Business update / Issue of Equity

CORSIE GROUP PLC                                

                           ("Corsie" or the "Group")                           

                       BUSINESS UPDATE / ISSUE OF EQUITY                       

The Board of Corsie, the AIM listed specialist in the assembly and sale of
products and services to the leisure market, today provides the market with the
following update.

HIGHLIGHTS

  * Placing to raise £671,000;
   
  * New seven year Banking facility agreed with HBoS;
   
  * Two new distribution agreements secured;
   
  * Former Scottish Rugby Captain Jim Aitken appointed to Board; and
   
  * Sale of property option for £350,000.
   
Placing

The Board is pleased to announce that it has raised £671,000 through a Placing
of 2,236,666 new Ordinary Shares at a Placing price of 30p ("the Placing"), to
provide the Company with additional working capital to fund growth
opportunities. As part of the Placing, Jim Aitken, David Mathewson and Graham
Robertson, all directors of the Company, have invested £450,000, £65,000 and £
6,000 respectively.

Application has been made for the admission of the 2,236,666 new Ordinary
Shares to trading on AIM. Admission of the new ordinary shares is expected to
take place on 19 December 2007.

Distribution agreements secured

The Group has secured two new exclusive distribution agreements with Sovereign
Laboratories of Sedona, Arizona ("Sovereign"). Under the terms of the
agreements the Group has signed 3 year exclusive agreement to distribute the
TRULAX range of products and the Viraloxგ antiviral product.

These new contracts are in line with the Board's stated strategy to increase
revenue through selective distribution agreements.

New Banking facilities secured

The Group's bank, The Bank of Scotland plc has agreed to provide £2.15 million
of committed debt facilities to the Group repayable over 7 years and an
overdraft facility of £0.20 million. The Board is pleased to have secured these
facilities on a long term and committed basis.

Sale of property option

The Board is pleased to report that it is has agreed (subject to prior
shareholder approval to be sought at a general meeting to be convened) to sell
its purchase option over its property at Unit 5, Gateside Commercial Park,
Haddington to Mr James Aitken (or an entity controlled by him) for a price of £
350,000.

As stated at the time of the preliminary results statement, the Board would
consider leveraging the equity within the property to fund future targets and
new distribution agreements. The Board has considered various options to
release the available equity within the property and has concluded the sale of
the purchase option is in the Company's best interests.

The Group will thereby generate £350,000 (before costs) from this sale. Such
proceeds will be received prior to 31 January 2008 and will be used to
strengthen the balance sheet and fund the working capital needs of the
business.

Board Strengthened

As previously announced, Corsie appointed Mr James ("Jim") Aitken as a
non-executive director with immediate effect. Jim, a former Scotland Rugby
Captain and well known for leading his country to a grand slam victory in 1984
and a 25:25 draw against the All Blacks, is an experienced and successful
businessman, bringing to the Board a strong proven track record in business.

Related Party Transactions

The sale of the property option and the Placing both constitute related party
transactions as defined in AIM Rule 13. The Directors of the Company (save for
Jim Aitken, David Mathewson and Graham Robertson who are connected with the
transactions) consider, having consulted with the Company's Nominated Adviser,
City Financial Associates Limited, that the terms of the sale of the property
option and the Placing are fair and reasonable in so far as the Company's
shareholders are concerned. City Financial Associates Limited has relied on the
directors' commercial assessment of the transactions.

Enquiries:

Corsie Group plc                            Tel: [phone]               
Richard Corsie, MBE, Chief Executive                                         
www.corsiegroup.com                                                          
                                                                             
City Financial Associates Limited           Tel: [phone]               
James Caithie                                                                
                                                                             
Bishopsgate Communications Ltd              Tel: [phone]               
Dominic Barretto                                                             
Jenni Herbert                                                                

About Corsie Group plc

Corsie is a provider of products to the worldwide leisure market. Its business
operates in the UK and has customers in a number of geographical markets
including Europe, Canada, Hong Kong, Malaysia, Australia and New Zealand. The
business was founded by Richard Corsie in 1997 after he retired from the sport
of bowls and following the buyout of Douglas Kenn Limited and Worth Sports
Limited. Corsie operates from its headquarters in Haddington, near Edinburgh.

The Corsie Group is involved in the assembly and sale of products and services
to the leisure market. The Group consists of three operating divisions: Spa
Division, Surfaces Division and Sports Division. Within each division, the
Group is focused on achieving growth both organically, and through selective
acquisition of companies or businesses in the leisure market.

On 19 September 2006, Corsie announced that it had acquired the business and
assets of Kaloss International Limited, a distributor and wholesaler of health
and beauty products, for a cash consideration of £434,000. Information on
Kaloss can be obtained at: www.kaloss.com .