise (through SCF).

As at 26 March 2007, Alpha has made three investments. The Group is currently in
discussions with universities regarding a number of further investments.

Strathclyde Innovation Fund ('SIF')
The Group has agreed detailed terms with the University of Strathclyde whereby
it is proposed that it will establish, manage and invest in a fund dedicated to
commercialising intellectual property emanating from the University of
Strathclyde.

Investment will be way of equity positions in spin-out companies and royalty
sharing where intellectual property is licensed to an industrial partner.
Investors in SIF are expected to include the University of Strathclyde and its
alumni, the Bank of Scotland, the Group, and other institutional investors. A
first closing of the fund is scheduled for September 2007. The fund will have an
anticipated maximum value of £12 million and will operate for an eight-year
period, extendable to ten years with the agreement of all parties.

Under the terms of the partnership agreement, the Group (being the fund manager)
will pay 25 per cent. of its performance bonus to the University of Strathclyde.
In addition, SIF will make a payment direct to the University of Strathclyde for
use by the department which sponsors a successful investment application.


Scottish Enterprise

1. Scottish Co-investment Fund ('SCF')
   The SCF is a £45 million investment fund managed by Scottish Enterprise. The
   remit of the fund is to invest equity of between £50,000 and £500,000 in 
   company finance deals of up to £2 million. Investment is delivered by 
   matching the funds provided by partners such as the Group. An important part 
   of the SCF concept is that the partner (rather than the public sector) makes 
   the investment decision. Under its agreement with Scottish Enterprise, the 
   Group provides a portfolio monitoring service to Scottish Enterprise.

   The Group was one of the first partners announced under the scheme which 
   started operating in April 2003. In 2006, the Group received a further 
   allocation in respect of its Alpha EIS Fund.

2. Scottish Venture Fund ('SVF')
   The SVF was launched in October 2006, and initially comprised a £20 million 
   fund for growth companies. The fund is delivered via partnering arrangements 
   with the private sector and makes provision for participating in investments 
   of between £2 million and £5 million. In January 2007, the Group was 
   announced as one of the first fund partners.


PORTFOLIO

The portfolio of investments currently managed by Braveheart includes the
following companies. Companies in which the Company has a direct investment are
annotated thus *.

Alivox Limited*
Alivox is a technology company which owns the IP for 'ALiS' (automatic spoken
language identification). This methodology identifies a language from a clip of
speech by using speech and signal processing techniques. Potential applications
for the technology include multilingual call centres, emergency centres,
security and international conferences.

Biopta Limited*
Biopta is a spin-out company from Glasgow Caledonian University, which provides
specialist contract research services with expertise in human tissue in vitro
pharmacology. The company is also developing instruments to analyse and assess
drug tissue-interactions.

The Capital Pub Company plc* and The Capital Pub Company 2 plc*
The Capital Pub Company ('CPC') was formed in 2000, with the vision of building
an estate of traditional(rather than themed) pubs. At the date of this document,
CPC manages 20 pubs, of which 17 are freehold. Having raised the maximum sum
available under EIS, the founders launched a second EIS qualifying company, The
Capital Pub Company 2 ('CPC2'), in January 2004. As at 26 March 2007, CPC2 owned
ten freehold pubs.

Cascade Technologies Limited*
Cascade Technologies uses quantum cascade laser technology to provide products
that create instant DNA type fingerprints of gases, enabling their presence and
quantity to be detected. The technology platform utilises lasers and detectors
to sense changing light intensity as the laser light passes through gases.
Applications of the technology include security, military, oil and gas,
automotive, aerospace, medical diagnostics, laboratory instrumentation, and
environmental monitoring. Cascade Technologies is a spin-out from the University
of Strathclyde.

The Clapham House Group plc
Formed by two previous executive directors of Pizza Express, The Clapham House
Group is now quoted on AIM. It buys and expands restaurant chains located within
the M25 area. Brands include the Gourmet Burger Kitchen, The Real Greek and The
Bombay Bicycle Club. David Page, Chairman, won 'Entrepreneur of the Year' at the
2007 Quoted Company Awards.

Design LED Products Limited*
Design LED Products has developed 'leaky' light guide technology which provides
an inexpensive method of producing illuminated signs and displays incorporating
colour, movement and animation. Design LED Products was the Group's sixth
company funded by SES, and the second from Hillington Innovation Centre.

Dimensional Imaging Limited*
Dimensional Imaging is a double spin-out from the universities of Edinburgh and
Glasgow and was the first company to be supported by SES. The company provides a
range of 3D surface image capture systems which capture high-resolution 3D
surface images of specific parts of the body. Applications include medical and
dental applications such as maxillofacial surgery, plastic surgery and
orthotics.

Eastern Choice Ingredients Limited
Eastern Choice Ingredients is based in Wales and provides speciality ingredients
such as soy, black bean and oyster sauces to the food industry. The company is
fully certified to British Retail Consortium Higher Level approval.

Edinburgh Robotics Limited*
Edinburgh Robotics is a spin-out from the University of Edinburgh's School of
Informatics. It is designing a comprehensive software development platform for
mobile robotics.

Eleksen Group plc*
In 2006, Eleksen Group reversed into Bora Communications plc, an AIM quoted
company. It has developed touch sensitive interactive textiles for electronics
interface design. The company's core technology, ElekTex(R), is an
electro-conductive fabric touch pad optimised for the creation of flexible,
durable and rugged fabric touch screen interfaces. ElekTex(R) is used in
applications ranging from wearable electronic controls for consumer electronics
('CE') to lightweight, low-power touch interfaces for CE accessories.

Infinite Data Storage Group plc*
Infinite Data Storage Group is based in Dunfermline and is an engineering
company that designs portable data storage devices to allow people to access,
manage, share and preserve their music, photographs, video and data.

Inxstor Limited*
Inxstor was formed to exploit intellectual property in the area of 'place
shifting'. Place shifting can be seen as a location-based extension to
time-shifting of digital video content. A demonstration of the concept was
launched at the CES trade show in Las Vegas in January 2007.

MicroEmissive Displays Group plc*
MicroEmissive Displays Group is a developer of polymer organic light emitting
diode based microdisplays. These displays are believed to be more energy
efficient than the displays currently in the market. MicroEmissive Displays
Group is quoted on AIM.

MicroStencil Limited*
MicroStencil was incorporated in 2003 and is a spin-out from Heriot-Watt
University. It has developed a patented fabrication process which allows the
manufacture of superior electroformed products. The core business is to provide
cost-effective, high performance screen printing stencils.

Mixipix Limited*
Mixipix is in the business of delivering animated content to mobile phones. It
is a new breed of media company for the mobile industry, encompassing the roles
of software developer, distribution partner and content provider.

NiTech Solutions Limited*
NiTech Solutions design continuous production solutions for the process and
chemical industries offering environmentally friendly, lower cost and higher
performance solutions to traditional batch processing. A biofuel research
programme is ongoing.

Optos plc*
Optos is a medical devices company that enables retinal examinations to be made
more cheaply, effectively and safely. Optos was the most recent company in the
Group's portfolio to be listed on the London Stock Exchange. The IPO took place
in February 2006.

PSI Electronics Limited*
PSI Electronics aims to deliver an intelligent fault locator system that detects
breaks and transient faults in buried and inaccessible electric and fibre-optic
cables and cable networks. The company is a spin-out from the University of
Strathclyde.

Pufferfish Limited*
Pufferfish is a spin-out from the University of Edinburgh and was the last
company to be financed via the SMART Fund. Pufferfish is developing products
based on inflatable spherical display systems onto which images may be
projected.

Quantum Filament Technologies Limited*
Quantum Filament Technologies is a spin-out from the universities of Dundee and
Surrey and is developing flat screen display technology based on field emission
displays. It is anticipated that this will challenge existing liquid crystal
displays, plasma display panels and cathode ray tube technologies.

Spiral Gateway Limited*
Spiral Gateway is a fabless semiconductor chip vendor formed in 2004 as a
spin-out from the University of Edinburgh. The company holds exclusive rights to
a novel processor architecture, which offers the potential for a low power
solution for the development of digital circuits in a variety of applications.

Tayside Flow Technologies Limited*
Tayside Flow Technologies is a medical devices company focused on the research,
development and commercialisation of cardiovascular devices derived from a
discovery and understanding of the haemodynamic properties of blood. The company
was a spin-out from Tayside University Hospitals Trust.

Virtual Well Engineer Limited*
Virtual Well Engineer is developing software for use by oil and gas well
engineers to plan, design and optimise well output.

Wolfson Microelectronics plc
Wolfson Microelectronics provides engineering solutions in the digital audio
sector of the consumer electronics market. A spin-out from University of
Edinburgh, the Group's clients first invested in Wolfson Microelectronics in
1999. In October 2003, the company completed an IPO on the LSE with an initial
market capitalisation of approximately £260 million.




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