StatPro Group PLC – Issue of Debt

For immediate release
12 June 2002


(“StatPro” or the “Group”)

Issue of ?1,000,000 nominal of Variable Rate Unsecured Convertible Loan Stock 2004 (the “Convertible Loan Stock”)

StatPro Group plc (the “Group” or “StatPro”) announces today that it has conditionally placed the Convertible Loan Stock to raise ?1,000,000, before expenses. Of the Convertible Loan Stock, ?600,000 has been subscribed for by certain directors of StatPro, and consequently the issue of the Convertible Loan Stock is a related party transaction pursuant to the Listing Rules and is conditional on shareholders’ approval. The approval of shareholders will be sought at an Extraordinary General Meeting to be held on 3 July 2002.

Justin Wheatley, Chief Executive, commented: “The issue of the Convertible Loan Stock will provide the Group with greater flexibility to finance our strategy of expanding the Group’s product range and creating new distribution channels. Funds can be committed to either acquisitions or development projects whilst leaving the existing working capital facilities in place.”

Andrew Fabian, Finance Director, added: “An important reason for issuing unsecured convertible debt is to allow the Group to accelerate the implementation of the Group’s strategy whilst avoiding significant dilution to Shareholders.”

Background to and reasons for the issue of Convertible Loan Stock

Since its flotation in May 2000, StatPro has developed its existing products and increased the number of contracts from 11 (as at 31 December 1999) to 125 (as at 31 December 2001). The annual value of recurring revenue has grown from ?1.6 million (as at 31 December 1999) to ?6.8 million (as at 31 December 2001). During this period, the Group has focused on its key product areas of StatPro Composites, StatPro Funds and StatPro Performance & Attribution to build up a strong client base and establish itself as a significant provider of specialist performance measurement solutions to the global asset management industry. The Directors believe there remains considerable growth in these products as many potential clients are using older systems and in-house solutions, whereas StatPro can provide software allied with a high quality after-sales service.

The Group has expanded its sales and client services team and has developed a distribution network of six offices in key financial centres. The next stage of StatPro’s strategy is to expand its product range in order to create a multi-product offering. This expanded offering will then be used to leverage both the Group’s existing client base and sales force. In addition, the Group plans to explore the potential for establishing partnerships with third parties to integrate modules of the Group’s systems with their products, thus leveraging their distribution capacity.

The issue of the Convertible Loan Stock provides the Group with greater flexibility in meeting its strategic objectives.

The Convertible Loan Stock

The Company proposes to issue ?1,000,000 in nominal amount of Convertible Loan Stock to raise approximately ?960,000, after expenses of approximately ?40,000. Dominic Wheatley, Mark Adorian, and Justin Wheatley, all of whom are directors of StatPro, have respectively subscribed for ?250,000, ?250,000, and ?100,000 of the Convertible Loan Stock; the balance being subscribed for by an existing institutional investor.

The Convertible Loan Stock, which is unsecured, can be converted at the option of the holder into Ordinary Shares at the rate of one Ordinary Share for each 60p in nominal amount of Convertible Loan Stock converted, or redeemed at the option of the Company, at par, at any time prior to 2 January 2004. The holders of the Convertible Loan Stock will be paid interest on the principal amount of the Convertible Loan Stock held by them, at a rate equivalent to 2 per cent. above the base rate of Barclays Bank PLC from time to time, at six monthly intervals.

Current Trading

At the annual general meeting of the Company held on 15 May 2002, shareholders were informed that during the first four months of 2002 the Group had increased the number of client contracts by 11 to 136. The directors believe that this was a satisfactory start to the current financial year and the directors are continuing to focus on achieving the stated objective of reaching profitability on a month by month basis by the end of the year.

For further information, please contact:

StatPro Group plc

Justin Wheatley, Chief Executive 020 8410 9876
Andrew Fabian, Finance Director

Weber Shandwick Square Mile

Reg Hoare/Rachel Taylor/Claudine Cartwright 020 7950 2800

Notes to Editors:

StatPro Group plc is a leading provider of performance measurement solutions for the global asset management industry. The Group floated on the London Stock Exchange in May 2000 raising ?4.9 million (after expenses).

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