Further investment in Rapid Action Packaging Ltd

Further investment in Rapid Action Packaging Limited

Ludgate Environmental Fund Limited ("LEF" or the "Fund"), announces that it has invested a further £3.5 million in Rapid Action Packaging Limited ("RAP"); £1.0 million in the form of ordinary shares and £2.5 million in 12% convertible loan notes with a term date of April 2013.

Established in 1997, RAP specialises in the design, manufacture and supply of innovative, cost effective and environmentally responsible packaging systems particularly for the "food on the move" marketplace. Its customer list encompasses most of the UK's large supermarkets and some of the world's leading fast food companies. 

RAP is experiencing strong customer demand for both its existing packaging systems and recently launched, patent protected, products. The LEF funds will be used to purchase new capital equipment needed to increase output to meet this demand and to repay a working capital facility provided by LEF which is due on 22 June 2011. LEF's total investment in RAP following this will be £7.5 million.

Graham Williams, CEO of RAP, said: "We are delighted to have received this further investment from Ludgate Environmental Fund which will to allow us to respond to the growing customer demand for our products."

About Ludgate Environmental Fund:

LEF invests in a diverse portfolio of late stage emerging companies in the European cleantech sector. Actively managing its holdings, the Fund invests growth capital with a focus on waste and recycling; renewables; energy efficiency and water.

LEF was launched in August 2007 and has assets under management of approximately £58 million. The Fund is a Jersey domiciled closed-ended investment company, quoted on AIM under the symbols LEF.L for the shares and LEFW.L for the warrants.

www.ludgateenvironmental.com

For further information contact:

Ludgate Environmental Fund:

Chairman, John Shakeshaft +44 (0)1534 609 462   

Ludgate Investments Limited:

Nick Curtis +44 (0)20 7621 5770

NOMAD - PricewaterhouseCoopers LLP:

Melville Trimble +44 (0)20 7213 8898

Broker - Matrix Corporate Capital LLP:

Paul Fincham +44 (0)20 3206 7175