Update Regarding Further Funding

3 June 2015

Arria NLG plc

("Arria NLG" or the "Company")

Update Regarding Further Funding

The Board of Arria NLG (AIM: NLG), a leader in the development and deployment of Natural Language Generation ("NLG") technologies, is pleased to provide an update to the announcement on 30 April 2015, in which Arria NLG stated its intention to seek further funding, and report that positive progress has been made in respect of securing such funding.

The Board of Arria NLG anticipates that the funding will be in the form of convertible loan notes which will convert in to new ordinary shares at a substantial premium to the current share price. In addition, the Board anticipates that the subscribers for the convertible loan notes will be issued with warrants to subscribe for new shares in the Company, again at a premium to the current share price.

The Company expects to be in a position to make a full announcement about the finalisation of the funding arrangements in the next couple of weeks.

The Board of Arria NLG remains confident in the potential for the Arria NLG technology. This confidence is borne out by continuing success in winning new clients and Arria NLG has added new clients at an average pace of one new client per month in the period from August 2014 to the end of April 2015.

In May 2015 Arria NLG announced a further two new client contracts for the use of its NLG technology:

· a development and licensing agreement with MeteoGroup UK Limited ("MeteoGroup") to develop a weather report module for two regions in Europe: one for a region in the UK in English and one for a region in Germany in German. MeteoGroup is one of the world's leading global full-service B2B weather solutions businesses with over 400 employees (including 150 meteorologists) operating in 15 countries around the globe; and

· a paid for proof of concept pilot agreement with the UK member of a global financial services group.

Arria NLG has also continued to advance its technology partnership with the IBM Watson Group. On 5 May 2015, Arria NLG was one of twenty-one technology partnerships featured by IBM at their IBM World of Watson exposition in New York.

Taken together, these developments reinforce the Board's view of the robust nature of the Company's core NLG product set and demonstrate the ability of Arria NLG to meet the growing needs of its clients by providing a broad range of NLG applications for implementation across a diverse range of industries globally.

The state of the Company's client pipeline is robust and the Company is moving prospects through the various stages of client engagement to achieve revenues as soon as possible. The Board of Arria NLG looks forward to announcing further new client contracts for its NLG technology.

The Company's interim results for the six months to 31 March 2015 will be announced before the end of June 2015.

For further information, please visit www.arria.com or contact: