TANGIBAL GROUP PLC

TANGIBAL GROUP PLC ANNOUNCES FINAL RESULTS - Seite 2

As a result of the failed investment the Group was forced to reconsider its growth strategy. Originally, the new investment would have been used to increase the Group's media networks across the UK, India and US, instead of which the Board had to focus on maintaining the Group's existing revenue generating media networks, and restructuring / disposing of businesses that required immediate funding to progress in order to reduce the Groups liabilities.

As a result during the period the Group was forced to dispose of certain non-revenue generating assets that were accruing liabilities namely: VMG UK Pubs Limited, VP Media Limited, VMG UK Malls Limited and Ridercam Systems Limited.

Through rationalization and focus on the core businesses of the Group we have however managed to deliver positive results in the last 4 months of the financial year particularly in the Groups' subsidiary VP Networks Limited where we have sold screen hardware and software to third parties and generated £226,666 of gross turnover.

Following the reverse takeover (RTO) in January 2013 we have managed to successfully navigate through difficult times and your Company is now beginning to deliver positive results.

Tangibal Media

Tangibal Medias' principal focus has been maintaining its existing interactive screen business in Cinema foyers. The company has performed against expectations in a difficult media sales market.

VP Networks Limited (VP)

Formerly known as Infotech Digital, VP is the Groups engineering and operations division. This business builds, installs and maintains the screen media networks either owned by the Group or for third parties. During the period the Company turned over £226,666 of which £133,333 was generated in the last quarter of our financial year. This business has continued to grow in the current financial year and with the new acquisition of Instant Business Ltd (www.connectib.com) we believe the outlook for our technology division is very positive.

Corporate Update

Since the year end your board has secured new finance partners with Trafalgar Capital who have provided Tangibal Group with a revolving $5 million credit line. This credit line has provided the Group with the financial backing required to effect its stated strategy of growth through acquisition with a focus on consolidating its position as a major Shopping Mall advertising network owner in the UK and developing Mall networks in other countries.