Acquisition

Northern Bear Plc
05 February 2007


For immediate Release 
5 February 2007

                             Acquisition of MGM Ltd

  Acquisition of residential and commercial property refurbishment specialist

The Board of Northern Bear PLC ('Northern Bear' or 'the Company') is pleased to
announce the acquisition of MGM Ltd ('MGM'). MGM, based in the North East, is a
provider of specialist services relating to the refurbishment of commercial and
residential property and listed buildings. The directors of Northern Bear
believe that this acquisition is a good strategic fit for the Company's group.

In the year ended 30 April 2006, MGM reported turnover of over £6.4 million, an
operating profit of £116,000 and net assets of £764,000.

The consideration to be paid for the entire issued share capital of MGM is £2
million ('the Consideration'). The Consideration is to be satisfied by the
payment of £1.3 million in cash from the Company's existing resources and by the
allotment of 715,015 Ordinary Shares in the capital of the Company, having an
approximate value of £700,000. These shares will be issued at completion and are
expected to begin trading on AIM on 8 February 2007.

As a result of the issue of new shares as part of the Consideration, the issued
share capital of the Company will now comprise 12,008,034 Ordinary Shares of 1p
each, with each share carrying the right to one vote.

For further information contact:
Northern Bear PLC
Graham Forrest, Chief Executive Officer                Tel: [phone]

Dawnay, Day Corporate Finance Limited
Sunil Sanikop                                         Tel: [phone]
Jonathan Garbett                                      Tel: [phone]





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