Loan Agmnt & Issue of Options

Frenkel Topping Group PLC 10 May 2007 Frenkel Topping Group plc ('Frenkel Topping' or the 'Company') Loan Agreement and Issue of Options The Board of Frenkel Topping are pleased to announce that the Company has entered into a loan agreement with MBC Investments Limited ('MBC') pursuant to which MBC has agreed to provide a loan facility of £500,000 to the Company (the 'Loan'). The Loan will only be provided, as set out in the Loan agreement 'to satisfy Frenkel Topping's strategic developments'. The Loan can be drawn down in several stages on application by Frenkel Topping to MBC and if MBC accept that the intended use is for strategic development. Interest accrues on the amount drawn down under the Loan at a rate of 7% per annum on a daily basis and any interest accrued is paid quarterly. At the time of the announcement, the Company had not drawn down any of the Loan. In consideration of MBC providing the loan facility the Company has also issued options to MBC in respect of 10,000,000 new ordinary shares in the Company at an exercise price of 5p per share (the 'Options'). The Options can be exercised at any time until 4th May 2010 provided that the aggregate value of the Options subscribed for by MBC does not exceed the total of all sums drawn down by Frenkel Topping under the Loan agreement. At present, as none of the Loan has been drawn down, MBC have no rights to exercise any Options. MBC Investments Limited is a Gibraltar based investment company operating in the financial services sector. For further information, please contact: Frenkel Topping Group plc Richard Fraser (Chief Executive) 0161 886 8000 WH Ireland Limited David Youngman 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange
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