IEN.L

INTELLIGENT ENVIRONMENTS GROUP PLC

('IE' or 'the Company')

Proposed cancellation of the share premium account

And Notice of General Meeting

Intelligent Environments Group plc has today posted a Circular to Shareholders detailing the proposed cancellation of the Company's share premium account, inter alia, to enable the future payment of dividends as well as allow a more efficient utilisation of the Company's reserve accounts.

 The Company, as at 31 December 2007, had an accumulated deficit on its profit and loss account of £17,689,871. The absence of distributable profits means that the Company is currently unable to pay dividends. 

The cancellation of the Company's share premium account requires the approval of Shareholders at the General Meeting and is conditional upon the approval of the High Court. Accordingly, as soon as possible after receiving the approval of Shareholders at the General Meeting, the Company will apply to the High Court for its approval.

Subject to the Court being satisfied that the Company's creditors are adequately protected, the reserve produced by the cancellation will be available to eliminate the deficit on the Company's profit and loss account. The balance arising, again subject to the protection of creditors, will create a distributable reserve available for the corporate purposes of the Company including, inter alia, to enable the Board to give consideration to the payment of dividends in the future.

The Board believes that the proposal being put to Shareholders as detailed in the Circular is in the best interests of Shareholders. Accordingly, the Directors unanimously recommend that all Shareholders to vote in favour of the Resolution to be proposed at the General Meeting. 

The Directors intend to vote in favour of the Resolution in respect of their own beneficial holdings amounting to 23,471,455 Ordinary Shares (representing approximately 14.3 per cent. of the Company's issued share capital).

The General Meeting of the Company to be held at 1.30 p.m. on Tuesday 24 March 2009 at the offices of Taylor Wessing LLP, 5 New Street Square, London EC4A 3TW and the Circular is available to download from www.ie.com.

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