Acquisition

Dunedin Enterprise Inv Trust PLC
27 June 2007




The following is the text of a press release issued by Dunedin Capital Partners
Ltd ('Dunedin') which manages the investment portfolio of Dunedin Enterprise
Investment Trust PLC.


The Dunedin Enterprise Investment Trust, which is a listed investment trust
giving investors the opportunity to invest in all of Dunedin's investments, will
invest approximately £2.9 million in Fernau Avionics Limited.



27 June 2007

                        DUNEDIN LEADS £16 MILLION BUYOUT

                               OF FERNAU AVIONICS


Dunedin, the BVCA Private Equity House of the Year, has backed the management
buyout of Fernau Avionics ('Fernau'), a world-leading designer and manufacturer
of Navigational Aids to the civil and military aviation markets in the UK,
Europe, North America and the Far East. The management buyout will enable the
previous owners, Glendale International, the quoted Canadian company, to focus
on its other business interests. Dunedin invested £8 million for a significant
majority equity stake.


'Having made significant investment in R&D, Fernau has a reputation for
providing products with the highest technical standards in the market.  This has
helped the company secure important new contracts with blue chip customers
including civil aviation authorities and military users. An ageing
infrastructure around the globe means Fernau is in a good position to benefit
from the continuing and necessary upgrade to the installed base of Navigational
Aids.


'Dunedin takes a partnership approach to its investments and will be working
closely with the management team to develop the business through organic growth
and to make acquisitions that will take Fernau into new markets to better serve
existing customers and to develop new customers.' commented John Hudson, the
director who led the deal for Dunedin.


Navigational Aids are primarily fixed, ground-based installations which transmit
a series of radio signals which allow pilots to navigate safely and efficiently
and gain accurate location information. The equipment is owned and maintained by
government and national bodies as it is safety-critical and security-critical.
For example the 2020 DME (Distance Measuring Equipment) advises the pilot the
distance to an airport or waypoint. Virtually all airports in the UK use
Fernau's DME due to its high reliability and ease of operation.


A military version of this equipment, which can also transmit bearing
information, is known as a TACAN (Tactical Air Navigation). The 2010 TACAN is in
current service with several Nato countries and has recently been deployed in
the USA. Fernau also manufactures a ruggedised mobile version of the 2010 which
can be rapidly deployed in under 30 minutes making it an indispensable piece of
tactical equipment for todays modern military forces.


Customers include the MoD, SAIC (for the US airforce), Nav Canada and Avinor (a
state owned Norwegian company that owns and operates 46 airports all over the
country, 14 in association with the armed forces and responsible for air traffic
control services).


Kevin Kearns, Managing Director of Fernau, believes that the company is
positioned well for future growth: 'Over the last two years we have signed major
contracts with new customers in both the North American and European markets. We
are focused on building upon these successes by producing innovative products of
the highest reliability backed up with first rate customer support.'


Dunedin has appointed Allen Standley as Non Executive Chairman. Allen has
considerable experience within the electronics industry, having held a number of
high profile positions, including the role of Chairman and Chief Executive of
Vida Group, and Non-Executive Chairman of Walker Dickson Group. Dunedin's Brian
Scouler and Andrew Pickup have also joined the board.


Fernau employs 70 people from its Luton base.  Founded in 1970, the company has
sold over 1,000 navigational systems which are installed throughout the world.
In addition to the design and manufacture of Navigational Aids, Fernau provides
associated services including site survey, installation, system commissioning,
training, spares and repairs, and logistics support.  Fernau's products meet the
increasing demands for greater reliability, performance and control.


Advisors:

   • Mat Bhagrath, Amish Bakhai and Ashish Patel from Grant Thornton provided
     buy side advice to Dunedin on the acquisition;
   • Simon Sale, Nadim Meer and Neil Skennerton from Dundas and Wilson
     provided legal advice to Dunedin and Newco;
   • Rebecca Guerin from Vantis undertook Financial Due Diligence
   • Mark Jeynes from Parthenon completed Commercial Due Diligence


                                     -ENDS-


For further information, please contact:

Equity Dynamics

Jane Kirby 07825 326 441

Corinna Vere Nicoll 07825 326 440



EDITORS NOTES

About Dunedin (www.dunedin.com). Contact Ross Marshall, Chief Executive, 0131
225 6699, 07768 794 180 [e-mail]


Dunedin provides equity finance for management buyouts and management buyins
with a transaction size of £10 million - £75 million.  It is an independent
private equity house, owned by the directors and staff, operating throughout the
UK from offices in Edinburgh and London.


Dunedin was voted the 2007 BVCA & Real Deals 'Private Equity House of the Year'
and the 2006 Unquote 'Small Buyout House of the Year'.


In 2006, it raised a new £250 million buyout fund which was significantly
oversubscribed.  It also manages the quoted private equity investment trust,
Dunedin Enterprise Investment Trust PLC.


Dunedin invests in established companies in the following sectors: construction
and building materials, consumer products and services, financial services,
healthcare, leisure, specialist manufacturing and support services.


During the past 18 months, Dunedin made new investments in Capula, etc.venues
and WFEL and successfully realised investments in Letts Filofax, Caledonian
Building Systems, Celtic Inns, Home & Legacy Insurance, Travel & General
Insurance, Davenham, Portman Travel and Zenith Vehicle Contracts.


The new fund gives Dunedin the firepower to invest up to £50 million of equity
in a deal allowing it to focus on buyouts of up to £75 million enterprise value
and then to pursue buy and build and roll-out opportunities.


About Fernau Avionics (www.fernau.com) Contact Kevin Kearns, Managing Director:
01582 748603 Email: [e-mail]


Fernau Avionics is a leading supplier of Navigational Aids to the international
civil and military market. Fernau designs, manufactures and markets its products
from its base in Luton. In 2006 sales increased by over 20% with operating
profits doubling, profits have increased each year since 2001. Exports typically
account for 90% of revenues.


In addition to the products mentioned above Fernau manufactures high precision
DF (Direction Finding) systems for the military and civil markets. The 2010 DF
is used for surveillance purposes and for emergency search and rescue.
Operations. The DF is widely deployed in the UK, Europe and the Middle East.


Fernau's latest product is a PLB (Personal Locator Beacon) designed to be worn
by military pilots to aid their rescue after ejection from their aircraft. The
Fernau 2100 features built in GPS to ensure high accuracy and also a transmitter
capable of communicating with a satellite so that its signal can be located
anywhere on Earth. The 2100 has recently been sold in Europe and the Far East
and is the only fully approved military beacon on the market today.




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