Sale of Investment

Dunedin Enterprise Inv Trust PLC 09 March 2006 For Immediate Release: Thursday 9 March 2006 Dunedin Sells Letts Filofax for £45 million -------------------------------------------------------------------------------- Dunedin Capital Partners ('Dunedin'), the UK mid-market private equity house, announces today that Letts Filofax Group ('Letts Filofax'), the market leading supplier of personal organisers and diaries, has been sold to Phoenix Equity Partners for £45 million. Dunedin Enterprise Investment Trust PLC ('Dunedin Enterprise'), the investment trust managed by Dunedin, will receive £18.2 million from the sale of Letts Filofax which was valued at £17.4 million at 31 October 2005. The uplift on sale of £0.8 million represents 2.8p per share. Dunedin Enterprise invested a total of £4.0 million and will have received £24.1 million in capital and income from this investment. Dunedin's investment has returned a money multiple of six times which represents an IRR of 49% over five years. With Group Headquarters based in Edinburgh, Letts Filofax designs and sells organisers, diaries and related accessories through its two UK and nine overseas subsidiaries. It has one manufacturing plant which produces over 22 million books per year. The Group is firmly established as the UK market leader and exports its products to over 40 countries worldwide. Dunedin initially invested in Letts in 2000 when it supported the £17 million management buyout (MBO) led by Managing Director, Gordon Presly and Finance Director, Gordon Raw. The strength and focus of the management team impressed Dunedin and the deal was completed quickly in the face of fierce competition from trade and other financial buyers. It acquired Filofax the following year in a £14.5 million acquisition. Dunedin supported the acquisition soon after the initial buyout recognising that consolidation of the Letts and Filofax brands would bring attractive synergies. Since the original buyout, the combined business of Letts and Filofax has seen annual profits grow by over 70% driven by a strong management team and Dunedin's strategic support. Gordon Presly, Letts Filofax Group Chief Executive, commented, 'Since acquiring Filofax, the Group has developed into a robust international operation producing excellent returns. We have invested cash, time and resource in all aspects of the company both in the UK and overseas which has helped to generate an impressive financial performance over the past five years. We have a committed management team who are re-investing in the Group and that is a very positive sign for all our customers and employees. ' Brian Scouler, Managing Director, Portfolio at Dunedin added, 'Letts Filofax has been a great investment for us with a successful exit generating a six times money multiple. The business has performed superbly since we supported the buyout six years ago. We wish the company continued success in the future. ' For further information, please contact: Dunedin Capital Partners Limited Brian Scouler 07811262796 Fiona MacRae 0131 718 2313 Letts Filofax Group Gordon Presly 0131 654 7402 / 07976 330 882 Binns & Co PR Limited 020 7786 9600 Peter Binns 07768 392 582 Chris Steele 07979 604 687 Annie Evangeli 0777 850 7162 EDITORS NOTES 1. Dunedin (www.dunedin.com) Dunedin provides equity finance for management buyouts and management buyins with a transaction size of £10 million - £50 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 invests in established companies, in a broad range of industry sectors, which demonstrate a history of sales and profit growth. It helps to define and set the strategic goals of these companies whilst empowering the management teams that run them and provides additional capital for growth if required. Dunedin is authorised and regulated by the Financial Services Authority. 2. Letts Filofax Group Ltd (www.letts.com, www.filofax.com) Letts Filofax Group Ltd is a market-leading consumer products company combining two globally recognised brands in Filofax, which offers personal organisers and related accessories, and Letts which supplies diaries and related stationery products. The Group markets its products to retail and corporate customers in the UK, Western Europe and North America as well as several other international markets. The Group has a strong reputation for product design and innovation, creating fashionable, high quality products. Letts Filofax Group is headquartered in Edinburgh, Scotland with facilities and offices in London, Burgess Hill (near Gatwick), Birmingham, France, Italy, Germany, Sweden, Denmark, USA, Canada and Hong Kong. This information is provided by RNS The company news service from the London Stock Exchange
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