Cattles plc
16 December 2009

CATTLES plc

General Meeting to consider serious loss of capital 

Cattles plc (the 'Company') announces that the General Meeting convened to consider its serious loss of capital pursuant to section 656 of the Companies Act 2006 was held at 12 noon today at Congress Centre, 28 Great Russell Street, London, WC1B 3LS. 

The Directors updated shareholders as to the Company's position and explained the action the Board was taking to address the current circumstances of the Company, including the recently announced standstill agreed with financial creditors. The Board also responded to shareholders' questions. 

At the meeting, a resolution was proposed by a shareholder, and passed on a show of hands by shareholders representing circa one per cent. of the Company's issued share capital.  This was a resolution for the Company to request the financial creditors to sanction an amount of up to £500,000 to fund a petition by shareholders for the winding up of the Company. 

The Directors do not believe that a winding up of the Company would be in the interests of any of the Company's stakeholders. It would be inconsistent with the Directors' duties to preserve value for creditors and contrary to the objective of achieving a consensual restructuring.  Furthermore, having taken advice, it is the Directors' view that such a petition would be highly unlikely to succeed.

However, as required by the shareholders present and voting at the General Meeting, the Directors will convey this proposal to the financial creditors.  

Margaret Young, Executive Chairman, said: "The Board of Cattles and I very much regret that today's update confirms the significant loss suffered by our shareholders. However, in our current financial situation, our duty now has to be to preserve value for creditors. We do not believe that the pursuit of any such petition to wind up the Company would be in the interests of any of our stakeholders." 

For further information: 

Margaret Young, Chairman, Cattles plc                                               020 7269 7252 
Geoffrey Pelham-Lane/Paul Marriott, Financial Dynamics