Result of General Meeting and Funding Update

27 February 2012

Cosalt plc

("Cosalt" or "the Company")

Result of General Meeting and Funding Update

At a general meeting of Cosalt plc, held earlier today, shareholders voted against both resolutions as set out in the notice of general meeting of the Company dated 9 February 2012 (the "Resolutions"), as a consequence the Cosalt will continue as a publicly listed company.

The decision was reached by a poll at the meeting and the result of the poll for each resolution was as follows:

Resolution 1: a total of 227,910, 801 votes (representing 73.07% of total votes cast) were lodged in favour of the Resolution, with 83,976,313 votes lodged against (26.93% of total votes cast). A total of 8,559 votes cast were withheld.

Resolution 2: a total of 228,128,800 votes (representing 73.14% of total votes cast) were lodged in favour of the Resolution, with 83,764,043 votes lodged against (26.86% of total votes cast). A total of 2,830 votes cast were withheld.

A copy of the Resolutions will be submitted to the National Storage Mechanism and will shortly be available for viewing online at the following web-site address:

http://www.hemscott.com/nsm.do

Following this vote by shareholders, the Company will consider its options and the actions needed to support the continued listing. The Company's net debt position as at 9 February 2012 was approximately £18.7 million. The Company requires further funding to meet working capital requirements in the short term and is in discussions with potential providers. A further update will be made in due course.

David Ross, Chairman of Cosalt, said, "Given the current position of the business, the Board and I believe that the Company would be better off as a private enterprise without the associated high costs of being a listed company. However, the decision from today's general meeting means the Company will continue to be listed and as a Board we will plan accordingly."

Enquiries: 

Cardew Group Tel: +44 (0) 207 930 0777

Tim Robertson / Sophie Leigh Pemberton