Issue of New Equity

LIGHTWAVERF PLC

 (AIM: LWRF)

7 July 2014

Issue of New Equity

LightwaveRF plc ("LightwaveRF Plc" "the Company"), the creator of the LightwaveRF Connected Home Platform and products for the Internet of Things enabling households and businesses to remotely operate and control household applications including lighting, heating and security using smartphones, tablets, PC and MAC applications, today announces a placing of 1,145,714 New Ordinary Shares at a price of 35 pence per share to raise £401,000 before expenses ("the Placing").

Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. It is expected that Admission will become effective at 8.00 a.m. on 9 July 2014.

Background to and reasons for the Placing

The Company has achieved significant progress during the first half of the year with much improved sales and profitability. This is against a background of greater awareness of the Internet of Things and particularly the Connected Home. The business is continuing to develop its markets as evidenced by the recent announcement of a global distribution agreement with Neonlite.

Historically design and development work has been focused through our partnership supplier. However over the past six months the Company has shifted this work to its newly created design and development team based in the UK under the direction of founder John Shermer and supported by the new appointment to the Operating Board of Chris Skelton as Technical Director.

The fundraising will be used to accelerate product development capability with the recruitment of software and hardware design resource to capture Intellectual Property and improve speed to market. In future all design work will be completed in the UK giving the business the opportunity to source product supply more broadly.

Barry Gamble, Non-executive director is acquiring £71,000 of New Ordinary Shares taking his total holding up to 396,190 shares representing 3.26% of the enlarged share capital. His participation in the Placing constitutes a related party transaction in accordance with AIM Rule 13. The Independent Directors being the Directors other than Barry Gamble, having consulted with the Company's nominated adviser WH Ireland, consider the terms of the transaction with Barry Gamble to be fair and reasonable insofar as its shareholders are concerned.

The funding is expected to deliver considerable further progress for the LightwaveRF Technology Platform during the next 12 months.

Commenting Mike Lord Chairman and CEO said:

"The Connected Home market place is starting to develop rapidly and we want to ensure that we accelerate our product development and take the platform we have created to the next level. This funding allows us to add the right resources at what we believe is a very exciting time for the  business."