Investment

RNS Number : 1168V

AIM Investments PLC

27 October 2010

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

AIM Investments Plc

(the "Company")

Investment in Shenzen Cadro (Catic Group) Hydraulic Equipment Co. Limited

and

Revision to Desmond Holdings Limited Loan Facility

The Company is pleased to announce that it has entered into a US$100,000 convertible loan agreement with Shenzen Cadro (Catic Group) Hydraulic Equipment Co. Limited ("Cadro"), a Chinese hydraulics company, in order to fund the audit expenses of Cadro's proposed listing on the Over The Counter Bulletin Board (the "OTCBB"). The loan is convertible, at the Company's discretion, into Cadro equity at a 50% discount to the issue price for the OTCBB listing.

Cadro is a China-based developer, manufacturer and distributer of mechanical (hydraulic) lifts and covers for trucks. It is currently seeking admission to the OTCBB by means of a reverse takeover. Cadro's unaudited financial statements show that turnover has increased year on year from $9.8million in 2007 to $16.0million in 2008 and $17.7million in 2009; with profits before tax increasing in line with turnover from $0.9million in 2007 to $1.8million in 2008 and $1.9million in 2009. Cadro's unaudited net assets at 31 December 2009 amounted to $7.66million.

On Cadro's admission to the OTCBB, the Company's $100,000 convertible loan will convert to shares with a value of $200,000 (based on the assumed listing price) and will be subject to a 6-month lock in period. The shareholding will represent approximately 1% of Cadro's total issued share capital. The admission is anticipated to take place in November 2010; however, there can be no assurance that the admission will occur in November or at all.

To fund its $100,000 investment in Cadro, the Company has drawn down a like amount under the Loan Facility from Desmond Holdings Limited ("DHL"), details of which were announced on 13 October 2010 ("the Loan Facility announcement"). The parties have since agreed that (i) drawdowns under the DHL Loan Facility are not restricted to making investments in companies referred by DHL and (ii) the issue of the Fee Shares referred to in the Loan Facility announcement is conditional only on the lifting of the suspension of trading in the Company's shares.

The investment in Cadro is in line with the Company's Investing Policy to fund the listing costs of companies, particularly from the emerging Asian and Latin American areas, in return for discounted equity in the companies. Cadro is the first such investment. The Company is currently pursuing a number of other similar investments, details of which it expects to announce shortly.

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