Fieldbury Plc

2009-07-09
9 July 2009

Freeplay Energy plc
("Fieldbury", "the Group" or "the Company")

Proposed disposal of Dixie Sales Company Inc.

Proposed cancellation of share premium account, capitalisation of reserves, reduction of share capital and amendments to Articles of Association

Fieldbury Plc is pleased to announce that, subject inter alia to Shareholders' approval, it has entered into a conditional agreement to dispose of Dixie Sales Company Inc. ("Dixie Sales") to a group of Shareholders, including three directors of the Company, Harold Reiter, William Barrett and Edward Barrett, for a principal consideration comprising the effective cancellation of 40% of the Group's ordinary shares, currently owned by the consortium, and a cash consideration of $500,000.

Dixie Sales is an established sales, marketing, distribution and customer service provider based in Greensboro, North Carolina, USA.

Following completion of the Disposal, the Board estimates the Group will have cash of US $4.1 million (before expenses), including the $500,000 detailed above plus the remaining deferred cash consideration of US $1.5 million due to it under the terms of the sale of the Freeplay Division. This is equivalent to approximately 4.4 pence per ordinary share on the reduced capital base.

Fieldbury will then become an Investing Company under the AIM rules, with the proposed strategy to acquire or take an interest in a company or business involved primarily in the following sectors: renewables, alternative energy, environmental or consumer and financial services markets.

Prior to the disposal of the Freeplay Division in August 2008, the Group had been focused on the renewable energy sector and consumer markets. Once Freeplay was sold, Dixie Sales, which was loss-making in the first four months of 2009, was the sole remaining trading subsidiary of Fieldbury.

Rather than concentrate the available resources within the Group to the development of Dixie Sales in North America, the Board decided that it would be in the best interests of the Group and the Shareholders to refocus its strategy back to the Company's core strength.

Rory Stear, Executive Chairman of Fieldbury, commented:

"The disposal of Dixie Sales is an important step forward for the Group. We will become a cash backed Investment Company with experienced management and a focused strategy. It is our intention to acquire or take interests in a strongly managed company or business in defined markets where the Directors of Fieldbury can add value and there is good potential to create value for shareholders through capital appreciation."