CentralNic Group PLC admission to trading on AIM

London, 2 September, 2013 — CentralNic Group PLC ("CentralNic" or "the Company"), an internet registry service provider which derives revenues from the sale of internet domain names (such as avon.uk.com), is pleased to announce that dealings in its shares on AIM will commence today following a placing and vendor placing at 55p per share, raising a total of £7 million before expenses. Zeus Capital Limited is the Nominated Adviser and Broker to the Company.

Placing details

Trading will commence on AIM on 02 September 2013 (ticker symbol AIM: CNIC). The Company's admission document can be found at www.centralnic.com.

Placing price

55p

Number of new ordinary shares placed

9,090,909

Number of vendor ordinary shares placed

3,636,364

Number of ordinary shares in issue following admission

59,090,909

Gross proceeds of the placing for the Group

£5,000,000

Gross proceeds of vendor placing for Shareholders

£2,000,000

Proportion of the Enlarged Share Capital being placed

15.38%

Market capitalisation at the placing price on admission

£32,500,000

Overview of CentralNic

CentralNic

Market Opportunity

Following recent industry developments and regulatory changes, CentralNic expects, by virtue of its contracts and existing technical and distribution infrastructure, to benefit from a major expansion in the number of generic top level domains ("gTLDs") such as .wiki and .college, which are expected to start operating from the end of 2013.

The Directors believe that the funds raised for the Group by the placing of shares will allow the Group to enhance its global distribution network, acquire interests in new gTLDs, expand its own retail business and obtain contracts from governments to operate their country code TLDs ("ccTLDs"), especially in developing markets.

The existing business has already proven to be profitable and cash-generative, as its characteristics include:


Strategy

The Company has a four pronged expansion strategy:

  1. Increasing volumes through provision of core registry services;
  2. Investment in new gTLDs;
  3. Investment in Registrar business; and,
  4. Developing Markets

CentralNic has also identified opportunities to add to its domain portfolio by winning government contracts to operate country codes for developing nations. These ccTLDs can be distributed globally via CentralNic's retail network, as well as serving the populations of the domestic emerging markets where internet penetration is just starting to explode.

Commenting on the Company's proposed admission to AIM, Ben Crawford, CEO of CentralNic, said:

"The Board is delighted with the Company's successful admission to AIM. The response from investors to the IPO has reaffirmed our belief that CentralNic is a very attractive investment proposition, and the Company now has the funds in place to take advantage of additional opportunities to win new TLD contracts. We look forward to the next stage of growth and the launch of the new portfolio of TLDs which CentralNic will be servicing."


For further information, please contact:

CentralNic Group Plc

Ben Crawford, Chief executive officer

+44203 388 0600
Zeus Capital

Ross Andrews, Nick Cowles (Corporate Finance)

+44161 831 1512

John Goold (Institutional Sales)

+44207 533 7716
Bell Pottinger

David Rydell, Charles Goodwin, Guy Scarborough

+44207 861 3232

About CentralNic

CentralNic Limited, a wholly owned subsidiary of the Company, is a registry service provider, which derives revenues from the sale of internet domain names. CentralNic Limited uses its in-house developed IT platform to distribute its own portfolio of domain names to a global network of "registrars" (retailers such as Network Solutions LLC), which sell these to end users. It also uses this platform to sell domain names owned by third parties, normally on a revenue share basis.

Following recent industry developments and regulatory changes, CentralNic Limited expects, by virtue of its contracts and technical infrastructure, to benefit from a major expansion in the number of generic top level domains ("gTLDs") such as .wiki and .college, expected to operate from the end of 2013.

The Directors believe that the funds raised for the Group by the Placing will allow the Group to enhance its global distribution network, acquire interests in new gTLDs, expand its own retail business and obtain contracts from governments to operate their country code TLDs ("ccTLDs"), especially in developing markets.


New Top Level Domains

In early 2012, after seven years of policy making, the Governing Body ICANN (The Internet Corporation for Assigned Names and Numbers) triggered the biggest change to the internet since its inception, by opening the application process for a new round of gTLDs, primarily to introduce more competition to the marketplace and expand customer choice. This change will also enable brands, corporations and governments to run their own domains.

Examples of gTLDs that have been applied for include .law and .wiki, as well as brand-specific TLDs such as .theguardian.

CentralNic has won contracts to act as Registry Service Provider for 60 gTLD applications, with clients including global 1000 companies, global leaders in the media and entertainment industry, and entrepreneurs in the US, Latin America, Europe and Asia.