Subscription to raise £911,927

SerVision PLC

("SerVision" or the "Company")

Subscription to raise £911,927

SerVision (AIM: SEV), the AIM quoted developer and manufacturer of digital security systems, is pleased to announce that it has conditionally raised £911,927 (before expenses) through the subscription for 17,537,059 new ordinary shares of 1p each in the Company (the "Subscription Shares") with existing investors and new shareholders, at a price of 5.2 pence per Subscription Share (the "Subscription"). The net proceeds of the Subscription will be used to satisfy the Company's existing order book and for general working capital purposes.

A total of £513,836, representing the issue of 9,881,466 Subscription Shares (the "Firm Subscription Shares"), has been raised within the Company's existing share authorities put in place at the Company's annual general meeting held on 30 July 2014. The issue of the Firm Subscription Shares is conditional only upon admission of the Firm Subscription Shares to trading on AIM ("First Admission"). Application will be made shortly for the Firm Subscription Shares, which will be issued paid up and rank pari passu with the existing ordinary shares of 1 pence each in the capital of the Company, to be admitted to trading on AIM. It is expected that First Admission will take place on or around 29 May 2015.

The Subscription balance of £398,091 (the "Conditional Subscription Amount"), representing the issue of 7,655,593 Subscription Shares to Gabriel Sassoon (the "Conditional Subscription Shares"), is conditional upon shareholder approval through the passing of certain resolutions to be proposed at a general meeting of the Company to be convened and admission of the Conditional Subscription Shares to trading on AIM ("Second Admission"). Mr Sassoon is an existing shareholder of SerVision and is beneficially interested in 8.25% of the current issued share capital of SerVision (prior to the issue of the Subscription Shares). The Company will despatch in due course a circular to shareholders of SerVision convening a general meeting of the Company. The Conditional Subscription Amount has been received by the Company. Should shareholder approval of the resolutions at the general meeting not be forthcoming, the Conditional Subscription Amount will be returned to Gabriel Sassoon.

The Subscription price of 5.2 pence represents a 26.1 per cent. premium to the Company's closing mid market price of 4.125 pence on 21 May 2015, being the latest practicable business day prior to this announcement. The Subscription Shares will represent 19.88 per cent. of the enlarged issued share capital of the Company.

Following First Admission the total enlarged issued share capital of SerVision will be 80,572,429 ordinary shares of 1p each. Until the Second Admission, this figure may be used by shareholders 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 FCA's Disclosure and Transparency Rules.

Following completion of the Subscription there will be 88,228,022 ordinary shares of 1 pence each in the Company in issue.

Grant of options

The Company has also agreed to grant the following options to the following persons:

- Gabriel Sassoon, the largest investor in the Subscription, has conditionally been granted options over 6,346,154 new ordinary shares in the Company, exercisable at a price of 5.2 pence per share (equivalent to the Subscription price) anytime between the date of the general meeting, which is to be convened shortly, and 1 November 2015. The grant of the options is subject to approval by shareholders at a forthcoming general meeting and Mr Sassoon and the Company entering into an option agreement. Any future exercise of the options will be at the sole discretion of Mr Sassoon and will also be conditional on the Company having sufficient share authorities in place to enable the exercise of the options; and

- Eliyahu Greineman, an investor in the Subscription and a procurer of certain other subscribers in the Subscription, has conditionally been granted options over 6,346,154 new ordinary shares in the Company, exercisable at a price of 10.4 pence per share (equivalent to a 100% premium to the Subscription price) anytime between the date of the general meeting, which is to be convened shortly, and 1 May 2017. The grant of the options is subject to approval by shareholders at a forthcoming general meeting and Mr Greineman and the Company entering into an option agreement. Any future exercise of the options will be at the sole discretion of Mr Greineman and will also be conditional on the Company having sufficient share authorities in place to enable the exercise of the options.

Gidon Tahan, Chairman and CEO of SerVision, commented, "I am pleased to raise further funding from a small group of existing shareholders and new investors at a premium to the current prevailing share price. This funding will provide the company with further working capital to fulfil its order book. I am encouraged by the existing pipeline and the prospects for 2015, and beyond."

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SerVision is a pioneer in the field of security communications technology and a leading developer and manufacturer of fully integrated video recording and transmission systems for homeland security and transportation applications. The Company's core technology is proprietary video compression which is optimised for streaming real-time video over any type of cellular or narrowband network.