Funding Update

VPhase plc

("VPhase" or the "Company" or the "Group")

Funding Update

Further to the announcement made on 5 June 2013 and the suspension of the Company's shares on 20 June 2013, VPhase announces that, despite extensive attempts to secure further funding, it has received insufficient demand to raise equity capital through a non pre-emptive placing with institutional investors. The Board continues to pursue options to preserve the value of the Company, including raising funds by way of debt or equity and the sale of the business or its assets. However, there can be no certainty at this stage that any of these options will materialise and, if they do not, the Company currently only has sufficient funds to operate for a few weeks at most. The Board therefore continues to assess its ability to continue trading and in the absence of further funding it will take steps to wind up the Company. Shareholders should be aware that this may result in little or no value being attributable to the shares of the Company. A further announcement will be made in due course.

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Notes to Editors:

About VPhase

VPhase plc is an energy efficiency technology company that launched the first domestic voltage optimisation device in the UK. The VPhase VX1 lowers the voltage in the home, reducing the energy consumption of many electrical appliances, saving money and reducing carbon emissions.

The VPhase device:

- has been proven to save up to 12% off home electricity bills;

- is easily installed by a qualified electrician;

- does not require a change in lifestyle or electricity supplier;

- is low cost, with a typical payback of under 5 years;

- has a 5 year manufacturer's warranty and an expected lifespan in excess of 25 years;

- can save up to 4.5 tonnes of CO2 over its 25+ year life;

- attaches to the consumer unit (fuse box) and regulates the voltage to 220 volts;

- is the next most affordable and effective green option for the home, after insulation.

The VPhase VX1 has been extensively tested with independent verification supporting the saving claims, including an Ofgem approved CERT demonstration action, social housing trials and a range of independent consumer trials. Many electrical appliances in the home will benefit from having their voltage optimised and reduced, including fridges, freezers, central heating pumps, televisions, washing machines, vacuum cleaners, etc. - and even 'energy-saving' light bulbs. As well as reducing the homes electricity bill, there is evidence that the life of electrical appliances can be extended by the use of this product; light bulbs in particular, have demonstrated at least a doubling of operating life when on a voltage optimised circuit.

Web: www.vphase.co.uk

Facebook: http://on.fb.me/cUBnek 

Twitter: www.twitter.com/vphase 

LinkedIn: http://linkd.in/qqbyYS 

YouTube: www.youtube.com/vphase