Surrender of NED options

18 May 2010

Kellan Group PLC

("Kellan" or the "Company")

Surrender of NED Options

The Company announces that yesterday three Non Executive Directors of Kellan agreed to surrender in full their existing entitlement to options granted to them under the Company's 2008 unapproved NED share option scheme ("NED Scheme"). The purpose of this is to create sufficient option headroom to enable a second tranche of options to be granted to all participating employees pursuant to the Company's approved Save As You Earn share option scheme ("SAYE Scheme").

Tony Reeves, Co-Chairman of the Company waived his entitlement to options for the purchase of 1,741,727 Ordinary Shares of 2p each ("Ordinary Shares") granted under the NED Scheme. Mr. Reeves retains a beneficial interest in 13,047,251 Ordinary Shares representing 14.98 percent of the issued share capital.

Furthermore, John Bowmer, Co-Chairman of the Company also waived his entitlement to options for the purchase of 1,741,727 Ordinary Shares granted under the NED Scheme. Mr. Bowmer retains a beneficial interest in 13,047,251 Ordinary Shares representing 14.98 percent of the issued share capital.

Additionally Michael Jackson, Non Executive Director of the Company waived his entitlement to options for the purchase of 870,863 Ordinary Shares granted under the NED Scheme. Mr. Jackson retains an interest in 2,117,482 ordinary shares of 2p representing 2.43 percent of the issued share capital.

The Company intends to grant the options to participating employees under the SAYE scheme ahead of the closing date on 20th May 2010. A further announcement will be made in due course. 

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