Application will be made for all of the New Ordinary Shares to be admitted to trading on the AIM Market of London Stock Exchange plc ('Admission'). It is expected that dealings in the New Ordinary Shares will commence on 2 June 2006. The New Ordinary Shares will, on Admission, rank pari passu in all respects with the existing issued Ordinary Shares including the right to receive all future dividends and other distributions made or paid after the date of the
issue of the New Ordinary Shares.
On Admission, assuming no exercise of outstanding options before that date, the Company will have 118,906,650 Ordinary Shares in issue. The New Ordinary Shares will represent approximately 16 per cent. of the Ordinary Shares then in issue.
Use of proceeds of the Placings
The net proceeds of the Placings will be used to support Leadcom's initiatives to increase the size of contracts undertaken and the speed at which they are delivered; to access more swiftly the perceived attractive returns available in the Indian market; to increase the Company's presence in developed economies such as Western Europe and the United States; and to provide greater financial flexibility to take advantage of future business opportunities. Leadcom's management believes that, as a result of the growth opportunities available to the Company, the issue of the New Ordinary Shares will not negatively impact earnings per share in the current year.
Commenting on the Placings, Arik Alcalay, CEO of Leadcom, said:
'I am delighted with the support we have received from a broad range of investors. The enlarged equity base means that we are well positioned to take advantage of an increasing number of attractive opportunities to accelerate the growth of the business and deliver enhanced value to our shareholders.
'The Company continues to experience the successful growth trends announced at
the time of the trading update released on 31 March 2006 and is confident that
the results for the full year will reflect these trends.'
* Exchange rate used: £1.00 = $1.87
Enquiries:
Arik Alcalay / Eytan Mucznik - Leadcom
Tel: +972-3-557 6990
Ben Thorne / Garry Levin - Altium
Tel: +44 (0) 20 7484 4040
Luke Ahern - Corporate Synergy
Tel: +44 (0) 20 7448 4430
Andy Berry / Michelle James - Fishburn Hedges
Tel +44 (0) 20 7839 4321 / 07767 374421 / 07958 451446
