£9.5m Equity Issue and Capital Restructuring

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Superglass Holdings plc

("Superglass" or the "Company")

Proposed Equity Issue to raise approximately £9.5 million

and Capital Restructuring

Firm Placing of 37,818,196 New Ordinary Shares

Placing and Open Offer of up to 9,454,549New Ordinary Shares at a price of 20 pence per share

Conversion of £12.15 million of bank debt into Convertible Shares

Share Consolidation,

and Notice of General Meeting

Further to the announcement issued on 31 October 2011, Superglass today confirms that it has successfully raised approximately £8.0 million net of expenses from investors (the "Proposed Equity Issue") and agreed a capital restructuring in collaboration with the Company's bankers, Clydesdale Bank to convert £12.15 million of its bank debt into Convertible Shares (the "Capital Restructuring").

Completion of the Proposed Equity Issue and Capital Restructuring is subject, inter alia to shareholder approval, which will be sought at a General Meeting of the Company to be held at 10.00 a.m. on 30 November 2011. Dealings in the New Ordinary Shares are expected to commence at 8.00am on 1 December 2011.

A prospectus providing full details of the Proposed Equity Issue and Capital Restructuring incorporating notice of the General Meeting will be posted to shareholders later today. Once it has been posted, a copy of the prospectus will be available on the Company's website at www.superglass.co.uk.

Details of the Proposed Equity Issue and Capital Restructuring are as follows:

·; Firm Placing of 37,818,196 New Ordinary Shares to raise £7.6 million from certain existing and new investors at the Issue Price of 20 pence per share;

·; Placing and Open Offer of up to 9,454,549 New Ordinary Shares to raise up to £1.9 million, representing in aggregate 18.8 per cent. of the Enlarged Share Capital at the Issue Price of 20 pence per share;

·; The Open Offer Shares have been conditionally pre-placed by Brewin Dolphin with institutional investors at the Issue Price, subject to clawback by Qualifying Shareholders in order to satisfy valid applications under the Open Offer;

·; On completion of the Firm Placing and Placing and Open Offer, the Company intends to undertake a share consolidation such that the Existing Ordinary Shares are consolidated into Post-Consolidation Ordinary Shares on a twenty for one basis;

·; The Issue Price of 20 pence per New Ordinary Share represents an effective 88.9 per cent. discount to the Closing Price of 9.0 pence (prior to the Share Consolidation) on 4 September 2011, being the business day prior to the announcement by Superglass of its intention to carry out a capital raising and a 52.9 per cent. discount to the Closing Price of 2.125 pence on 4 November 2011;

·; The Capital Restructuring will reduce the Company's core borrowings to approximately £5.1 million:

·; Clydesdale Bank has agreed the conversion of £12.15 million of the current outstanding core borrowings into 14,985,748 Convertible Shares, which subject to certain conditions, will have the rights of conversion into Ordinary Shares in the capital of the Company representing 23 per cent. of the entire issued share capital following conversion;

·; In conjunction with these proposals, the Company has submitted a Regional Selective Assistance ("RSA") grant application to Scottish Enterprise. The Board anticipates that a grant award of between £1.6 million and £2 million will be formally approved at a meeting of the Scottish Enterprise grant executive scheduled to take place on 8 November 2011; and

·; The net proceeds from the Proposed Equity Issue and the RSA grant funding will be used to fund the Company's planned capital expenditure programme and to provide working capital.

Tim Ross, Chairman commented:

"I would like to thank all our existing and new investors as well as Clydesdale Bank for their substantial support, together with our team of advisers who have worked with us on this transaction. Today's proposals radically transform Superglass' capital base, not only providing us with the working capital we need to grow our business but enabling us to complete a capital investment programme which will substantially improve the operating efficiency of our manufacturing plant. I would encourage all our investors to vote in favour of the proposals."

For further information, please contact:

Introduction

i. the passing of the Resolutions at  the GeneralMeeting, further detailsof which are set out in the prospectus;

ii. Admission becomingeffective on or before 8.00 a.m. on 1 December 2011 (or such later date and/or  time as the Company and Brewin Dolphin may agree, being no later  than 8.00 a.m. on 22 December 2011);

iii. the Placing Agreement having become unconditional in all other respects and not having been terminated in accordance with its terms prior to Admission; and

iv. the Company being satisfied that the terms and quantum of the RSA grant describedin the prospectus are appropriate with respect to its funding requirements; ClydesdaleBank being satisfied with the  terms  and  quantum  of  the  grant  and  Brewin  Dolphin  being  satisfied  with  the quantum of the grant.

Accordingly, if any of such conditions are not satisfied, or, if applicable, waived, the Issue will not proceed and any Open Offer Entitlements admittedto CREST will thereafter be disabled.

While the Board anticipates that a grant award will be formally approved at a meetingof the Scottish Enterprise grant executive scheduled to take place on 8 November 2011, it is not aware of the detailed terms which  would  attach  to  any  such  grant,  nor can  the  Directors  formulate  a  reasonable  expectation  of  such detailed terms. 

On completion of the Firm Placing, Placing and Open Offer, it is intended that the Company shall undertake a share consolidation such that the Existing Ordinary Shares are consolidated into Post-Consolidation Ordinary Shares on a twenty for one basis. The effect of the Share Consolidation will be to reducethe total number of OrdinaryShares in issue prior to Admission.

Background to and reasons for the Issue

·; Location of the project;

·; Size of the business;

·; Size and cost of the project;

·; Number of jobs created or safeguarded;and

·; Quality and type of jobs.

Use of proceeds

The use of proceeds of the Issue is set out below:

£m £m

Working capital (including normalisation of current working capital

balances) 3.06

Capital expenditure programme (gross cost) 6.50

Less expected grant funding (1.60)*

Capital expenditure funded through equity issue 4.90

Fees and expenses 1.50

Total 9.46

* Minimum expected award

Details of the Debt Reduction, Capital Restructuring and the issue of Convertible Shares

(i) between the second and twelfthanniversary following Admission, provided the Company's volume weighted average share price per ordinary shares equals or rises above 70 pence on a post- consolidation basis for a period of at least 20 consecutive Business Days, the First Tranche Shares maybe converted; or

(ii) between the second and twelfthanniversary following Admission, provided the Company's volume weighted  average  share  price  per  ordinary  share  equals  or  rises  above  90  pence  on  a  post- consolidation  basis  for  a  period  of  at  least  20  consecutive  Business  Days,  the  Second  Tranche Shares may be converted; or

(iii) between the second and twelfth anniversaryfollowing Admissionthere is a refinancingof all of the

Group's debt owed to Clydesdale Bank and/or any member of its group with a third party bank; or

(iv) at  any  time  if  the  ordinary  shares  in  the  Company  cease  to  be  listed  either  on  the  Official  List maintained  by  the  UK  Financial  Services Authority  or  on  the  main  market  of  the  London  Stock Exchange or on AIM; or

(v) on the sale of more than 50 per cent. of the issued ordinary share capital of the Company and/or the whole or substantially the whole of the business and/or assets of the Company and/or Group; or

(vi) on a resolution to wind up the Company being passed by Shareholders.

The residual core borrowings of £5.1 million shall be repayable upon the following principalamended and restated terms:

(i) for a period of two years following Admission, no repayments shall be made;

(ii) thereafter, twelve equalquarterly repayments of £425,000, commencing in November2013 and ending in August 2016;

(iii) in respectof the financial year ending 31 August 2013 or later, an amount equal to 50 per cent. of

the amount by which Excess Cashflow (as detailed in the New Facilities Agreement) exceeds £1.0

million shall be appliedin prepayments of the facilities; and

(iv) interest  shall  be  levied  on  the  outstanding  amount  of  the  residual  core  borrowings  at  a  rate equivalent to LIBOR from time to time plus a margin of 4.75 per cent.

The revised repaymentschedule represents a significant reduction in the annual debt servicecost for the

Company, even following expiry of the two year repaymentholiday, with no repaymentsscheduled during the period of the Capital Expenditure programme.

The Group has also agreed a revolving facility to finance intra-month swings in working capital. The limit

of the revolving facility is the aggregate of;

·; the amount of the RSA grant awarded (up to a maximum of £2,000,000) less the amount of the RSA

grant actuallyreceived (up to a maximum of £2,000,000); and

·; an amount of up to £5,000,000, such amount being based upon the projected working capital requirements of the Group.

Details of the Capital Expenditure Programme to Achieve Lower Delivered Costs

Market Drivers and Future Strategy

·; a recapitalisation of the business as a result of the Proposals;

·; the  delivery  of  a  material  improvement  in  the  Group's  competitive  market  position  through  the lower delivered cost initiative which underpins the Group's capital expenditure plan; and

·; continued diversification and strengthening of  the Group's market  position by broadening its customer  base,  its  penetration  of  new  market  channels  and  the  introduction  of  new  value-added products.

Current trading and prospects and estimated result for the financial year ended 31 August 2011

Information on the Issue

The Issue consists of the Firm Placing of 37,818,196 New Ordinary Shares (representing 75.4 per cent. of the Enlarged Share Capital), and a Placing and Open Offer of 9,454,549 New Ordinary Shares (representing 18.8 per cent. of the Enlarged Share Capital) through which Qualifying Shareholders can subscribe for Open Offer Shares on the basis of 62 Open Offer Shares for every 380 Existing Ordinary Shares held. All of the New Ordinary Shares will be issued at a price of 20 pence per share (representing a discount of 52.9 per cent. to the Closing Price of 2.125 pence (the Closing Price being prior to the Share Consolidation described in paragraph 9) on 4 November 2011, being the last practicable Business Day before the announcement of the terms of the Issue).

Brewin  Dolphin,  as  agent  for  the  Company,  has  conditionally  placed  the  Open  Offer  Shares  with institutional investors at the Issue Price, subject to clawback to satisfy valid applications from Qualifying Shareholders under the Open Offer.

The Firm Placing

Brewin Dolphin has placed firm the Firm Placing Shares at the Issue Price pursuant to the Placing Agreement. The Firm Placing Shares represent approximately 80.0 per cent. of the New Ordinary Shares and have been placed with certain institutional investors. The Firm Placing Shares are not subject to clawback. The Firm Placing is conditional, inter alia, upon the passing, without amendment, of the Resolutions and Admission taking place.

The  Company  is  aware  that  the  following  institutional  investors  intend  to  subscribe  for  more  than  5  per cent. of the total number of New OrdinaryShares issued:

Tim Ross and David Shearer, both Directors of the Company, have agreedto subscribe for 102,743 and 75,000 NewOrdinary Shares, respectively, under the Firm Placing.

The Open Offer Shares

Brewin Dolphin has also placed the PlacingShares with new and existinginstitutional investors at the Issue Price. The number of Placing Shares to be issued will be 9,454,549 New Ordinary Shares. The Placing Shares will be subject to clawback to satisfyvalid applications under the Open Offer.

Qualifying Shareholders are being given the opportunity under the Open Offer to subscribe, for Open Offer Shares  at  the  Issue  Price,  payable  in  full  on  application  and  free  of  expenses,  pro  rata  to  their  existing shareholdings, on the following basis:

62 Open Offer Shares for every 380 Existing Ordinary Shares

held by them and registered in their names on the Open Offer Record Date and so in proportion to any other number of Existing Ordinary Shares then held, rounded down to the nearest whole number of Open Offer Shares. Qualifying Shareholders may apply for any whole number of Open Offer Shares. The maximum number of Open Offer Shares will be equal to the number of Placing Shares placed by Brewin Dolphin with new and existing institutional shareholders.

Tim Ross, David Shearer and David Gray, Directors of the Company, have indicated their intention to apply

for their full pro rata entitlements under the Open Offer of 21,845, 4,532 and 4,079 New Ordinary Shares respectively.

The Open Offer is not a rights issue. Qualifying CREST Shareholdersshould note that although the OpenOffer Entitlements will be admittedto CREST and be enabledfor settlement the Open Offer Entitlements will not be tradableand, applications in respect of the Open Offer Entitlements may onlybe made by the Qualifying Shareholder originally entitled or by a person entitled by virtue of a bona fide market claim raised by Euroclear UK & Ireland's Claims Processing Unit. Qualifying non- CRESTShareholders should note that the Application Form is not a negotiable documentand cannot be traded.Qualifying Shareholdersshould be aware that in the Open Offer, unlike in a rights issue, any  Open  Offer  Shares  not  applied  for  will  not  be  sold  in  the  market  or  placed  for  the  benefit  of Qualifying Shareholders who do not apply under the Open Offer and QualifyingShareholders who do not apply to take up their Open Offer Entitlements will have no rights under the Open Offer or receive any proceeds from it.

Application has been made for the Open Offer Entitlements of Qualifying CREST Shareholders to be admitted to CREST. It is expected that such Open Offer Entitlements will be admitted to CREST on 8 November 2011. The Open Offer Entitlements will also be enabled for settlement in CREST on 8 November 2011 to satisfy bona fide market claims only. Applications through the CREST system may only be made by the Qualifying CREST Shareholder originally entitled or by a person entitled by virtue of a bona fide market claim.

Further details of the Open Offer and the terms and conditions on which it is being made, including the procedure for application and payment, are contained in the prospectus and for non-CREST Qualifying Shareholders on the accompanying Application Form. To be valid, Application Forms or CREST instructions (duly completed) and payment in full for the Open Offer Shares applied for, must be received by the Company's registrars. Non-CREST Application forms should be returned to Capita Registrars, at Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, by no later than 11.00 a.m. on 29 November 2011.

Qualifying non-CREST Shareholders will have received an Application Form which sets out their maximum entitlement to Open Offer Shares as shown by the number of Open Offer Entitlements allocated to them.

Qualifying CREST Shareholders should note that, although their basic Entitlement will be admitted to CREST and be enabled for settlement, applications in respect of entitlements under the Open Offer may only be made by the Qualifying Shareholder originally entitled or by a person entitled by virtue of a bona fide market claim raised by Euroclear's Claims Processing Unit. Qualifying Non-CREST Shareholders should note that their Non-CREST Application Form is not a negotiable document and cannot be traded.

Qualifying CREST Shareholders will receive a credit to their appropriate stock accounts in CREST in respect of their Open Offer Entitlements on 8 November 2011.

General

The New Ordinary Shares will, when issued and fully paid, rank pari passu in all respects with the Existing Ordinary Shares.

Applications have been made to the UK Listing Authority for the New OrdinaryShares to be listed on the Official List and to the London Stock Exchange for the New OrdinaryShares to be admitted to trading on the main market of the London Stock Exchange. It is expected that Admission will become effective and dealings in the New OrdinaryShares will commence at 8.00 a.m. on 1 December 2011.

The Open Offer is not being made to certain Overseas Shareholders, as detailed in the prospectus.

The Issue is conditional, inter alia, upon the following:

i. the passingof the Resolutions at the General Meeting,further details of which are set out in the

Notice of General Meeting 

ii. Admissionbecoming effective on or before 8.00 a.m. on 1 December 2011 (or such later date and/or  time  as  the  Company  and  Brewin  Dolphin  may  agree,  being  no  later  than  8.00  a.m. on

22 December 2011);

iii. the Placing Agreement having become unconditional in all other respects and not having been terminated in accordance with its terms prior to Admission; and

iv. the Company being satisfied that the terms and quantum of the RSA grant are appropriate with respect to its funding requirements, ClydesdaleBank  being satisfied with the terms and quantum and Brewin Dolphin being satisfied with the quantum of the grant.

While the Board anticipates that a grant award will be formally approved at a meeting of the Scottish Enterprise grant executive scheduled to take place on 8 November 2011, it is not aware of the detailed terms which would attach to any such grant, nor can the Directors formulate a reasonable expectation of such detailed terms.

As the detailedterms of the grant are unknown, the Company, Brewin Dolphin and Clydesdale Bank cannot state  comprehensive  criteria  against  which  they  would  evaluate  the  suitability  of  the  grant  (if  awarded). However, the Company is presentlyaware that ClydesdaleBank will require satisfactory evidencethat the RSA  grant  has  been  approved  in  an  amount  of  not  less  than  £1.6 million (or such lesser amount as the Company and Clydesdale Bank may agree) by 14 November 2011 and to  receive  a  copy  of  material  formally  awarding  such  grant  (in  a  form  satisfactory  to  the  bank)  by 21 November 2011, and that Brewin Dolphin will need to be satisfied with the quantum of such grant.

Given  the  uncertainty  surrounding  the  terms  and  conditions  of  the  grant  and  the  inability  to  state comprehensive  criteria  against  which  the  grant  shall  be  assessed  by  the  Company,  Clydesdale  Bank  or Brewin Dolphin,the Directors cannot give an indication of whether the criteria will be met.

Once  the  outcome  of  the  grant  application  is  known  and  Clydesdale  Bank,  Brewin  Dolphin  and  the Company have formulated an initial assessment of the suitability of the grant (if awarded), a supplementary prospectus will be publishedin order to provide an update on the position at that time.

If the conditions of the Placing Agreement are not fulfilled or (where capable of waiver) waived on or before

8.00 a.m. on 1 December 2011 (or such later time and date as the Company and Brewin Dolphin may agree being not later than 8.00 a.m. on 22 December 2011), the Open Offer will not become unconditional andapplication monies will be returned to applicants, without interest, as soon as practicable thereafter.

The  Directors  do  not  have  a  present  intention  to  allot  Ordinary  Shares  other  than  pursuant  to  the  Firm Placing, Placing and Open Offer and pursuant to a conversion of Convertible Shares into Ordinary Shares pursuant to the terms of issue of the ConvertibleShares.

Share Consolidation

Under the Proposals, it is intended that the Company will undertake a share consolidation such that Existing Ordinary Shareswill be consolidated into Post-Consolidation Ordinary Shares on a twentyfor one basis. The effect of the Share Consolidation will be to reduce the total number of OrdinaryShares in issue prior to Admission.

The purpose of the Share Consolidation is to reduce the total number of shares in issue following the Firm Placing, Placing and Open Offer. The Directorsbelieve that this may reduce the volatility in the price of the Company's Ordinary Shares and may ensure that the price of the Ordinary Shares is more appropriate for a company of Superglass' size than would otherwisehave been the case following the Proposals.

Following  the  Share  Consolidation  and  prior  to  the  issue  of  the  New  Ordinary  Shares,  the  Company's issued  ordinary  share  capital  will  comprise  2,896,936  ordinary  shares  of  20  pence  each  in  the  capital  of  the Company.

Fractional entitlements to Post-Consolidation OrdinaryShares will, so far as possible,be aggregated and be sold at the best price reasonably obtainable in the market for the benefit of the Company.

Following  completion  of  the  Share  Consolidation,  new  share  certificates  will  be  issued  to  those  existing Shareholders who hold their sharesin certificatedform. The ShareConsolidation is conditional upon the approval of the Shareholders at the GeneralMeeting as requiredby the Act and the Articles. Due to the interconditionality of the Resolutions proposed at the General Meeting,all such Resolutions will need to be passed in order for the Share Consolidation to take effect.

Working capital

The Company believes that the Group does not have sufficient working capitalfor its present requirements, that is, for at least 12 months from the date of this document.

As  the  Firm  Placing,  Placing  and  Open  Offer,  and  New  Facilities  Agreement  are  conditional  on  the Company being satisfied that the terms and quantum of the RSA grant (if  awarded)  are  appropriate  with  respect  to  its  funding  requirements  and  on Clydesdale Bank being satisfied with the terms and quantum and Brewin Dolphinbeing satisfied with the quantum  of  the  grant  (if  awarded),  the  Company  cannot  take  into  account  either  the  proceeds  of  the proposed  Placing,  Firm  Placing  and  Open  Offer  or  the  New  Facilities Agreement  when  determining  its sufficiency of working capital.

While  the  Board  anticipates  that  a  grant  award  will  be  formally  approved  at  a  meeting  of  the  Scottish Enterprise  grant  executive  scheduled  to  take  place  on  8  November  2011,  it  cannot  anticipate  what  the detailed  terms  of  the  grant  may  be,  nor  can  the  Directors  formulate  a  reasonable  expectation  of  such detailed  terms.  However,  the  Directors  understand  from  discussions  with  the  Scottish  Enterprise  grant executive that the terms and conditions are likely to relate to, inter alia, the amount of funding raised by the Issueand the amount of capital expenditure.

As the detailed terms of the grant are unknown, the Company, Brewin Dolphin and Clydesdale Bank cannot state comprehensive criteriaagainst which they would evaluatethe suitability of the grant (if awarded) for the purposes of the conditionsof the Issue. However, the Company is presentlyaware that ClydesdaleBank will require satisfactory evidencethat the RSA grant has been approved in an amount of not less than £1.6 million (or such lesser amount as the Company and Clydesdale Bank may agree) by 14 November2011 and to receive  a  copy  of  material  formally  awarding  such  grant  (in  a  form  satisfactory  to  the  bank)  by 21 November 2011 and that Brewin Dolphin will need to be satisfied with the quantum of such grant.

Given the uncertainty surrounding the terms of the grantand the inability to state comprehensive criteria against  which  the  grant  shall  be  assessed  by  the  Company,  Clydesdale  Bank  or  Brewin  Dolphin,  the Directors cannot at this time give an indication of whether or not the criteria will be met.

Once  the  outcome  of  the  grant  application  is  known  and  Clydesdale  Bank,  Brewin  Dolphin  and  the Company have formulated an initial assessment of the suitability of the grant (if awarded), a supplementary prospectus will be publishedin order to provide an update on the position at that time.

If the grant is not approved

Should Clydesdale Bank not receive satisfactory evidence that the RSA grant has been approved in an amount of not less than £1.6 million (or such lesser amount as the Company and Clydesdale Bank may agree and subject to Brewin Dolphin being satisfied with the quantum of such grant) by 14 November 2011 or receive a copy of material formally awarding such grant (in a form satisfactory to the bank) by 21 November 2011, then the current temporary and conditional relaxations and amendments to the Company's facility structure with Clydesdale Bank will expire on 14 November 2011 or 21 November 2011 (respectively).

If the RSA grant is not approved (as discussedabove) by 14 November 2011, then based on forecast trading and the Company's working capital position at that time, the Directorsexpect that the Company will exceed its overdraftfacility by £1.1 millionon 14 November 2011 as a result of the deferralof the £0.8 million repayment originallydue to Clydesdale Bank on 31 August 2011 falling due.

If Clydesdale Bank does not receive material satisfactory to it formallyawarding the grant to the Company (as discussedabove) by 21 November 2011, then based on forecasttrading and the Company's working capital at that time, the Directors forecast that the Company will exceed its overdraft facility by £1.6 million on 21 November 2011 as a result of the deferral of the £0.8 million repayment to the bank originally due on 31 August 2011 falling due to Clydesdale Bank and trading in the period.

In the event that the grant is not awarded, or in the event that the grant is awarded on terms unacceptable to the bank and, irrespective of the outcome of any subsequent negotiations with Clydesdale Bank, it is unlikely that Shareholders would receive  any  return  of  value  in  respect  of  their  shareholding  in  the Company, whetherthrough a formal insolvency process,an equity refinancing (which is likely to result in a severe dilution of Shareholders' interestsin the Company) or otherwise.

If the grant is approved

On the satisfaction of all of the conditions relatingto the award of the grant describedabove by the relevant dates (and completion of the Firm Placing and Placing and Open Offer on or before 30 November 2011), the New Facilities Agreement will becomeunconditional. Taking into account the proceeds of the Firm Placing  and  Placing  and  Open  Offer  and  the  New  Facilities Agreement,  the  Group  will  have  sufficient working capital for its present requirements, that is, for at least 12 months from the date of this document.

In the event that the Firm Placing and Placing and Open Offer fails to complete then the Company will be unable  to  undertake  its  recommended  capital  expenditure  programme,  nor  will  it  have  available  cash resources to normalise its working capital position.

The  temporary  and  conditional  relaxations  and  amendments  to  the  Company's  existing  facility  structure agreed with Clydesdale Bank and announced on 5 September2011 expired on 31 October 2011, and the current temporary and conditional relaxations and amendments will expire on 30 November2011 unless the Issue and Proposals complete on or before that date (assuming that the bank has received satisfactory evidence that the RSA grant has been approved in an amount of not less than £1.6 millionby 14 November 2011, Clydesdale Bank  having  received  a  copy  of  a  formal  award  of  such  grant  in  a  form  satisfactory  to  the  bank  by 21  November  2011,  failing  which  the  relaxations  and  amendments  to  the  existing  facility  structure  will cease to have effect on the relevant date).  If the Firm Placingand Placing and Open Offer completesby 30 November2011 and Clydesdale Bank's requirements with respect to the grant are met, then the New Facilities Agreement will become unconditional.

Should the Firm Placing, Placing and Open Offer not complete (but assuming the RSA grant is awarded in an amount of at least £1.6 million, or such lesser amount as the Company and Clydesdale Bank may agree) and subject to Brewin Dolphin being satisfied with the quantum of such grant and the conditionsrelating to Clydesdale Bank's satisfaction with the quantum and terms of such grant being met by the relevant dates (as described above), then based on forecast tradingand the Company's working capitalposition at that time,  the  Directors  forecast  that  the  Company  will  exceed  its  overdraft  facility  by  £1.6  million  on  30 November  2011  when  the  current  temporary  and  conditional  relaxations  and  amendments  granted  by Clydesdale  Bank  are  due  to  expire  with  the  cause  of  this  shortfall  being  the  £0.8  million  repayment (deferred since 31 August 2011)and the quarterly loan paymentof £1.02 million(due on 30 November 2011) totalling£1.8 million falling due to Clydesdale Bank on this day.

In the event that the relevant Shareholder approvals for the Proposals are not granted on or before 30 November 2011 (being the date the current temporary conditional relaxations and amendments to the Company's banking facilitiesare due to expire),then the Company will not be able to satisfy the financialcovenants and/orcomply with the debt serviceobligations within the terms of its current bank facilities. In those circumstances, irrespective of the outcome of any subsequent negotiations  with  Clydesdale  Bank,  it  is  unlikely  that  Shareholders  would  receive  any  return  of  value  in respect  of  their  shareholdings  in  the  Company,  whether  through  a  formal  insolvency  process,  an  equity refinancing  (which  is  likely  to  result  in  a  severe  dilution  of  Shareholders'  interests  in  the  Company)  or otherwise.

The Board believes that if the Firm Placing, Placing and Open Offer complete, the strengthened capital base will provide the Group with necessarycapital to execute the proposed capital expenditure programme with a view to benefitting from improved market share  within  the  Company's  existing  market  place  and  capitalising  on  forecast  growth  due  to  structural changes in energy conservation.

Dividend policy

In the financialyear ended 31 August 2010, the Board decided not to pay a final dividend as a result of the Group's trading performance and due to the impact of the then recent furnace failure. Dividend payments have been suspended throughout 2011, largely as a result of the deteriorating trading and financial position of  the  Group,  and  the  Board  has  agreed  not  to  resume  dividend  payments  during  the  next  two  financial years. In determining the level of future dividend payments thereafter, if any, the Directors will take account of  the profitability,  cash  generation  and  underlying  growth  of  the  Group's  businesses  while  seeking  to maintain an appropriate level of dividend cover.

General Meeting

A notice of the General Meeting, to be held at 10.00 a.m., on 30 November 2011 at the offices of Brewin Dolphin Limited, 12 Smithfield Street, London, EC1A 9BD, is set out in the prospectus.  

The Proposals are conditional on, inter alia, the passing of the Resolutions at the General Meeting. Each of the Resolutions is interconditional on the other Resolutions being passed.

Importance of the Vote

The Company does not have sufficient working capitalfor its present requirements, that is, for at least 12 months from the date of this document.

The Proposals are conditional upon, inter alia,the passing of the Resolutions at the GeneralMeeting. In the event that the Firm Placing,Placing and Open Offer does not complete then the Company will be unable to undertake  its  recommended  capital  expenditure  programme,  nor  will  it  have  available  cash  resources  to normalise its working capital position.

The  previous  temporary  and  conditional  relaxations  and  amendments  to  the  Company's  existing  facility structure agreed with Clydesdale Bank and announcedon 5 September 2011 expired on 31 October2011 and,  in  contemplation  of  the  Proposals,  the  bank  subsequently  agreed  further  temporary  and  conditional relaxations  and  amendments  which  will  expire  on  30  November  2011  unless,  inter  alia,  the  Issue  and Proposals complete on or before that date.

In  the  event  that  the  relevant  Shareholder  approvals  for  the  Proposals  are  not  granted  on  or  before 30 November 2011, being the date the current relaxations to the Company's bankingfacilities are due to expire, then the Company will not be able to satisfy the financialcovenants and/or comply with the debt service obligations within the terms of its current bank facilities.

On the satisfaction of all of the conditionsrelating to the award of the grant by the relevant dates (and completion of the Firm Placing and Placing and Open Offer on or before 30 November 2011), the New Facilities Agreementwill become unconditional. Taking into  account  the  proceeds  of  the  Firm  Placing  and  Placing  and  Open  Offer  and  the  New  Facilities Agreement, the Group will have sufficient working capitalfor its present requirements, that is, for at least 12 months from the date of this document.

In the event that the Firm Placing and Placingand Open Offer fails to complete then the Company will be unable  to  undertake  its  recommended  capital  expenditure  programme,  nor  will  it  have  available  cash resources to normalise its working capital position.

The  previous  temporary  and  conditional  relaxations  and  amendments  to  the  Company's  existing  facility structure agreed with Clydesdale Bank and announcedon 5 September 2011 expired on 31 October2011, and the currenttemporary and conditional relaxations and amendments will  expire  on  30  November  2011  unless  the  Issue  and  Proposals  complete  on  or before that date (assumingthat the Clydesdale Bank has received satisfactory evidence that the RSA grant has been approved in an amount of not less than £1.6 million(or such lesser sum as  the  Company  and  Clydesdale  Bank  may  agree),  subject  to  Brewin  Dolphin  being  satisfied  with  the quantum of such grant by 14 November 2011 and Clydesdale Bank has received a copy of a formal award of such grant in a form satisfactory to the bank by 21 November 2011, failing which the relaxations and amendments to  the  existing  facility  structure  will  cease  to  have  effect  on  the  relevant  date). If  the  Firm  Placing  and Placing and Open Offer completes by 30 November 2011 and Clydesdale Bank's requirements with respect to the grant are met, then the New Facilities Agreement becomes unconditional.

Should the Firm Placing, Placing and Open Offer not complete (but assuming the RSA grant is awarded in an amount of at least £1.6 million, or such lesser amount as the Company and Clydesdale Bank may agree) and subject to Brewin Dolphin being satisfied with the quantum of such grant and the conditions relating to Clydesdale Bank's satisfaction with the quantum and terms of such grant being met by the relevant dates as described above), then based on forecast trading and the Company's working capital position at that time, the Directors forecast that the Company will exceed its overdraft facility by £1.6 million on 30 November 2011 when the current temporary and conditional relaxations to the Company's banking facilities granted by Clydesdale Bank are due to expire, with reason for the shortfall being the £0.8 million repayment (deferred since 31 August 2011) and the quarterly loan payment of £1.02 million (due on 30 November 2011) totalling £1.8 million falling due to Clydesdale Bank on that date.

In the event that the relevant Shareholder approvals for the Proposals are not granted on or before 30 November 2011 (being the date the current relaxations to the Company's banking facilities are due to expire), then the Company will not be able to satisfy the financial covenants and/or comply with the debt service obligations within the terms of its current bank facilities.

Irrespective of the outcome of any subsequent negotiations with Clydesdale Bank, it is unlikely that Shareholders would receive any return of value in respect of their shareholdings in the Company, whether through a formal insolvency process, an equity refinancing (which is likely to result in a severe dilution of Shareholders' interests in the Company) or otherwise.

The Board believes that if the Firm Placing, Placing and Open Offer complete, the strengthened capital base will provide the Group with necessary capital to execute the proposed restructuring and therefore benefit from improved market share within the Company's existing market place and capitalise on forecast growth due to structural changes in energy conservation.

For this reason, the Board recommends all shareholders to vote in favour of the Resolutions

Recommendation

The Board, who have been so advised by Brewin Dolphin, considers that the Issue and the passing of the Resolutions are in the best interests of the Company and its Shareholders as a whole.

In providing advice to the Directors, Brewin Dolphin has taken into account the commercial assessments of the Directors.

Accordingly, the Board unanimously recommends you to vote in favour of the Resolutions to be proposed at the General Meeting, as it has irrevocably undertaken to the Company to do (or as the case may be, procure) in respect of the Existing Ordinary Shares in which members of the Board or connected persons are beneficially interested, representing approximately 4.5 per cent. of the issued share capital of the Company.

Expected Timetable of Principal Events

Firm Placing, Placing and Open Offer Statistics

Definitions

"Act" the Companies Act 2006

"Admission and Disclosure Standards" the requirements contained in the publication "Admission

and Disclosure Standards" dated 6 June 2011 containing,

amongst other things, the admission requirements to be

observed by companies seeking admission to trading on the

London Stock Exchange's market for listed securities

"Admission" the admission of New Ordinary Shares to the Official List

and to trading on the London Stock Exchange's market for

listed securities becoming effective in accordance with the

Listing Rules and the Admission and Disclosure Standards

"AIM" AIM, the market of that name operated by the London Stock

Exchange

"Application Form" the application form which accompanies this document for

Qualifying non-CREST Shareholders for use in connection

with the Open Offer

"Articles" the current articles of association of the Company

"Board" the board of Directors of the Company

"Brewin Dolphin" Brewin Dolphin Limited

"Business Day" or "Business Days" day or days (excluding Saturdays, Sundays and public

holidays in England, Wales and Scotland) on which banks

are generally open for the transaction of normal banking

business in the City of London

"CERT" the Carbon Emissions Reduction Target

"certificated" or "in certificated form" not in uncertificated form (that is, not in CREST)

"Closing Price" the closing middle market quotation of an Existing Ordinary

Share as derived from the daily official list published by the

London Stock Exchange

"Clydesdale Bank" Clydesdale Bank plc

"CM Projects" CM.Project.Ing Gmbh

"Company" or "Superglass" Superglass Holdings plc

"Convertible Shares" the 14,985,748 convertible shares of 20 pence each in the capital of

the Company proposed to be allotted to Clydesdale Bank,

details of which are set out in the prospectus

"CREST member" a person who has been admitted to Euroclear as a system member (as defined in the Regulations)

"CREST" the relevant system for the paperless settlement of trades and

the holding of uncertificated securities operated by

Euroclear UK & Ireland Limited in accordance with the

Regulations

"Directors" the directors of the Company as at the date of this

document, whose names are set out in the prospectus

"Disclosure and Transparency Rules" the Disclosure Rules and Transparency Rules of the UK

Listing Authority (as amended from time to time)

"EBITA" earnings before interest, taxation and amortisation

"Enlarged Share Capital" the issued ordinary share capital of the Company following

completion of the Placing and Open Offer and Firm Placing

"Existing Ordinary Shares" the 57,938,728 existing ordinary shares of one penny each

in the capital of the Company in issue as at the date of the prospectus

"Firm Placees" any persons who have agreed or shall agree to subscribe for

Firm Placing Shares pursuant to the Firm Placing

"Firm Placing Shares" in aggregate, 37,818,196 New Ordinary Shares which the Company is proposing to allot and issue pursuant to the Firm Placing

"Firm Placing" the subscription by the Firm Placees for the Firm Placing

Shares

"FSA" Financial Services Authority

"FSMA" Financial Services and Markets Act 2000 (as amended,

replaced or re-enacted from time to time)

"General Meeting" the general meeting of the Company convened for the

purpose of passing the Resolutions to be held on

30 November 2011, including any adjournment thereof

"Group" the Company and its Subsidiaries from time to time

"Issue" the issue of New Ordinary Shares pursuant to the Placing

and Open Offer and the Firm Placing

"Issue Price" 20 pence per New Ordinary Share

"Listing Rules" the rules and regulations made by the FSA under Part VI of

FSMA

"London Stock Exchange" London Stock Exchange plc

"New Facilities Agreement" the facilities agreement entered into between the Company,

Superglass Group, Superglass Insulation and Clydesdale Bank on 7 November 2011

"New Ordinary Shares" the 47,272,745 new ordinary shares of 20 pence each in the capital of the Company, including the Placing Shares, Open Offer Shares and Firm Placing Shares

"Notice" the notice of General Meeting which forms part of this

document

"Official List" the Official List of the FSA maintained pursuant to Part VI

of the FSMA

"Open Offer Entitlement" the entitlement of a Qualifying Shareholder to apply for 62

Open Offer Shares for every 380 Existing Ordinary Share held by him on the Open Offer Record Date, on and subject to the terms of the Open Offer

"Open Offer Shares" the 9,454,549 New Ordinary Shares to be offered to Qualifying Shareholders under the Open Offer

"Open Offer" the open offer to Qualifying Shareholders, comprising an

invitation to apply for Open Offer Shares on the terms and

subject to the conditions set out in this document and, in the

case of Qualifying non-CREST Shareholders, in the

Application Form

"Open Offer Record Date" 5.00 p.m. in the UK on 2 November 2011

"Ordinary Shares" ordinary shares of one penny each in the capital of the

Company

"Overseas Shareholders" Shareholders with registered addresses in, or who are

resident or ordinarily resident in, or citizens of jurisdictions

outside, the United Kingdom

"Placing Agreement" the placing agreement dated 7 November 2011 entered

into between the Company and Brewin Dolphin relating to

the Placing and Open Offer and Firm Placing

"Placing" the conditional placing by Brewin Dolphin of the New

Ordinary Shares to be issued pursuant to the Open Offer, on

behalf of the Company on the terms and subject to the

conditions contained in the Placing Agreement

"Placing Shares" the up to 9,454,549 New Ordinary Shares to be placed under the Placing

"Post-Consolidation Ordinary Shares" the ordinary shares of 20 pence each held in the Company

following the Share Consolidation which, prior to the Share

Consolidation, were Existing Ordinary Shares

"Proposals" the proposed restructuring of the debt and share capital of

the Company through, amongst other things, (i) the Capital

Restructuring and the Share Consolidation and (ii) the Firm

Placing, Placing and Open Offer

"Prospectus Rules" the prospectus rules of the UK Listing Authority made in

accordance with section 73A of the FSMA (as amended

from time to time)

"Qualifying CREST Shareholders" Qualifying Shareholders holding Ordinary Shares in

uncertificated form in CREST

"Qualifying Non-CREST Shareholders" Qualifying Shareholders holding Ordinary Shares in

certificated from

"Qualifying Shareholders" holders of Existing Ordinary Shares on the register of

members of the Company at the Open Offer Record Date

with the exclusion (subject to certain exemptions) of persons

with a registered address or located or resident in an

Excluded Territory

"Regulations" the Uncertificated Securities Regulations 2001 (as amended

from time to time)

"Share Consolidation" the consolidation of Existing Ordinary Shares conditional on

the passing of, and otherwise in accordance with, Resolution

1 as set out in the Notice

"Shareholders" holders of Existing Ordinary Shares and, following the

Share Consolidation and Admission, holders of New

Ordinary Shares

"£" or "Sterling UK pounds sterling, the legal currency of the United Kingdom

"Subsidiaries" as defined in section 1159 of the Companies Act and

Subsidiary shall be defined accordingly

"UK Listing Authority" or "UKLA" the FSA in its capacity as the competent authority for the

purposes of Part IV of the FSMA and in the exercise of its

functions in respect of admission to the Official List

otherwise than in accordance with Part IV of the FSMA

"UK" or "United Kingdom" the United Kingdom of Great Britain and Northern Ireland

"uncertificated" or "in uncertificated form" recorded in the register as being held in uncertificated form

in CREST and title to which, by virtue of the Regulations,

may be transferred by means of CREST

Forward-looking statements

This announcement includes forward-looking statements. All statements other than statements of historical fact included within this announcement including, without limitation, those regarding Superglass' financial position, business strategy, plans and objectives of management for future operations, are forward-looking statements. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'prepares', 'anticipates', 'expects', 'intends', 'may', 'will' or 'should' or, in each case, their negative or other variations or comparable terminology. Investors should specifically consider the factors identified within this announcement which could cause actual results to differ before making an investment decision. Such forward-looking statements include known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based upon numerous assumptions as to Superglass' present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date at which they are made. Save as required by the Takeover Panel, the FSA, The London Stock Exchange or applicable law, including, without limitation, the City Code, the Prospectus Rules, the Disclosure and Transparency Rules and the Listing Rules, Superglass expressly disclaims any responsibility to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.