Update on litigation

Formation Group plc (the "Company")

Update on Litigation

The Company has been in dispute since 2005 with Gestifute, a European football agency company, following a dispute over fees owed in connection with transfers of football players to English football clubs.

The Company announces that both parties have reached full and final agreement in relation to this litigation. Pursuant to the agreement, Formation Group Plc will receive a net amount, after deducting costs associated with the case, of €205,000.

Enquiries:

Formation Group Plc:

David Kennedy; Chief Executive Officer - 020 7920 7590

NOMAD to Formation Group Plc:

Zeus Capital Limited - Ross Andrews / Tom Rowley - 0161 831 1512