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Creon Corporation plc (AMED)

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Friday 03 October, 2008

Creon Corporation plc

Pinnacle Disposal

For immediate release: 3 October 2008

                             Creon Corporation Plc                             

                          ("Creon" or the "Company")                           

                               Pinnacle Disposal                               

Following the announcement of 1 July 2008 regarding the acquisition of Pinnacle
Plus Limited ("Pinnacle"), the provider of services to ground support equipment
businesses, the Directors of Creon Corporation (AIM: CRO) announce that they
have agreed to sell their shareholding in Pinnacle to Felbright Limited, a
vehicle principally owned by Pinnacle's management, and restructure financing
already provided to Pinnacle by Creon ("Transaction").

The net consideration will be £1 and Creon will convert funding already
provided to Pinnacle by Creon, totalling £400,000, into preference shares in
Pinnacle earning interest at 7% per annum and redeemable by Pinnacle within 5

It was envisaged at the time of the acquisition that Creon would provide
sufficient working capital in order for Pinnacle to continue with its sustained
growth plans. The working capital requirement was expected to be financed from
the repayment of certain of Creon's existing property mezzanine loans. However,
the significant deterioration in the UK property market has meant that the
mezzanine loans have not been repaid as expected and as a result Creon is not
in a position to continue to provide Pinnacle with the working capital as
envisaged. Pinnacle reported audited losses of approximately £1.4 million in
the year to 30 April 2007 and had net liabilities of £0.6 million on the same

As a result of preparing Creon's interim accounts, it has become apparent that
significant provisions will need to be taken against the carrying value of the
Company's property mezzanine loan portfolio. The extent of the provisions will
be finalised for the interim accounts to be issued by the end of October.

Jonathan Freeman of Creon commented,

"I anticipate that the Transaction announced today will allow Pinnacle to be
properly funded as it continues to grow and will also allow Creon to focus on
trying to realise value from its mezzanine loans whilst remaining as a
shareholder in Pinnacle. I believe that this Transaction is in the best
interests of our shareholders."

- Ends -

For further information please contact:

Creon Corporation Plc Jonathan Freeman +44 (0)20 7752 0215

Daniel Stewart & Company Plc Oliver Rigby +44 (0)20 7776 6550

GTH Media Relations Toby Hall +44 (0)20 7153 8039

Christian Pickel +44 (0)20 7153 8036


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