Sale of Lowlife Brand

    RNS Number : 7559F
  EBTM PLC
  14 October 2008
   


    EBTM plc ("EBTM" or "the Company")

    Sale of Lowlife Brand 


    EBTM plc, the vertically integrated online retailer and wholesaler of music inspired fashion, today announces the sale of its Lowlife
accessory brand to Plus Brands Ltd ("Plus Brands").  EBTM will retain exclusive, perpetual distribution rights for the Lowlife brand in the
UK on favourable commercial terms.  

    The sale of the Lowlife brand is part of a restructuring of the wholesale business to improve efficiency and enhance margins. The
reduction in overhead, partly resulting from the sale, is expected to result in annualised total savings of approximately £600,000. With the
uncertainty amongst UK High Street retailers, wholesale revenues will be lower than previously expected. However, the restructuring of this
division has been implemented to maintain the expected profitability of the group.  

    EBTM purchased the Lowlife brand as part of the acquisition in May 2007 of Lowlife Corporation Ltd, the wholesaler of music inspired
clothing and accessories.  No specific valuation has been placed on the brand previously as the revenue contribution from Lowlife branded
sales is not material in group terms. 

    The Company will receive a cash consideration of £200,000 from the sale.  Furthermore, Plus Brands will pay additional deferred
consideration of 20% of global sales revenue of the Lowlife brand in excess of £500,000 in 2009, up to a cap of £100,000.  

    Plus Brands is owned by Dale Masters, Lowlife Corporation's founder, a former director of EBTM and a major shareholder of EBTM.  As part
of the agreement, Mr & Mrs Masters' shareholding of 21,898,696 shares, representing 8.1 per cent. of the Company's issued share capital will
be subject to lock-in arrangements for the next 12 months. 

    Owing to Dale Masters having served on the EBTM board in the last 12 months, the sale of the Lowlife brand to Plus Brands is classified
as a related party transaction under the AIM rules.  The Directors of EBTM, having consulted with their nominated adviser, Blue Oar
Securities Plc, consider the terms of the sale to be fair and reasonable insofar as its shareholders are concerned. 

    Richard Breeden, commented, " The sale of this non core asset strengthens our balance sheet and will allow us to invest further in the
online side of the business which, despite the broader retail market conditions, is experiencing record sales conversions." 

    END


    For further information, please contact:
       

 EBTM plc                020 7819 1950
 Richard Breeden, Chief
 Executive

 Blue Oar Securities     020 7448 4400
 Andrew Raca/Jerry Keen

 Biddicks                020 7448 1000
 ZoBiddick



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