US$3m Financing

RNS Number:2529C
AeroBox plc
02 May 2006

2 May 2006



                                  Aerobox plc

                         ("Aerobox" and "the Company")



               US$3 million financing agreed for sales expansion



Aerobox announces that its US subsidiaries Brookspey Investments Inc ("Brookspey
"), AeroBox Composite Structures LLC ("ACS"), UniversalCore LLC ("UniversalCore
") and OvoCorp LLC ("OvoCorp" and, together with Brookspey, ACS and
UniversalCore, the "Companies") have entered into a US$3 million three year
secured revolving loan agreement with Laurus Master Fund, Ltd. ("Laurus").
Laurus is a Cayman Islands company that provides financing to small cap growth
companies.  Laurus will manage the facility through Laurus Capital Management,
LLC, a Delaware limited liability company, which is based in New York.



The funds will assist the Companies in funding their working capital needs.



The US$3 million facility will be made available based on certain assets of the
Companies.  The Companies are not bound by any financial covenants and Laurus is
charging interest on any outstanding amount at a rate of 2% per annum above the
Wall Street Journal prime rate. Aerobox is required to maintain a minimum net
worth of an acceptable level based on it's reported past financial results.  The
Companies have the right to re-pay the loan at any time on 30 days written
notice, subject to early termination fees.



Aerobox has issued two options to Laurus to subscribe for new ordinary shares of
Aerobox.  The first option may be exercised for up to 26,143,791 of Aerobox's
new ordinary shares at an exercise price of 6.375p (this option is currently
subject to a maximum exercise cap of 20,961,198 ordinary shares pending passing
of appropriate resolutions at Aerobox's forthcoming AGM).  Laurus may only
exercise this first option to the extent there is debt outstanding under the
revolving loan facility and has the right to demand repayment of the revolving
loan facility to fund its payment of the exercise price under the first option.
The second option may be exercised by Laurus to subscribe for up to 8,510,638
new ordinary shares in Aerobox at an exercise price of 6.75p.  The options are
exercisable at any time until 28 April 2013. Under the terms of each option,
Laurus agrees not to hold more than 2.99% of the Company's issued share capital
at any one time.  In addition, Laurus has warranted that it will not engage in "
short selling" of the Company's ordinary shares.



Additionally, as part of implementing the facility, Aerobox has granted, subject
to shareholder approval, options to Able Global Partners ("Able") to subscribe
for 522,876 new ordinary shares in the Company at an exercise price of 6.75p.
The options granted to Able are exercisable at any time until 28 April 2011.



Ray Gibbs, Group Managing Director commented:

"I am delighted that we have been able to demonstrate the financial viability of
our business to Laurus. The growth being experienced initially in the ULD sector
requires careful managing and finance. The revolving debt facility can be used
to enable us to satisfy the working capital needs for both our existing and
expected order book in both the ULD and core and panel operations for the
foreseable future.



Aerobox expects to announce its financial results for the year to 31 December
2005 by the middle of May."



                                    - ends -





Enquiries:



Ray Gibbs,           Group Managing Director, AeroBox plc    [phone]
Trevor Phillips  Holborn                                     [phone]
Jonathan Wright      Seymour Pierce                          [phone]





Notes to Editors

The AeroBox air cargo container is the result of a decade of research and
development into composite structure panels. The strength and thermal resistance
of the AeroplazTM thermoplastic composite panels enables AeroBox to develop
custom made solutions for a wide range of applications in the aviation,
automotive and other industries. The unique construction of AeroplazTM provides
for improved strength and durability that can reduce costly repairs by over 90%
as well as improving reliability, utilisation and safety. The AeroBox has now
flown over 90,000 flights in commercial airlines around the globe, with a little
more than 100 reported repairs.






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