Issue of additional Convertible Loan Notes

23 September 2015

EU Supply plc

("EU Supply", the "Company" or the "Group")

ISSUE OF ADDITIONAL CONVERTIBLE LOAN NOTES

Further to its announcement of 27 August 2015, EU Supply plc (LSE AIM: EUSP), the e-procurement software provider, announces that it has raised a further £708,000 through the issue of additional Convertible Loan Notes ("Additional Convertible Loan Notes") to institutional and other investors.

The Additional Convertible Loan Notes represent a further issuance of the loan notes constituted by a loan note instrument dated 27 August 2015, the first tranche of which was issued on 27 August 2015 ("First Tranche"). The Convertible Loan Notes mature on 27 August 2020 and carry a coupon of 10% payable quarterly in arrears. As the Additional Convertible Loan Notes were issued prior to 30 September 2015, the conversion price is at a 30 per cent. premium to 9p (being 11.7p).

Certain of the Directors have subscribed for Additional Convertible Loan Notes as follows: -

The Convertible Loan Notes shall be freely transferable. It is intended that the Convertible Loan Notes will be listed on the Channel Islands Stock Exchange as soon as practicable and in any event before the first interest payment date (being 30 September 2015). A further announcement regarding the listing of the Convertible Loan Notes on the Channel Islands Stock Exchange will be made in due course. 

Proceeds of the Additional Convertible Loan Notes will be applied towards working capital purposes, and in particular to take advantage of market opportunities in new and existing markets and to roll-out the Tender Lite and Business Alerts services to additional markets.

Defined terms in this announcement have the same meaning as in the Company's announcement dated 27 August 2015.

A copy of this announcement is available at www.eu-supply.com.

Notes to Editors

EU Supply is the UK holding company of the EU Supply Group, a Sweden-based e-commerce business, which has an established, market-leading, multilingual e-procurement platform for esourcing, e-tendering and contract management, tailored for the highly regulated European public sector market.

Since 2006, the Group has invested heavily in employing specialist programmers to add functionality, legal compliance as required and security features to its Complete Tender Management™ ("CTM™") platform to ensure that the Group is ideally placed to secure new contracts with EU Member States and their Contracting Authorities. The platform is available in 16 different languages.

The Directors believe that the Group's CTM™ platform is one of the easiest to use and most functionally advanced solutions available in the market. The CTM™ platform is used by over 7,000 European public sector bodies in 8 EU/EEC Member States and has National Procurement System status in four Member States (the UK, Ireland, Norway and Lithuania).

The Company's shares were admitted to trading on AIM in November 2013. In August 2015, the Company raised a total of £1.353m (before expenses) through a placing of new shares and the issue of the first tranche of Convertible Loan Notes to institutional and other investors.