Sale of equity stake in DC Storm Ltd

RNS Number : 7832L

Asia Digital Holdings PLC

05 August 2011

Press Release

5 August 2011

Asia Digital Holdings Plc

("ADH" or the "Company")

Sale of equity stake in DC Storm Ltd

Asia Digital Holdings plc (AIM: ADH.L), an independent online marketing group announces that it has completed the sale of its 20.6% shareholding in DC Storm Ltd ("DCS"), a web and software development company in which it held a residual stake, to existing shareholders in DCS, pursuant to existing pre-emption rights.

The total consideration for the sale of the shareholding in DCS, which has been received by the Company, is £200,000 in cash which will provide additional working capital for the Group.

ADH acquired its interest in DCS through a series of share subscriptions in 2006 and 2007. ADH's total investment was £231,460. For the year ended 31 December 2010 DCS had revenues of £1.28m (2009: £726,000), a profit after tax of £33,000 (2009: loss of £259,000) and net assets of £601,000.

In view of historical trading performance of DCS, an impairment review of the investment was carried out by ADH's management in 2009 and as a result the value was written down to Nil. The transaction will, therefore, generate a profit in ADH's accounts (net of £5,500 costs) of £194,500.

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