RCG Holdings Limited

("RCG" or the "Company")

Statement regarding Hong Kong Court case ruling

The Company notes the judgement (the "Judgement") recently handed down by the High Court of Hong Kong in respect of the estate of the late Ms. Nina Kung, in which the court ruled in favour of Chinachem Charitable Foundation Limited.  The Company understands that the shares of Veron International Limited ("Veron") which holds approximately 24% of the total issued share capital of the Company at the date of this announcement, is part of the estate of the late Ms. Nina Kung.  As a result of the Judgement, it is possible that control and/or ownership of Veron may change hands.  The Company also notes that Mr. Tony Chan ("Mr. Chan"), one of the other parties to the estate dispute and who holds approximately 23.22% of the total issued share capital of the Company through his interest in The Offshore Group Holdings Limited, has made public statements about his intention to lodge an appeal against the Judgement.  Unless and until the appeal process is concluded or the dispute over the estate of the late Ms. Nina Kung is otherwise resolved, the ownership and/or control of Veron remains uncertain.

On 3 February 2010, certain officers from the Hong Kong Police Force attended the Company's office in Hong Kong and the homes of two directors, Mr. Raymond Chu and Ms. Anita Chau with a view to looking for and taking possession of materials which may be connected to certain matters arising from the Judgement ("Visits").  The Company reassures shareholders that, to the best knowledge of the Company, the Visits are totally unrelated to the Company and the two directors in question.

The board of directors of the Company ("Board") wishes to reiterate that Veron has been a financial investor in the Company and has not participated in the management and operations of the Company.  The Company is operated under its own management.  The Board does not expect the Judgement or the Visits to have any impact on the operation, financial and trading position of the Company. Further announcements will be made if and when necessary.

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About RCG

RCG, a leading global provider of integrated biometrics and RFID security solutions, is publicly quoted and its shares are listed on the Main Board of the Stock Exchange of Hong Kong Limited and admitted to trading on the AIM Market of the London Stock Exchange and the PLUS market. The Company has an aggressive growth strategy with a clear focus on developing new applications and revenue streams for global roll-out, particularly in the security applications industry.