Amphion Innovations plc Raises £1,857,900

London and New York, 31 December 2008 – Amphion Innovations plc (LSE: AMP) (“Amphion” or the “Company”), the developer of medical and technology businesses, today announces that it has raised £1,857,900 in a convertible promissory note offering for an issue price of £1 per note.

The Notes are convertible between 31 December 2008 to 31 December 2013 into fully paid Ordinary Shares of 1 pence each in the capital of the Company at a conversion price of 18 pence per Ordinary Share and pay interest of 7 per cent annually until conversion. In addition, for each Note issued, the Company also issued 1.11 warrants to each subscriber of the Notes, a ratio of one warrant for every five shares issuable upon conversion. Each warrant will entitle the holder to subscribe for one Ordinary Share at 20 pence per Ordinary Share.

With the prospect of further cash flow from licensing activities from DataTern, Amphion’s wholly owned intellectual property development company, an unleveraged balance sheet, as well as the prospect of realisations from the portfolio in the future, the Company has concluded that it is appropriate to add a modest amount of convertible debt to the balance sheet at this time.

Chief Executive Officer, Richard Morgan, said, “We are pleased to have raised additional capital in the current market environment. Our Partner Companies have continued to make progress and we believe we should see some exciting developments in each of them in the next twelve months. This capital increase will help Amphion to continue to support our companies where necessary and to maintain our ownership position in conformity with our business model.”

Chief Executive Officer, Richard Morgan, has subscribed for £900,000 of the convertible promissory notes. If the Notes were fully converted, Richard Morgan would be beneficially interested in 26,698,211 Ordinary Shares, representing 18.98 per cent of Amphion’s issued Ordinary Share capital.

As a result and in accordance with Rule 13 of the AIM rules, the Directors, independent of the transaction, have consulted with its nominated advisor, Charles Stanley, and consider that the terms of the transactions are fair and reasonable insofar as its shareholders are concerned.

For further information please contact

Amphion Innovations
Charlie Morgan
+1 212 210 6224

Cardew Group
Tim Robertson/ Jamie Milton/ Matthew Law
+44 20 7930 0777

Charles Stanley (Nominated Adviser)
Mark Taylor/ Freddy Crossley
+44 20 7149 6000

About Amphion Innovations plc
Amphion (LSE: AMP) builds shareholder value in high growth companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK. Amphion has significant shareholding in 10 Partner Companies, developing proven technologies targeting substantial commercial marketplaces, each in excess of $1 billion. Each Partner Company is chosen with the goal of achieving an exit valuation in excess of $100 million.

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