Grant of Options

20 May 2010

Kellan Group PLC

("Kellan" or the "Company")

Grant of Options

The Company is pleased to announce that further to the announcement of 18 May 2010, the Directors have today approved the grant of options to participating employees and certain Directors under the Company's approved Save As You Earn share option scheme ("SAYE Scheme").

Ross Eades, Chief Executive Officer of Kellan, has been granted options over 148,645 Ordinary Shares under the SAYE Scheme. The total number of share options held by Mr. Eades following this grant is 1,148,645. Mr. Eades is also interested in 700,000 Ordinary Shares representing 0.80 per cent. of the issued ordinary share capital of the Company.

The Directors also approved the grant of options over 98,709 Ordinary Shares to Will Coker, Chief Financial Officer of Kellan, under the SAYE Scheme. The total number of share options held by Mr. Coker following this grant is 407,419. Mr. Coker is also interested in 66,000 Ordinary Shares representing 0.08 per cent. of the issued ordinary share capital of the Company.

Note:

·; All employees of the Company were invited to participate in the SAYE Scheme on 12 April 2010 following publication of the Company's preliminary results for the period ended 31 December 2009. 

·; The SAYE Scheme was oversubscribed with subscriptions being received from a total of 47 employees. Allocation of share options has been applied on the basis of a pre-determined scaling down process.

·; The options, which will vest after three years from grant, will be exercisable (in whole or in part) for a period of six months after the third anniversary of grant, at a price of 3.1 pence per share, a 20 per cent. discount to the closing middle market price on 9 April 2010, the last trading day before the invitation to participate was sent out.

·; The SAYE Scheme permits the granting of further options up to 12 March 2019, the tenth anniversary of the date of its adoption by the Board.

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