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23 January 2009

Promethean Plc (the 'Company')

Proposed Tender Offer

The Company's investment strategy has yielded a number of successful investments since the original placing in June 2005.  The Company's current portfolio has a number of interesting prospects where the Board believes value will accrue over time. In the current environment however it is difficult to accurately assess when this value will be realised as a number of the portfolio companies operate in sectors that have been impacted by the turmoil in the financial markets and the associated economic downturn.

Despite the Company's positive investment performance since the original share placing in June 2005, the Company's share price has reflected a lack of liquidity in the shares. This has caused the Board to carefully consider how best to proceed and how best to utilise the cash resources of the Company going forward.

After careful consideration, the Board has sought to balance the interests of those shareholders who are keen for the Company to continue with its original investment strategy and those investors who are seeking to realise all or part of their investment. After discussions by the Board and its advisers with a number of the Company's major shareholders, the Board has developed proposals whereby the Company will operate a tender offer pursuant to which the Company will acquire up to £25 million of shares from shareholders that wish to exit at a maximum price of 70.5 pence per share (the 'Tender Offer').  The Tender Offer will be open only in respect of those shares held continuously on the register from 23 January 2009 until the closing date for the Tender Offer.  

The Board believes that the proposed Tender Offer balances the interests of those shareholders that wish to remain invested in the Company and those that wish to realise all or part of their investment.

The Tender Offer requires the approval of shareholders. Accordingly, a circular detailing the terms and conditions of the proposed Tender Offer and convening an extraordinary general meeting ('EGM') to approve the Tender Offer will be posted to shareholders in early February 2009. The EGM will be held in late February/early March 2009 with settlement of the Tender Offer, if approved at the EGM, as soon as practicable thereafter.

Enquiries:

Sir Peter Burt / Mike Biddulph

Promethean Investments LLP     +44 (0)20 7479 7660

James King / Gillian McCarthy

Fairfax I.S. PLC                         +44 (0)20 7598 5368

Other corporate information can be found at: http://www.prometheanplc.com 

Promethean Investments LLP is authorised and regulated by the Financial Services Authority.

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