New loan facility

Screen Technology Group plc 06 November 2007 Screen Technology Group plc Loan and Trading Agreement with Shearline Precision Engineering Limited Screen Technology Group plc ("Screen Technology" or the "Company") announces that it has entered into a Loan and Trading Agreement (the "Agreement") with Shearline Precision Engineering Limited ("Shearline"). The agreement underpins a key strategic relationship with Shearline and provides the Company with £500,000 of working capital funding. Shearline is an established strategic partner based in Ely which manufactures iTrans tiles and modules on behalf of Screen Technology. Under the terms of the Agreement Shearline will provide Screen Technology with a loan of up to £500,000, repayable in equal instalments over 60 months, to fund the Company's existing debt of £333,694 from Shearline and to fund further manufacturing and development costs. The loan bears interest at a variable commercial rate, can be repaid without penalty at any time and is secured by way of debenture on the Company's intellectual property. This security will be released on repayment of the loan. Shearline have also been granted warrants over 1,000,000 Ordinary Shares, representing approximately 2.8 per cent of the current issued share capital, exercisable at a subscription price of 5p per share at any time until November 2012. Peter Smyth, non-executive Chairman said: "We are delighted with this further strengthening of our relationship with Shearline which also provides us with significant additional financial resources." Enquiries: Screen Technology Group plc 01223 559600 Thomas Jarman, CEO Charles Stanley Securities 020 7149 6000 (Nominated Adviser) Russell Cook Henry Fitzgerald O'Connor This information is provided by RNS The company news service from the London Stock Exchange

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