Suspension of shares and trading update

    Suspension of shares and trading update
             



                             Hat Pin plc

           Suspension of shares on AIM and trading update

On 21 January 2008, the Board of Hat Pin plc ("Hat Pin" or "the
Company") announced that Group profits for the financial year ended
31 December 2007 were anticipated to be around 25% below market
expectations.
Since then various accounting errors have come to light in one
subsidiary, which are likely to cause the 2007 results to be
materially worse than previously indicated.  There is no suggestion
or evidence of fraud, or wilful deceit. The exact outcome for 2007
will not be known until completion of the ongoing audit. In the
circumstances, the Company has requested, and the London Stock
Exchange has confirmed, an immediate suspension in the trading of the
Ordinary shares of the Company on the AIM Market of the London Stock
Exchange. It is envisaged that trading on AIM in the Ordinary Shares
will re-commence on the date of the announcement of the preliminary
results.

The Board believes that the underlying trading position of its three
operating businesses is still fundamentally sound.

Discussions have been initiated with the Company's principal bank
regarding the Group's ongoing facilities.  The bank has indicated
that it wishes to continue to provide facilities, subject to the
audit providing satisfactory answers to certain questions that have
been raised by the bank.  The Board believes that such answers will
be forthcoming.

The Hat Pin Chief Executive and Finance Director have indicated their
intention to resign on the date of the announcement of the
preliminary results.

Terry Hitchcock, currently Non-Executive Chairman, has assumed the
role of Executive Chairman with immediate effect.

For further information:

Hat Pin plc
Terry Hitchcock
[phone]

Arden Partners plc
Steve Douglas
[phone]

The Hogarth Partnership
Julian Walker
[phone]

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