Sale of Investee Company

NewMedia SPARK PLC 08 August 2006 For Immediate Release 8 August 2006 NewMedia SPARK plc announces the cash sale of Mergermarket Limited, a company it backed as a start-up in 1999. NewMedia SPARK plc ('SPARK'), the investor in early stage digital information and technology companies, is pleased to announce the conditional sale of Mergermarket Limited, ('Mergermarket'), to the Financial Times Group part of Pearson plc (LSE:PSON) at a £14.8m premium to SPARK's book value, thereby giving SPARK a return of almost 24 times its initial investment.' SPARK's book value for its stake in Mergermarket was £8.0 million at 31 March 2005 and £13.0m at 30 September 2005. SPARK'S expected proceeds from this sale amount to approximately £27.8m. SPARK was the first investor in mergermarket as a start-up in 1999 and has invested a total of £ 1.175 million, comprising £725,000 initially, £200,000 in September 2000 and a further £250,000 as a participant in a follow on round in 2001. SPARK intends to use the proceeds to continue investing in accordance with its stated investment strategy and to continue its share buyback programme. SPARK's team has been investing in early stage start -up technology businesses since 1985 and in recent years has successfully exited from several early stage investments at significant premiums to book value such as Footfall, Pricerunner and Elata. The transaction is expected to complete within three to four weeks once confirmation has been received from certain EU competition authorities that the acquisition can proceed. Tom Teichman, Chairman of SPARK and Director of mergermarket said : 'This transaction reflects SPARK's core competence of picking start-up and early stage investments created by outstanding management teams in growing markets. 'Mergermarket has performed extraordinarily since its foundation and the launch of its first working product in 2000 in a very competitive but vibrant market dominated by established major players, almost always exceeding its targets. Even in M & A downturns it has performed excellently and come up with very attractive and innovative products. This is the type of transaction SPARK was established to 'spark' into life as the core of its business model. We believe the sale of the business to the Financial Times Group will provide an excellent base from which the company can continue to grow rapidly while incorporating its products and resources into and benefiting from the large Pearson financial information network, particularly the Financial Times Group.' Caspar Hobbs, Chief Executive of Mergermarket said: 'SPARK saw exactly what we were trying to do when we simply had a business plan and lots of enthusiasm, they backed both. They have been great partners and shareholders, supportive and encouraging from the earliest stages of the company and in every phase of its growth. They understand entrepreneurs because they are entrepreneurs. Their wisdom and perspective always added great value. We are delighted to now be a member of the Financial Times Group and we are extremely excited about building our business with them going forward. ' Hawkpoint acted as financial advisers to the shareholders of Mergermarket in relation to its sale to Pearson Plc. Spark will be releasing its preliminary announcement of results for the year ended 31 March 2006 shortly. Management expects to value SPARK's stake in mergermarket in those results at the levels implied by the transaction announced today, net of provisions for costs and SPARK management's 20% interest in portfolio profits above an annual hurdle. Taking into account trading and other portfolio valuation changes during the period ended 31 March 2006, SPARK expects its NAV as at 31 March 2006 to be approximately 17.7p. Enquiries: For NewMedia SPARK Thomas Teichman, Chairman 07007 333 123 Andrew Carruthers, Chief Executive Officer 020 7851 7777 Isabel Podda, Buchanan Communications 020 7466 5000 Notes to Editors: About NewMedia SPARK plc NewMedia SPARK is a quoted venture capital organisation based in central London focused on early stage investments in the technology, media and telecoms sectors. SPARK's portfolio has a particular emphasis on digital media, software applications, technology and communications. As an investor, SPARK expects to add significant value to its investments through active support and strategic direction. SPARK is listed on London's Alternative Investment Market. For further information, see www.newmediaspark.com. About Mergermarket Mergermarket is a leading provider of proprietary predictive event-driven intelligence to investment banks, hedge funds, private equity houses, wealth managers, restructuring specialists, law and accountancy firms and corporates worldwide. Since its foundation in 1999, mergermarket has successfully built an unrivalled blue chip client base through the development of its complementary portfolio of 'must have', subscription-based electronic products including mergermarket, Debtwire, dealReporter and Wealthmonitor which appeal to a broad range of the financial services industry as well as corporate clients. Fore more information, please visit www.mergermarket.com This information is provided by RNS The company news service from the London Stock Exchange
UK 100

Latest directors dealings