Issue of Equity

Cheerful Scout PLC 05 April 2005 Cheerful Scout Plc: Ticker: CLS / Index: AIM / Sector: Media Cheerful Scout plc ('Cheerful Scout' or 'the Company') Issue of Equity Cheerful Scout, the AIM listed multi media group is pleased to announce that it has raised £525,000 before expenses through the placing of 50,000,000 new ordinary shares of 0.5p each at 1.05p per share. The funds raised will be used to fund sales and marketing of the Company's new product, nVision Presenter and to further develop its nVision Strategy product. Cheerful Scout Chairman Stuart Appleton said: 'We have raised the new funds as we feel we have a great opportunity with our new products and want to truly capitalise on their market potential. The first product is a new high-end presentation tool, nVision Presenter. The system delivers real-time 3D graphics and provides an impressive widescreen platform that brings together all manner of visual media on one highly impressive 'virtual stage'. Unlike other product in the market, it has the power to render graphics in real-time and thus allows for all kinds of hitherto almost impossible interactive opportunities. Initial feedback has all been extremely positive. As stated in our last announcement we hope to launch a second nVision product later this year that takes the technology to another level and into a different market sector.' Application has been made for the admission of 50,000,000 new ordinary shares to trading on the AIM market. The new ordinary shares will rank pari passu with the existing ordinary shares of the Company and dealings in the new ordinary shares are expected to commence on 8 April 2005. ENQUIRIES: Gary Fitzpatrick Cheerful Scout Tel: 020 7291 0444 Isabel Crossley St Brides Media Tel: 020 7242 4477 Notes: Cheerful operates its business in three core areas: production of DVD's for the retail sector, where it has delivered more than 300 DVD projects to date including high profile series such as Bad Girls, Footballers Wives and Spooks; corporate communications, producing programmes for blue-chip clients including Allen & Overy; and its new products under the nVision technology brand. This information is provided by RNS The company news service from the London Stock Exchange
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