Eagle-i Holdings Plc

Loan Agreements

Eagle-i Holdings Plc (the 'Company'), announces that on 28 May 2009 the Company formally agreed the terms of a loan (the 'Loan') for the sum of £1.2m which is owing by the Company to Terry Krell, a non-executive director of the Company. The amount owing arose following the payment, on 12 March 2009, by Terry Krell of £1.2m to the Royal Bank of Scotland plc ('RBS') in satisfaction of his personal guarantee of RBS's loan to the Company of the same amount.  The Loan bears interest at a rate of 2% per annum above LIBOR and is repayable on or before 1 June 2010. 

The directors of the Company (with the exception of Terry Krell who is involved in the transaction as a related party) consider, having consulted with the Company's nominated adviser, WH Ireland Limited, that the terms of the Loan are fair and reasonable insofar as its shareholders are concerned.

On the same date, the Company also entered into separate loan agreements (the 'New Facility Agreements') with each of Belgravia Homes Limited (a company controlled by Melvin Lawson, a significant shareholder of the Company), Stuart Krell (the brother of Terry Krell) and Stross Financial Services Limited (a company controlled by Ralph Stross, a non-executive director of the Company). Pursuant to each of the New Facility Agreements, the Company has access to a loan facility of up to £250,000 (£750,000 in aggregate) which will be used to facilitate the further development of the Company.  £232,000 of the amount available under the facility provided by Stuart Krell has now been drawn down. Each loan is repayable on or before 1 June 2010 and carries an interest rate of 2% per annum above the base rate of Barclays Bank plc.

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

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