Disposal

MXC Capital Limited

("MXC" or the "Company")

Disposal of Calyx Managed Services Limited ("Calyx") for cash

MXC is pleased to announce that it has entered into a conditional agreement to sell Calyx to Redcentric plc ("Redcentric").

Redcentric will acquire the entire issued share capital of Calyx for a consideration of £12 million payable in cash on completion (subject to an adjustment for restructuring costs). The businesses of Calyx currently consist of IT managed services and professional and infrastructure services. For the year ended 31 December 2014, these businesses generated a turnover of £9.1 million and a gross profit of £5.1 million. Gross assets of the remaining Calyx business as at 28 February 2015 were £4.3 million. The sale is conditional on the completion of the disposals of the Break Fix and Carrier Services businesses, which are subject to the completion of the ongoing TUPE consultation. Completion is expected to occur on or around 13 April 2015.

MXC acquired Calyx and subsequently carried out a strategic review which resulted in significant restructuring. As part of the restructuring, it was announced on 24 March 2015 that Calyx had entered into agreements to divest its Break Fix and Carrier Services businesses for an aggregate consideration of £5.55 million.

The net return to MXC from its investment in Calyx following the various disposals and after restructuring costs and professional advisory fees is expected to be £5.3 million.

Marc Young, CEO of MXC, said "Following MXC's acquisition of Calyx, a strategic review and restructuring of its businesses was carried out. The subsequent disposals of the Calyx businesses have been to industry buyers where we expect they will thrive. We are delighted to have concluded this series of transactions to the benefit of each acquirer as well as to the benefit of MXC."

MXC Capital Limited

Marc Young

+44(0)20 7965 8149

Zeus Capital Limited (Nominated adviser and broker)

Nick How/John Depasquale/John Treacy

+44 (0)20 7533 7727

Alma PR

Josh Royston / Hilary Buchanan

+44 (0)7780 901979/+44 (0) 7515 805218

About MXC Capital

MXC is a specialist merchant bank with a track record of investing in and advising companies in the TMT sector. We bring together a deep knowledge of technology, first-hand experience of managing companies in the sector, an ability to make meaningful investments and a highly experienced corporate advisory team in support, all of which we combine to grow shareholder value.