Issue of options and Issue of Equity

Milestone Group Plc

(“Milestone” or the “Company”)

Issue of options

The Company announces that on 15 August 2011 it granted a total of 19,500,000 options over ordinary shares in the Company with an exercise price of 1 penny per ordinary share, of which 13,500,000 options have been granted to directors of the Company. In each case, half of the options vest once the closing mid-market share price of the Company has been more than or equal to 2 pence for a period of 15 consecutive business days. The remainder vest once the closing mid-market share price of the Company has been more than or equal to 3 pence for a period of 15 consecutive days. The options are exercisable on or following the first anniversary of the date of issue and will lapse on the tenth anniversary of the date of issue.

Details of the options issued to directors of the Company and their respective shareholdings are set out below.

Name of                             Number of         % of issued         Number of         Total options     Options held
Director                            shares held       share capital    new options         now held            as % of issued
                                                                                                            granted                                        share capital 1
     
Deborah White                34,883,774            12.06%                6,000,000 2        6,000,000                2.08%
Guy van Zwanenberg       3,323,500              1.15%                 2,500,000           2,500,000                0.86%
Anthony Moss                                    -                        -                  1,000,000           1,000,000                0.35%
David Hill                            1,000,000              0.35%                 4,000,000           4,000,000                1.38%

Total                                  39,207,274            13.56%               13,500,000         13,500,000                4.67%

1 based on issued share capital figure as stated below, pursuant to the issue of equity 
2 these options have been issued under the Company’s EMI scheme

Issue of Equity

The Company has issued 2,976,500 new ordinary shares at a price of 1 penny per share to certain creditors in lieu of £29,765 payable in respect of services performed to the Company. 

Application will be made for the 2,976,500 new ordinary shares to be admitted to trading on AIM.  Trading in the new ordinary shares is expected to commence on or around 22 August 2011. The new ordinary shares will rank pari passu with the existing ordinary shares. Following the issue of equity, the enlarged issued share capital of the Company will comprise 289,228,025 ordinary shares of 0.1 penny each.


FOR FURTHER INFORMATION:

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

Cairn Financial Advisers LLP, Nominated Adviser
Liam Murray / Avi Robinson                                         Tel: 020 7148 7900

Hybridan LLP, Broker
Claire Louise Noyce                                                     Tel: 020 7947 4350

College Hill, PR
Jamie Ramsay                                                               Tel: 020 7457 2020