Espresso Group Limited

Avanti Capital plc ("Avanti" or the "Company")

Espresso Group Limited ("Espresso")

Over the past few months, the board of Espresso has been considering the future prospects of the company. Espresso has continued to trade strongly in its core UK market, but with the opportunity to expand the brand both domestically and internationally, and the capital that will require, consideration has been given to finding a new investor that shares this vision and has access to any capital required to allow Espresso to grow when opportunities arise. In addition, the Espresso board is aware that shareholders have been investors for a substantial period and an acquisition will provide the opportunity to realise such investments. 

As such, a competitive auction process was started in an attempt to secure the most attractive exit available for Espresso shareholders. As part of this process, a significant number of both trade buyers and institutional investors were contacted and offers obtained from a number of them. Through this process the Espresso board received an offer from a third party bidder that, having considered the various alternatives, it believed will provide Espresso with an attractive opportunity to continue its expansion and for shareholders in the company to realise their investment.

The deal completed on 1 November 2013. While the terms of the transaction are undisclosed and assuming that no warranty claims are successful, the investment in Espresso held by Avanti Capital plc would realise payments of nearly £340,000 (net of costs) over two years. Approximately 80% of this amount would be payable upon completion.

As at 30 June 2013, the carrying value of the company's investment in Espresso was £0.4 million (2012 - £0.4 million) equating to 4 pence per share (2012 - 4 pence per share).

Contact:

Avanti Capital plc 020 7299 1459

Richard Kleiner

Canaccord Genuity Limited 020 7523 8000

Bruce Garrow