AIM MARKET

"AIM is the most successful growth market in the world for small companies. 2,587 UK companies and 519 international companies have been admitted to the AIM market since the Market's launch in 1995 (up to end of February 2010). A total of £66,142 million has been raised in total; £33,105 million in initial public offers and £33,037 million in further fundraisings.

The number of international companies joining AIM has increased sevenfold since 2000 from 31 to 238 in February 2010. In 2008 and 2009 around 24% and 17% of new admissions were international companies respectively. 18.7% of companies currently listed are classed as international companies.

The fallout from the global credit crisis and resultant market uncertainties has had an impact on AIM, like all other global markets. The number of new admissions fell dramatically to 114 in 2008 and just 36 in 2009 from 284 in 2007 (and a peak of 519 in 2005). Up to the end of February 2010, 8 companies (7 UK and 1 international) have been admitted to AIM. This remarkably quiet period in terms of new admissions and levels of funds raised reflects global trends in the general economic downturn. The directors believe that there must be a significant amount of pent up demand as companies that are well positioned to go to market wait for market sentiment to recover.

Indeed, the AIM Market staged an impressive recovery in 2009 after a terrible 2008 when investors exited on mass as liquidity fears struck. After falling 62% in 2008, the market rose 66% in 2009, meaning that it significantly outperformed the FTSE All-Share's increase of 25% over the same period. This recovery has continued into 2010 with AIM up by around a further 5% by the beginning of February while the FTSE is down by a similar amount. Such a recovery supports the Director's view that the number of admissions will increase as global economies rebound although AIM Investments will be operating in a climate in which company valuations will be forced to be more conservative and resultant share prices lower. This can be viewed as a good time to buy into the markets, with the likelihood of increases in share prices as markets recover."