New Acquisition Funding

Progility plc

("Progility" or "the Company" or "the Group")

New Acquisition Funding

Progility plc (AIM: PGY), the project management services group, is pleased to announce that its largest shareholder has indicated that it is prepared to support the Group's acquisition strategy by making up to £30 million of additional funding available to the Company.

Over the past 18 months, under the new senior management team, led by Wayne Bos, the Company has acquired four businesses extending the Group's project management services offering and more than doubling the size of the business.

The team has a proven track record of developing companies both organically and by acquisition. In particular Wayne Bos, Executive Chairman, has been behind the creation, development and the sale of a number of publicly listed companies in Australia and the USA. Most notably, over the three years he was Chief Executive, Sausage Software, an Australian public company, peaked at over A$2 billion in market capitalisation.

Today's announcement confirms the intentions of the Company's largest shareholder Praxis Trustees Limited, as trustees of the DNY Trust, a family trust of which Wayne Bos is a discretionary beneficiary, to support Progility by making up to £30m available on commercial terms to help fund the acquisition of appropriate new businesses which will complement the Group's existing activities or provide an established presence in new industry verticals where the Group's skills and services can be profitably applied.

Wayne Bos commented, "Our objective is to build a substantially larger and more profitable business. We are actively looking to acquire proven businesses which will make material additions to the Group. By combining the funding support from Praxis with other potential funding sources, I believe we are now in a position to consider making acquisitions potentially up to a collective value of £100 million."

Notes for Editors:

Wayne Bos

Wayne joined Progility as Executive Chairman on 21 August 2012. He has over 20 years' experience managing and investing in business over a wide range of sectors, with particular expertise in the software and technology sector.

Mr Bos was Chief Executive of Sausage Software, an Australian public company. Under his leadership, Sausage grew from a single product company with 35 people and revenues of $5 million, to an eBusiness solutions house with over 1500 people and revenues of more than $150 million. Sausage Software, with wholly owned subsidiaries in the UK, USA and Asia, became Australia's fastest growing company as it grew to a market capitalization of more than $2 billion during the late 1990s and early 2000s.

In 2000 Mr. Bos worked closely with the management team of Uniqema, a division of Imperial Chemical Industries, to complete the acquisition of one of its business units which was subsequently successfully listed on the Australian Stock Exchange.

In early 2006 Mr Bos became President and CEO of Natrol, a Nasdaq listed Nutraceutical company, (then traded at around US$2.28 per share) which was sold in late 2007 to Plethico, an Indian public company, for US$4.40 per share.

In the private company market, Mr Bos was appointed Chairman of Ansett Aviation Training in 2004 as part of its rescue from the bankrupt Ansett Australia. After growing the business into the largest independent aviation training facility in the southern hemisphere, Ansett Aviation Training was successfully sold to a consortium led by an Australian private equity house for an undisclosed amount in June 2012.

Group Description

Progility plc is the holding company of a project management services group specialising in people, processes, training and systems integration. The Group has four divisions: Technology Solutions, Training, Consulting and Recruitment.

Technology Solutions

The technology solutions division, Progility Technologies, operates a communication systems integration business that designs, implements and maintains solutions for medium and large enterprises with a focus on the rail, port, oil and gas, power, water and healthcare industries in Australia and on the mining industry globally.

The business, which was acquired in October 2013, is headquartered in Melbourne, Australia, and has offices in Castlemaine, Perth, Sydney, Latrobe Valley, and Brisbane.

It has three operating divisions: Communications Australia, focuses on communications systems integration, designs voice and IP communications solutions for specific customers' operating environments and is a major provider of enterprise based Siemens unified communication systems in Australia; CA Bearcom, Australia's largest distributor of two-way radio communications products, primarily supplied by Motorola Australasia; and Minerals & Energy Technologies, which designs, implements and manages an array of integrated communications solutions for specific mining, oil and gas, rail and port applications.

Training

The training division comprises ILX Group, which provides a blend of on-line learning, games and simulations, traditional classroom training, practical workshops and coaching. ILX delivers training in the UK Cabinet Office's best management practice products, primarily in PRINCE2, MSP and ITIL.

Consulting

The consulting division comprises Obrar in the UK and ILX Consulting in Australia. Obrar is a consulting and project management services company, focused on multimedia contact centres, corporate technology infrastructure and associated operational change, with extensive experience in delivering contact centre outsourcing on a global basis. ILX Consulting, located in Sydney, is an organisational improvement and project management services company, specialising in information technology, service and supply chain improvement and overall project and programme management.

Recruitment

The recruitment division comprises TFPL and Sue Hill Recruitment. TFPL is a recruitment, training and consulting business specialising in the knowledge, information and data management industries, which was acquired in July 2013. TFPL provides executive search, managed services and the placement of permanent, interim and contract personnel into the public and private sectors. Sue Hill Recruitment, which was founded in 1997, is a specialist employment agency to the UK information, market research, insight and analysis sectors and was acquired in November 2013.