Proposed Acquisition and Suspension of Listing

30 June 2016

FLYING BRANDS LIMITED

("Flying Brands" or the "Company")

Proposed Acquisition and Suspension of Listing

Further to the announcement of the Financial Conduct Authority noting the temporary suspension of the Company's listing from the Official List pending an announcement, Flying Brands Limited (LSE:FBDU) confirms that it has commenced due diligence and is in negotiations in connection with the purchase of the entire issued share capital of a medical technology business, Stone Checker Software Limited ("the Target"). The proposed Transaction is conditional on the completion of legal and financial due diligence on the Target and the execution of definitive legal documentation.

The Transaction, if completed, would constitute a reverse takeover under the Listing Rules. As the Company is currently unable to provide full disclosure under Listing Rule 5.6.15 in relation to the Target, it has requested from the UKLA a suspension of its listing with immediate effect.

No binding agreement has been reached and, accordingly, the directors of Flying Brands cannot guarantee its completion or provide any indication of a likely completion date.

Further announcements will be made in due course.

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