Investment Update

EPIC Reconstruction PLC
04 December 2007



                              COMPANY ANNOUNCEMENT
3rd December 2007


                            EPIC Reconstruction plc

EPIC Reconstruction Plc ('EPIC Reconstruction Plc' or 'the Company') is pleased
to announce the refinancing of portfolio company Past Times. EPIC Reconstruction
Plc acquired Past Times in January 2006. Past Times is a UK based historically
themed gift retailer with 67 stores and is the Company's largest investment. The
business is performing well, with strong like-for-like sales growth and is
currently going through a store rollout program. Following improved performance,
the business has been able to attract new banking facilities from Lloyds Bank. A
new working capital facility of up to £5m has been provided to replace existing
stock financing from SCF and EPIC Reconstruction Plc. Whilst the cash committed
to Past Times by EPIC Reconstruction Plc fluctuates with the annual working
capital cycle of the business, the refinancing will reduce the cash committed by
the Company by c.£2m at any given time. The refinancing has not resulted in an
NAV movement, though EPIC Reconstruction Plc's cash balances have increased
commensurately with a decrease in lending exposure, and reflects the positive
progress being made by Past Times. As at 31 December 2007, EPIC Reconstruction
Plc's cash balances are expected to total c.£4m.


-ends-

Enquiries:
Numis Securities                           Charles Farquhar
                                           [phone]

EPIC Private Equity LLP                    Giles Brand
                                           [phone]

IoMA                                       Philip Scales
                                           [phone]

Cardew Group                               Richard Spiegelberg
                                           [phone]



                      This information is provided by RNS
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