Disposal

30 September 2013 St Ives plc - Disposal St Ives plc ("St Ives" or "the Group") announces that it has today sold St Ives Direct Bradford Limited ("SIDB") to Cogent B2B Limited (the "Disposal"), as part of its continuing strategy to refocus the Group's business. Total consideration for the Disposal will be £8 million, comprising £3 million payable immediately and £5 million of deferred consideration. SIDB offers direct mail, digital printing and general commercial printing capabilities to UK based customers. As at 27 July 2012, SIDB had gross assets of £11.1 million and in the financial year ended 27 July 2012 generated £35.0 million of revenue and profit before tax of £1.2 million. St Ives will retain the ownership of the property currently occupied by SIDB in Bradford and will lease it to SIDB at a market rent. The deferred consideration is repayable in 24 monthly instalments commencing on 1 November 2013, guaranteed by Cogent B2B Limited and secured over SIDB's assets. The Disposal is consistent with the Group's strategy of refocusing on marketing services whilst moving away from the commoditised sectors of the print market. SIDB has continued to experience tough trading conditions, where excess capacity has exerted downward price pressure resulting in reduced levels of profitability. The net proceeds of the Disposal will be used to support further development of the Group's business. Patrick Martell, Chief Executive of St Ives, said: "Following a fundamental realignment of our business, in which we have built a substantial and broadly-based marketing services offering while moving away from commoditised print, it is clear that SIDB no longer fits within our new structure and will benefit from alternative ownership. This effectively completes the exit from our non-core printing operations, and allows us to focus wholly on strengthening our marketing services offering and remaining print businesses, in line with our stated strategy." - Ends - For further information please contact: St Ives plc 020 7928 8844 Patrick Martell, Chief Executive Matt Armitage, Chief Financial Officer MHP Communications 020 3128 8100 John Olsen / Giles Robinson

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