Milestone Group PLC : Issue of Equity

MILESTONE GROUP PLC

"Milestone" or the "Company"

OnSide goes live & Issue of Equity

Milestone Group PLC (AIM: MSG), the AIM quoted provider of digital media and technology solutions, is pleased to announce that OnSide, the mobilised risk management solution, has now been released live to Charlton Athletic Community Trust. As a result of this development, the Company also announces that it is issuing 3,896,104 new Ordinary Shares at a price of 0.77 pence per share in the Company to BGP Global Services Ltd.

The OnSide product is a mobilised risk management solution specifically developed for community sport coaching initiatives. It uses real-time information, shares it with various stakeholders and has been developed to help build safer local communities. On 29 September 2011, Milestone announced that Charlton Athletic Community Trust ("CACT") was commencing a pilot of the project. CACT runs football coaching sessions in the community and has been using the software to monitor and evaluate attendance, and demonstrate good governance and procedures within the organisation.
  
Following the pilot, OnSide has undergone twelve months of development including the integration with various existing industry products. OnSide has now been released to the market, is being used by CACT on an ongoing basis and has created revenue for the first time.

As announced on 8April 2011, Milestone purchased the software behind OnSide from BGP Global Services Ltd ("BGP"). In consideration for the software, Milestone agreed to issue the new ordinary shares in the Company in three tranches. The agreement stated that the second tranche became due once OnSide goes live. As a result of this development, the Company announces that it is issuing 3,896,104 new ordinary shares in the Company to BGP, subject to admission,. Following admission, BGP will hold 19,487,013 shares in the Company, which equates to 4.91 per cent. of the enlarged share capital of the Company.

The new ordinary shares will rank pari passu with the existing ordinary shares of Milestone.

Application has been made for the 3,896,104 ordinary shares to be admitted to trading on AIM, which is expected to occur on or around 28 January 2013.

Following the issue, Milestone will have in issue 396,974,929 ordinary shares with voting rights.

 

For further information:

Milestone Group PLC Deborah White, Chief Executive	Tel: [phone]
Cairn Financial Advisers LLP, Nominated Adviser Liam Murray / Avi Robinson	Tel: [phone]
Hybridan LLP, Broker Claire Louise Noyce / Deepak Reddy	Tel: [phone]

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Source: Milestone Group PLC via Thomson Reuters ONE

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