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Vebnet (Hldgs) PLC (VBT)

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Thursday 22 December, 2005

Vebnet (Hldgs) PLC

Placing

Vebnet Holdings PLC
22 December 2005






                             VEBNET (HOLDINGS) PLC

 £1.04m of new money raised to consolidate progress, register quality improved

Vebnet, the Edinburgh-based, AIM-traded leading provider of technology for
employee benefit solutions, announces that it has raised £1.04m (gross) of new
money by the placing of 695,000 shares at 150p per share. In addition, 820,000
existing shares have been placed at the same price. 750,000 of these shares have
been sold by Cross Atlantic Technology Fund LP, the venture capitalist which is
Vebnet's principal initial funder, and remains its principal shareholder, with
1,684,475 shares (18.4% of the enlarged share capital of 9,168,333 shares), and
50,000 by Dr. Gerry O'Neill, Vebnet's CEO, 4.7% of his holding of 1,061,634
shares.

The principal placees include one existing institutional holder, Liontrust,
which acquired 344,000 shares at a cost of £0.52m, taking its holding to 955,229
shares (10.4%), and three new institutional holders, notably JP Morgan, which
acquired 745,334 shares (8.1%) at a cost of £1.12m. In addition, Mr Montague
Samuels, a Non-executive Director, yesterday informed the Company that he had
acquired in the placing 85,000 shares, at a cost of £0.13m, to add to his
existing holding of 179,360 shares (2.1% of the existing share capital), taking
his holding in the enlarged share capital to 264,360 shares (2.9%). The placing
was over-subscribed.

Application will be made for the new ordinary shares to be admitted to trading
on AIM and dealings are expected to commence on 3 January 2006.

Gerry O'Neill stated: 'At the AGM on 30 November, it was stated that Vebnet's
turnover is expected to double in the first half and is well on track to meet
market expectations for the full year. At that time, it was disclosed that the
cash position was £1.4m, an increase of £0.1m on the 30 June 2005 year end. The
placing will provide Vebnet with further resources to fuel its continuing
successful advance, considerably strengthens the institutional register, and
provides a return for Vebnet's initial VC funder.'

Notes for Editors:

Vebnet, which was founded in July 2000, develops and implements internet-based
technology solutions and services to support the communication, delivery and
administration of flexible employee benefit schemes. In the year to 30 June
2005, Vebnet reported its initial profit on a substantially increased turnover
of £3.24m, of which £1.06m was in H1.

Enquiries:

Vebnet
Gerry O'Neill (CEO)                                               0131-270 5502;
                                                                  07990-584 096;
                                                              [email protected]
Stephen Thurlow (Finance Director)                                0131-270 5503;
                                                                  07899-912 522;
                                                            [email protected]

Seymour Pierce (NOMAD and broker)
Jonathan Wright                                                  020-7107 8000;
                                              [email protected]

Bankside Consultants
Charles Ponsonby                                                 020-7367 8851;
                                                 [email protected]




                      This information is provided by RNS
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