Acquisition

Rotala PLC 21 June 2007 Rotala plc ('Rotala' or 'the Group') Acquisition of Ludlows of Halesowen Limited Further to the announcement on 18 June 2007 of an exclusivity arrangement, Rotala is pleased to announce that it has exchanged contracts to acquire the entire issued share capital of Ludlows of Halesowen Limited ('Ludlows'). The Directors expect the acquisition of Ludlows to be earnings enhancing immediately. Ludlows is a bus business that operates 21 buses in the Halesowen district of Birmingham approximately fourteen miles from the main depot of Flights Hallmark Limited, a subsidiary of Rotala ('Flights') in the Aston area of Birmingham. The current work undertaken by Ludlows is almost exclusively commercial stage carriage. The Directors believe that the acquisition of Ludlows will improve the ability of the enlarged Group to tender for and operate subsidised routes in Worcestershire and Warwickshire by enhancing the efficiency of the routes that the Group currently carries out in these counties. Flights intends to transfer vehicles to the Halesowen depot of Ludlows. This will free up space at the Long Acre depot and enable further expansion work to be carried out. The Directors anticipate that cost savings will be achieved from a reduction in Ludlows' administrative and accounting overheads. The consideration for the acquisition of Ludlows is £850,000 payable in cash. Ludlows reported sales of £1.5 million in its unaudited accounts for the financial year ended 31 March 2006, with loss before tax of £24,000 and net assets of £308,000 as at 31 March 2006. The acquisition of Ludlows is being funded in part through the proceeds of the placing announced on 18 June 2007, and is therefore dependent, inter alia, upon the placing becoming unconditional. The acquisition is also conditional upon Ludlows having entered into a property lease in respect of a property currently occupied by Ludlows on such terms as Rotala in its absolute discretion approves on or before 15 July 2007 (or such later date as the Company and the Sellers agree, being not later than 5.00pm on 1 August 2007), and Rotala being satisfied in all respects with the results of its enquires into the financial and other affairs of Ludlows on or before 15 September 2007. Enquiries: Contacts: John Gunn, Chairman 020 7236 6236 Kim Taylor, CEO 07918 883796 Romil Patel / Rhod Cruwys, Blue Oar Securities 020 7448 4400 This information is provided by RNS The company news service from the London Stock Exchange

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Rotala (ROL)
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