Notice of AGM/Business update

RNS Number:0294C
Screen FX PLC
14 August 2007




Press Release                                                    14 August 2007



                                  ScreenFX plc



                          ("ScreenFX" or "the Group")



          Notice of AGM, strategic business update and further funding



ScreenFX plc (AIM:SFX), the digital advertising and communications specialist,
confirms that the Group's Annual General Meeting will be held at the offices of
Halliwells LLP, 1 Threadneedle Street, London, EC2R 8AY on 5 September 2007 at
12:30pm.



Business and funding update

The Group has received interest in its recently announced National Advertising
Sales Agreement tender process.  Combined with the recent progress of a new
performance-driven local sales model, the Group therefore announces that the
non-binding indication of interest with a major advertising company, as
announced on 15 May 2007, has concluded and the Group will not be continuing
talks in this regard.



Instead the Group will look to grow from its current 22 operating malls to the
next 20 malls with whom it has firm commitments, taking the total to 42.  The
Group has a further 40 malls in the pipeline.  As such, the Group is forecasting
to have in excess of 60 malls installed by the end of 2008 which will deliver
advertisers a means to access a total footfall of approximately one billion
people per annum.



In order to cover operating expenses during this process, and to implement
adjustments to the business model that are projected to bring the Group into
reporting an operating profit by the end of 2008, the Group is seeking further
funding by way of debt or equity of a minimum sum of #2.5 million plus costs.
The Group has already secured indications of support in principle from certain
existing institutional shareholders for #1.25 million towards the total needed.
Approval needed for the further share placing is to be sought at the AGM with
the Admission of the new ordinary shares expected to take place on 11 September
2007.



The Group also announces its intention to seek shareholder approval at the AGM
for the consolidation of its ordinary shares.  In the proposed consolidation,
100 old shares of ScreenFX common stock, with a value 0.1 pence each, will be
exchanged for one new share, with a value of 10 pence each.  Every 100 deferred
shares of 0.1 pence each will also be exchanged for one new deferred share of 10
pence each.



The Directors will be underwriting the initial operating expenses of #125,000
during the early stages of the fund raising process by way of secured loans
which will be converted post the fund raising into equity along with other
Director and adviser loans which total a further #472,000.



Mike Cottman, Executive Chairman of ScreenFX, commented: "The delivery of
top-line sales revenue, combined with the significantly reduced overheads should
deliver a strong and valuable mall business in the future."



                                    - Ends -



For further information:
ScreenFX plc
Mike Cottman, Executive Chairman                      Tel: [phone]
[e-mail]                                             www.screenfx.com


Seymour Pierce Limited
Stuart Lane / John Depasquale, Corporate Finance      Tel: [phone]
[e-mail]                              www.seymourpierce.com



Media enquiries:
Abchurch
Henry Harrison-Topham / Gareth Mead                   Tel: [phone]
[e-mail]                              www.abchurch-group.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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