14 August 2008

MG Capital plc 
('MG Capital' or 'the Company')

Issue of Convertible Loan Notes

MG Capital plc (AIM: MAP) has issued £65,000 of convertible loan notes to Peter Hannen, the Company's Chairman.  The loan stock has been subscribed for in cash at par value.  The loan notes carry interest at the rate of 6.5 per cent. per annum and have a life of three years. The Company may redeem them at any time during that period or, at the option of the holder, they may be converted into new ordinary shares in the Company.  The conversion price is the higher of either the nominal value of the ordinary shares or the average mid market price of the ordinary shares during the 5 business days prior to the date on which notice of conversion is given.

With the exception of Mr Hannen, who is involved in the transaction as a related party, the directors of MG Capital consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

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