Issue of Equity & Total Voting Rights

Milestone Group Plc

(“Milestone” or the “Company”)


Issue of Equity

Milestone (AIM:MSG), the digital solutions provider, announces that it has agreed to issue 500,000 ordinary shares of 0.1 pence each in the capital of the Company (“Ordinary Shares”) at a price of 1 penny per Ordinary Share, raising £5,000. The Company has also agreed to issue 617,250 Ordinary Shares at a price of 1 penny per Ordinary Share to certain creditors in lieu of £6,172.50 payable in respect of services provided for the Company.

Despite the Company’s current liability position being reduced as a result of the issue of equity, the Company continues to be reliant on its ability to manage the timing of settlement of its liabilities and further fundraisings will be required in the short term.

Application will be made for, in aggregate, 1,117,250 Ordinary Shares to be admitted to trading on AIM, which is expected to occur on or around 20 May 2011.  The new Ordinary Shares, when fully paid and issued, will rank pari passu in all respects with the existing Ordinary Shares of Milestone.

Total Voting Rights

Following the issue of equity, Milestone will have in issue 239,562,225 Ordinary Shares with voting rights.  The Company does not hold any Ordinary Shares in treasury.  The figure of 239,562,225 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA’s Disclosure and Transparency Rules.

So far as the Company is aware and subject to any new notifications received, the following persons will have a notifiable interest in the issued share capital of Milestone following this issue of Ordinary Shares:

                                                                                                                    Current holding                            Resultant holding

Deborah Jane White                                                                      34,883,774 (14.63%)                     34,883,774 (14.56%) 

HBS 049 Limited                                                                            30,000,000 (12.58%)                     30,000,000 (12.52%)

Cormac Crawford                                                                           18,954,772   (7.95%)                     18,954,772    (7.91%)

Martin King                                                                                       13,667,049   (5.73%)                     13,667,049    (5.71%)

BGP Global Services Ltd                                                                 9,090,909   (3.81%)                       9,090,909    (3.79%)

Lynchwood Nominees Ltd                                                              9,083,489   (3.81%)                       9,083,489    (3.79%)

 

FOR FURTHER INFORMATION:

Milestone Group PLC
Deborah White, Chief Executive                            Tel: 020 7929 7826

Cairn Financial Advisers LLP
Nominated Adviser
Liam Murray                                                              Tel: 020 7148 7900

Hybridan LLP
Broker
Claire Louise Noyce                                               Tel: 020 7947 4350

College Hill, PR
Jamie Ramsay / Matthew Smallwood                 Tel: 020 7457 2020