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Eagle Eye Telematics plc

Conversion of loans into equity

Eagle Eye Telematics plc (the 'Company'), the provider of integrated telematics technologies, solutions and consulting services to the fleet and risk management markets, announces that, on 30 May 2008, the Company entered into agreements relating to the satisfaction and full discharge of certain loans to the Company from Ralph Stross (a non-executive director of the Company) Stross Financial Services Limited (a company controlled by Ralph Stross), Stuart Krell (the brother of Terry Krell who is also a non-executive director of the Company) and Belgravia Homes Limited (a company controlled by Melvin Lawson) in exchange for the issue by the Company of new ordinary shares of 0.1 pence ('Ordinary Shares') at an issue price of 2 pence per share (the 'Debt for Equity Agreements').  Each of Ralph Stross, Stuart Krell and Melvin Lawson is a substantial shareholder of the Company.

The principal amount of the loans which may be converted and the number of new Ordinary Shares to be issued are as follows: 

	Loans (£)	Ordinary Shares to be issued
Stuart Krell	952,095	47,604,750
Ralph Stross	600,000	30,000,000
Stross Financial Services Limited	352,095	17,604,750
Belgravia Homes Limited	600,000	30,000,000
	2,504,190	125,209,500

 

 

Following the issue of the new Ordinary Shares, the interests of Stuart Krell, Ralph Stross and Melvin Lawson in the issued share capital of the Company would be as follows:

	No. of Ordinary Shares	%
Stuart Krell	111,767,463	34.22
Ralph Stross	111,884,281	34.26
Melvin Lawson	90,000,000	27.56

Each of the Debt for Equity Agreements is conditional upon the Takeover Panel agreeing to waive the requirement for a general offer by Stuart Krell and/or Ralph Stross pursuant to Rule 9 of the Takeover Code on Takeovers and Mergers to acquire all of the shares of the Company which they do not already own. 

The directors of the Company (with the exception of Ralph Stross and Terry Krell) consider, having consulted with the Company's nominated adviser, WH Ireland Limited, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. 

 

Enquiries:

 

Eagle Eye Telematics plc Rodney Graves	01928 795 400
WH Ireland Limited David Youngman	0161 832 2174

 

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