Acquisition

3rd February 2010

BETTER CAPITAL LIMITED

ACQUISITION

Better Capital Limited (the "Company") is pleased to announce that BECAP Fund LP ("BECAP"), the Guernsey limited partnership into which the Company invests as a feeder fund, has completed its first acquisition.

The Company has today been informed of the acquisition of the entire issued share capital and debt liabilities of Gardner Group Limited and its associated entities ("Gardner Group"), by two special purpose vehicles established by BECAP.

Gardner Group is a leading supplier to the aerospace industry in Europe and provides a range of high complexity components to aero structure and engine manufacturers. Based in Ilkeston in Derbyshire, the group has six UK sites and one in Poland.

Nick Sanders, a managing member of Better Capital LLP (which provides consultancy services to BECAP's general partner) and former Vice President Operations of Lucas Aerospace, will join the Gardner Group board as Non-Executive Chairman.

Gardner Group revenues for the year to 31 August 2008 were £66.2 million, with an operating profit of £7.3 million. Since the first quarter of 2009 Gardner Group has experienced major declines in demand for its business jet and truck transmission products - both important markets for the business. This decline led to the need to restructure the business.

At 31 August 2008 Gardner Group had net assets of (£29.3) million. However, after its acquisition and restructure, Gardner Group will have minimal third party debt.

BECAP anticipates injecting a total of £20 million to finance the transaction and fund future growth, of which £15 million has been released to date.

Enquiries:

Better Capital Limited +44 (0)14 8171 6000

Mark Huntley (Director)

Laurence McNairn (Administrator and Company Secretary)

Better Capital LLP +44 (0)20 7812 7240

Mark Aldridge (CEO)

Numis Securities Limited +44 (0)20 7260 1000

Nominated Adviser: Simon Blank / Oliver Hardy

Corporate Broker: Nathan Brown