Investment in Sponge

29 March 2012

                      St Ives plc - Investment in Sponge                       

St Ives plc ("St Ives" or "the Group") is pleased to announce that it has made
an investment in Sponge Limited ("Sponge"), a leading provider of mobile
marketing solutions.

The investment in Sponge represents a further step in St Ives' strategy to
create a complementary range of digital and marketing services that will enable
the Group to add value to existing and new clients.

Established in 2002, Sponge provides mobile marketing solutions and mobile
services to a number of leading global brands including adidas, Coca Cola and
McDonalds. The business employs 22 staff and is headquartered in central
London. St Ives is investing in order to enhance the Group's ability to deliver
marketing strategy and communications across a broad range of channels, whilst
accelerating Sponge's expansion.

St Ives has agreed to invest £1.5 million in cash in the form of convertible
loan stock (equivalent to a 24% equity stake on conversion) and will have the
right of first refusal in the event of the sale of all or part of the remaining
equity in the business. The business is currently owned by its co-founders.

Following the investment, Sponge will work closely with St Ives but will
continue to be managed by the existing management team from its current
premises.

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For further information please contact:

St Ives plc 020 7928 8844

Patrick Martell, Chief Executive

Matt Armitage, Finance Director

MHP Communications 020 3128 8100

John Olsen / Ian Payne / Giles Robinson