Increase to Express Gifts' Securitisation Facility

15 January 2014

Findel PLC ("Findel" or "the Group")

INCREASE TO EXPRESS GIFTS' SECURITISATION FACILITY

Findel PLC, the UK Home Shopping and Education business, is pleased to announce an increase in the Express Gifts' securitisation facility from £105m to £130m, supporting the ongoing growth of Express Gifts' business.

There has been no change to the Group's revolving credit facilities ('core net debt') and this therefore represents an increase in the total borrowing facilities available to the group. The increased scale of the securitisation facility will provide a more appropriate source of funds to support future growth in Express Gifts, and will allow the Group's core net debt to reduce at a faster rate.

The Group's total debt at the end of December 2013 was £224.3m, a decrease of £19.8m since December 2012, of which core net debt was £119.3m, also £19.8m lower than last year. Had the increase to the securitisation facility been in place at the end of December (which is a seasonal high-point for the receivables book), core net debt would have been £39.5m lower than last year at £99.6m, although total net debt would not have been affected further. There are no other changes to the Group's debt facilities which all mature in March 2016.

Tim Kowalski, Group Finance Director, commented, "Express Gifts, our largest business, has delivered strong year-on-year growth throughout our turnaround, underpinning the recovery of the Group. This increase in the securitisation facility provides a more appropriate source of funding for Express Gifts to continue this growth. This change reflects continuing progress in restoring our lenders' confidence in the Group's financial position. We are grateful for the ongoing support from HSBC and our other lenders."

As previously announced, a full update on trading will be provided in an Interim Management Statement to be released at 7am on Wednesday 22nd January 2014.

Enquiries

Findel PLC 0161 303 3465

Roger Siddle, Group Chief Executive

Tim Kowalski, Group Finance Director

Tulchan Communications 020 7353 4200

Stephen Malthouse

Susanna Voyle

Michelle Clarke

Notes to Editors

By way of pro forma illustration, had this increase been in place at the end of December 2013, which is a seasonal high-point for the receivables book, then the Group's net debt - whilst unchanged in total - would have been constructed as follows:

The Group's activities are focused in four main operating segments, together with a small overseas sourcing operation:

· Express Gifts - one of the largest direct mail order businesses in the UK;

· the Education Supplies Division - one of the largest independent suppliers of resources and equipment (excluding information technology and publishing) to schools in the UK;

· Kleeneze - a leading network marketing company in the UK and the Republic of Ireland; and

· Kitbag - a leading retailer of sports merchandise.