New Loan Facility

1 July 2014

Progility plc

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

Redeemable Loan Stock Facility

Progility plc (AIM: PGY), the project management services group, is pleased to announce that, through a wholly owned special purpose vehicle, Progility Finco Limited, it has today created up to £50 million of redeemable loan stock ("Loan Stock") which the Group intends to list on the Channel Islands Stock Exchange.

The Loan Stock is intended to provide the Group with a new and flexible mechanism to raise funds to support its growth strategy.

Wayne Bos, Executive Chairman of Progility, commented "Our objective is to build a substantially larger and more profitable business. In the immediate future we are looking to continue to grow our existing operations and to acquire businesses which represent material additions to the Group. This new facility will provide us with a mechanism to access additional funding sources in pursuit of our growth strategy which we will employ as the occasion demands alongside the funding sources of equity and bank debt."

The Loan Stock will carry interest at a fixed rate of 12% per annum and will be unsecured. Interest payments on any Loan Stock issued before 31 December 2014 will be due on that day and thereafter interest will be payable quarterly in arrear The Loan Stock will be repayable in full on the fifth anniversary of issue but may be prepaid by Progility at any time without penalty. Any Notes repaid will be available for reissue until 6 months before the Final Maturity of the Loan Stock.

No Loan Stock has yet been issued and the Board will consider issuing Loan Stock to investors in connection with specific transactions.

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.