Surrender and grant of Share Options

Theo Fennell PLC

("Theo Fennell" or the "Company")

Surrender and grant of Share Options

Theo Fennell PLC announces that on 10 October 2011 the Company agreed to the surrender of a total of 1,800,000 options over ordinary shares in the Company (the "Original Options") and to the grant of replacement options over a total of 1,800,000 ordinary shares in the Company (the "Replacement Options").

The Original Options were granted to directors and key employees between 1 September 2002 and 4 August 2010 pursuant to the Company's existing share option schemes. The Original Options have exercise prices of between 35 and 40p, compared with a mid market price at close on the day preceding this announcement of 18.5p. 

The Original Options surrendered by directors are as follows:

The Replacement Options issued to directors are as follows:

The Replacement Options vest over a two year period, and may be exercised up to the tenth anniversary of the date of grant.

The surrender of the Original Options and the grant of the Replacement Options (the "Transaction") is deemed a related party transaction under the AIM Rules for Companies. Rupert Hambro and Roger Pedder, being the independent directors, having consulted with Seymour Pierce, as the Company's nominated adviser, consider that the terms of the Transaction are fair and reasonable in so far as the Company's shareholders are concerned.

The Company also announces that it has granted a further 60,000 options to employees exercisable at 22p which vest over a three year period, and may be exercised up to the tenth anniversary of the date of grant.