First Day of Dealing

Velosi Limited
21 August 2006



This announcement is not for release, publication or distribution, in whole or
in part, in or into the United States, Canada, Russia, Japan, the Republic of
Ireland, South Africa, New Zealand or Australia or to any national, resident or
citizen of the United States, Canada, Russia, Japan, the Republic of Ireland,
South Africa, New Zealand or Australia.



                                                                  21 August 2006


                Velosi: First Day of Dealing on AIm and Placing


The Velosi Group ('Velosi Group' or the 'Group'), a provider of quality
assurance and quality control services to a number of leading national and
multinational oil and gas companies, is pleased to announce its flotation on the
AIM Market under the ticker symbol 'VELO.L'.

The placing has raised £10 million (before expenses) for the Group. The net
proceeds will be used to repay existing loans, provide financing for the Group's
acquisitions and planned expansion into new regions and provide working capital
for the Velosi Group.


Placing Statistics

Placing price                                                              90p
Number of new Ordinary Shares being placed on behalf of the
Company                                                           11,111,111
Number of Ordinary Shares in issue immediately following
Admission                                                         38,139,905
Percentage of enlarged share capital comprised by the Placing
shares                                                            29.1 %
Market capitalisation following the Placing at the Placing Price  £34.3 million
Gross proceeds of the Placing                                     £10.0 million
Estimated net proceeds receivable by the Group                    £8.9 million


Background

• The Velosi Group, founded in 1982, provides quality assurance and
quality control services to a number of the leading national and multinational
oil and gas companies, including BP, Shell, ExxonMobil and Chevron. For the five
months to 31 May 2006 the Group recorded turnover of US$22.9 million and profit
before tax of US$3.2 million compared to turnover of US$9.6 million and profit
before tax of US$1.0 million for the same period in 2005, in each case as
extracted from the unaudited management accounts of the Group.

• The oil and gas, petrochemical and power industries are highly capital
intensive. Owners and operators of producing and manufacturing assets (for
example oil rigs, sub-sea pipelines, refineries and power and petrochemical
plants) rely heavily on such assets and therefore invest heavily in quality
assurance and quality control in their development and maintenance in order to
minimise interruptions to production, environmental and/or asset damage and
danger to the health and safety of personnel.

• The Velosi Group operates globally through four principal offices in
the USA, the UK, Malaysia and the UAE and has operational or representative
offices in a further 27 countries worldwide. The majority of the operating and
regional offices are strategically located in close proximity to significant oil
and gas production areas and/or equipment manufacturing industrial centres.

• The Directors intend to develop the business by entering new
geographic regions in new and emerging markets, increasing market share, as well
as adding new services through acquisitions and joint ventures. The Directors
believe the burgeoning activity in the oil and gas sectors in Central Asia,
Russia and Africa represents a significant opportunity for growth for the Group.
The Group is able to compete favourably on price, technical competence and range
of services and therefore the Directors expect to increase the Group's market
share in existing regions.

• Strand Partners Limited ('Strand Partners') is the Nominated Adviser
and Charles Stanley Securities ('Charles Stanley') is the Broker to the Group.


                                    - ENDS -


Media Enquiries:

Velosi            Dr Nabil Abdul Jalil      020 7930 0777
                  Joe Vincent
Strand Partners   James Harris              020 7409 3494
                  Warren Pearce
Charles Stanley   Mark Taylor               020 7739 8200
                  Freddy Crossley
Cardew Group      Tim Robertson             020 7930 0777 / 07900 927 650
                  Eden Mendel               020 7930 0777 / 07887 676 603


A copy of the Admission Document is available from the offices of Stephenson
Harwood, One, St Paul's Churchyard, London EC4M 4AR during normal business hours
on any weekday (other than Saturdays, Sundays and public holidays) for one month
from the date of this announcement.

DISCLAIMER

This announcement does not constitute or form any part of an offer or invitation
to sell or issue, or any solicitation of an offer to purchase or subscribe for,
any shares in Velosi, nor shall it or any part of it or the fact of its
distribution form the basis of, or be relied on in connection with, any
contract thereof.  The contents of this announcement have not been approved by
an authorised person and recipients of this announcement who intend to purchase
or subscribe for shares in Velosi are reminded that any such purchase or
subscription may only be made on the basis of the information contained in the
Company's published admission document (which may be different from the
information contained in this announcement).  Accordingly, no reliance may be
placed for any purpose whatsoever on the information contained in this
announcement or on its completeness.   No representation or warranty, express or
implied, is given by Velosi, its directors, Strand Partners, Charles Stanley,
Cardew Group or any other professional adviser as to the accuracy or
completeness of the information and opinions contained in this announcement and
no liability is accepted for the same or for the omission of any information.
The Ordinary Shares have not been and will not be registered under the U.S.
Securities Act of 1933 (the 'Securities Act') and may not be offered or sold in
the United States or to a U.S. person (as such term is defined in Regulations S
under the Securities Act) absent registration or an applicable exemption from
registration under the Securities Act. Strand Partners and Charles Stanley,
which are regulated in the United Kingdom by the Financial Services Authority
are acting solely for the Company in connection with Admission and no one else.
Strand Partners has been appointed as nominated adviser, and Charles Stanley as
broker to the Company. Neither Strand Partners nor Charles Stanley will regard
any other person as its client nor be responsible to any other person for
providing the protections afforded to clients of either Strand Partners or
Charles Stanley nor for providing advice in relation to Admission.

Certain statements herein may constitute forward-looking statements, including
those identified by the expressions 'may', 'will', 'should', 'could',
'anticipate', 'believe', 'plan', 'estimate', 'potential', 'expect', 'intent' and
similar expressions to the extent they relate to the Company or its management.
These statements reflect the Company's current expectations and are based on
information currently available to management. These forward-looking statements
are subject to a number of risks, uncertainties, assumptions and other factors
that could cause actual results or events to differ materially from current
expectations, including the matters discussed under 'Risk Factors' contained in
the Company's admission document dated 16 August 2006. These forward-looking
statements are made as of the date hereof, and the Company assumes no obligation
to update or revise them to reflect new events or circumstances.




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