Placing and notice of EGM

Bright Things plc 02 March 2005 Bright Things PLC ('Bright Things' or the 'Company') Conditional Placing and Notice of Extraordinary General Meeting The Company announces that it is proposing to raise £6 million before expenses by a placing of 4,000,000 new Ordinary Shares (the 'Placing Shares') at 150p per Ordinary Share (the 'Placing Price'). Corporate Synergy Plc, as agent for the Company, has agreed to use its reasonable endeavours to place the Placing Shares at the Placing Price with institutional and other investors, subject to inter alia the passing of a resolution at the Extraordinary General Meeting convened to permit the placing to proceed, and the Placing Shares being admitted to trading on AIM. The Placing Price represents a discount of 14.53 per cent. to the closing mid market price of 175.5p on AIM as at 1 March 2005, the date of publication of the EGM circular to shareholders in the Company. The Placing Shares will, when issued and fully paid, rank pari passu in all respects with the existing issued Ordinary Shares. Application will be made for the Placing Shares to be admitted to trading on AIM and trading in the Placing Shares is expected to commence on 29 March 2005. Reasons for the Placing The Company was admitted to AIM in April 2004, raising £4.5 million before expenses. The funds raised at admission were set aside to assist the Company in the development of both its hardware and software, to secure licensing agreements, on which the software is to be based, and to provide the Company with ongoing working capital. Since admission, the Company has developed a working prototype of Bubble (its remote control device that transforms a DVD player into an interactive educational games device) and anticipates having a production model available shortly. In addition, the Company has entered into licensing agreements securing licences to characters such as Thomas & Friends(TM), The Teletubbies(TM) and Postman Pat(R). The Company is in the final stages of developing 6 working games using a number of these characters. The Company has also entered into a three year distribution agreement with Bandai UK Ltd covering the UK and the Republic of Ireland, under which Bandai has agreed to purchase from Bright Things a minimum of 100,000 Bubble consoles and 200,000 units of associated software in the first year. The Company is pleased with the progress it has made to date. The Company is now proposing to raise £6 million, before expenses, and intends to apply the funds as follows: Software development - Since the Company's admission to AIM, it has secured licensing agreements over more characters than was originally anticipated and therefore intends to use approximately £1.8 million to develop new software products for use with Bubble; Software localisation and translation - Approximately £2.5 million will be used for software development based on indigenous licenses in certain export markets and to localise the Company's existing software; and Balance sheet stability - the balance of the funds will be used to strengthen the Company's balance sheet. Dominic Wheatley, chief executive officer of the Company commented: 'We are pleased to have raised additional funds for the Company pursuant to the Placing, which will assist us in the development of the business'. For further information please contact: Justin Lewis, John Prior, Corporate Synergy Plc: 0207 626 2244 Giles Croot, Brunswick Group: 020 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange