Issue of Equity

Posted: 28/07/2009

Forbidden Technologies plc Forbidden or the Company) announces that, on 27 July 2009, it issued 2,500,000 ordinary shares of 0.8p each (the New Shares) to an investor at 10p per share (the Issue Price), paid in cash. The Issue Price represents a premium of 29% to the closing mid-market price on Friday 24 July and the newly-issued shares are covered subject to a 12 month lock in period.

In addition, Forbidden has also issued, to the same investor at no charge, an option over an additional 2,500,000 ordinary shares of 0.8p, such option exercisable, in whole or in part in the 12 months to 27 July 2010, at an exercise price of 12p per share. If exercised, the sale of the new shares arising from the option exercise will be restricted by a partial lock in which provides for a minimum sale price of 15p per share for a period of 12 months from the date of this announcement.

Forbidden is pleased to announce that the new investor is the SF t1ps Smaller Companies Growth fund (SF t1ps), managed by Tom Winnifrith. According to www.trustnet.com, SF t1ps is the best performing small cap fund in the UK over the last twelve months.

Following the issue of the New Shares, the Companys enlarged issued share capital consists of 78,662,500 ordinary shares of 0.8p per share.

The above figure of 78,662,500 may be used by shareholders as the denominator for the calculations to determine whether they are required to notify their interest in, or a change to their interest in, the Company under the FSAs Disclosure and Transparency Rules.

The New Shares will rank pari passu in all respects with the existing Ordinary Shares in the Company. Application will be made for the New Shares to be admitted to AIM at the earliest opportunity.

Background

Forbidden has been working to increase the attractiveness of its shares, in particular to institutional investors. The dominant shareholding of Forbidden's founder and CEO, Stephen B. Streater, has been raised as an obstacle since institutions prefer to invest in companies with at least 25% of the equity in the free float.

While Forbidden considered a rights issue so as to fully protect the interests of smaller investors, the costs involved would have been prohibitive for an issue of this size.

The issue of the New Shares reduces Stephen Streater's shareholding from 82.4% to 79.8% of the enlarged issued share capital of the Company and, in the event that the option referred to above is exercised in full and in the absence of any other relevant transactions, the number of shares in issue would rise to 81,162,500 and Stephen Streaters shareholding would fall to 77.3% of the enlarged issued share capital.

Forbidden is, from time-to-time, presented with new opportunities for its FORscene web-based professional video post-production system which have significant commercial potential. Forbiddens AIM listing has proven itself an efficient route to access the capital markets to pursue these opportunities.

For further information please contact:

Forbidden Technologies plc
Stephen Streater, Chief Executive
020 8879 7245

Brewin Dolphin Investment Banking, Nominated Advisor
Neil Baldwin
0845 213 4726