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Warthog PLC (WHOG)


Thursday 24 January, 2002

Warthog PLC

Issue of Equity/Prop.Acqn

Warthog PLC
24 January 2002

                    Warthog plc ('Warthog' or the 'Company')

        Placing of New Ordinary Shares for Cash and Proposed Acquisition

Warthog, one of Europe's leading independent games software developers,
announces that it has raised approximately £2.1 million (before expenses) by way
of a placing for cash of 4,187,400 new ordinary shares of 1p each ('New Ordinary
Shares'), representing approximately 10 per cent of the ordinary share capital
of the Company, with institutional investors at 50p per share. Beeson Gregory
Limited were financial advisers and brokers to the issue.

Key points:

  • Placing of 4,187,400 New Ordinary Shares to raise £2,093,700 (before

  • Placing price of 50p represents a discount of 6.5 per cent. to the closing
    mid-market price on 23 January 2002

  • New Ordinary Shares placed with new and existing institutional investors

  • Placing proceeds will increase working capital resources for organic
    growth and strategic acquisitions

Warthog also announces that it is in exclusive negotiations to make an
acquisition, although full details cannot be disclosed at this stage. Although
these negotiations are still to be finalised and there can be no assurance that
this transaction will proceed, the Company hopes that it will be able to
complete the acquisition by the end of the first quarter of 2002.

Key points on the acquisition/target:

  • Expected to be earnings enhancing in next financial year (ended 31 March

  • Heads of Terms have been signed and an integration plan agreed

  • The target has a team of more than 20 developers, operates on a relatively
    low cost base and is a good cultural match with Warthog

  • The target's team has developed more than 10 high quality games, including
    several hits

Ashley Hall, Chief Executive Officer and Managing Director at Warthog,

'Warthog is now in a strong position to fund its continued expansion through
both organic growth and strategic acquisitions. We are pursuing attractive
opportunities in both areas, which we hope to report on in the near future.'

Application has today been made for the New Ordinary Shares to be admitted to
trading on AIM. Admission is expected to become effective on 30 January 2002.

Beeson Gregory Limited, which is regulated by the Financial Services Authority,
has approved publication of this document for the purposes of section 21 of the
Financial Services and Markets Act 2000.


Ashley Hall - Chief Executive Officer and Managing Director

Andrew Gething - Corporate Development

Warthog plc - 0161 608 1200

Jonathan Freeman

Beeson Gregory Limited - 020 7488 4040

David Simonson and Clare Maciocia

Merlin Financial Communications - 020 7606 1244

24 January 2002

Notes to Editors


Warthog plc is one of Europe's leading independent games software developers.
The Company, based in Manchester, UK was established in 1997 and has been
profitable since creation. Warthog prides itself on its highly experienced 170
strong development team, whose combined experience covers more than 100 games
titles across all major platforms and most games genres.

At present, the Company is working with numerous high profile licensees to
develop video game versions of such entities as Tiny Toon Adventures, Animaniacs
and X-Men as well as its own game creation Bounty Hunter, for Microsoft's Xbox.
Further to developing games across all platforms, Warthog retains strong
relationships with major international publishers across the industry, including
Microsoft, THQ, Electronic Arts, Activision, Crave, Sci and Infogrames. Warthog
has successfully entered the Mobile gaming market with its first mobile game
being published in 2001.

Warthog plc successfully floated on the Alternative Investment Market on the 1st
February 2001.

                      This information is provided by RNS
            The company news service from the London Stock Exchange


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