Issue of Equity

Corac Group plc is pleased to announce that it has placed 14,131,820 Ordinary Shares with M&G Recovery Fund ('M&G') at a price of 35 pence per share ("the Placing Shares") to raise approximately £4.7 million (net of expenses). These additional funds will strengthen the balance sheet and enable the business to grow and realise its potential more quickly while mitigating the risks of commercialising its technology. 

Application has been made to admit the Placing Shares to trading on AIM and Admission is expected to occur on 1 October 2009. The enlarged issued share capital of the Company immediately following admission will comprise 108,343,977 Ordinary Shares with voting rights.