Statement re Issue of Equity

4 March 2010

Baylon Holdings Limited

("Baylon" or "the Company")

Statement re Issue of Equity

Further to the announcement made earlier today by Baylon, the Company hereby announces that due to the rounding down of fractional entitlements, the number of new ordinary shares of no par value (the "New Ordinary Shares") expected to be admitted to trading at 8 a.m. on Friday 5 March 2010 will be 394,282,016 and not 394,282,040 as previously announced.

Total Voting Rights

Following the admission of the New Ordinary Shares to AIM, the Company's total issued share capital and total voting rights will consist of 540,582,803 ordinary shares of no par value. The Company will not hold any ordinary shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Company's articles of association, which incorporate the relevant provisions of the Financial Service Authority's Disclosure and Transparency Rules.

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