Proposed Cancellation and Notice of GM

    For immediate release: 25 November 2008

 

                       Equity Special Situations Limited                       

                           ("ESS" or the "Company")                            

  Proposed Cancellation of Admission to Trading on AIM and Notice of General   
                                    Meeting                                    

The Directors of Equity Special Situations Limited (AIM: EQS) announce that
they have resolved to seek shareholder approval to cancel the admission of the
ordinary shares in the Company to trading on AIM (the "Cancellation").

A circular will be dispatched to shareholders today, which provides the
background to and details of the proposed Cancellation. The main points are set
out below:

  * On 10 October 2008 the Board announced that ESS had been granted an interim
    injunction against Landsbanki and its agents, under which Landsbanki was
    prohibited from attempting to sell certain shares owned by ESS which were
    held at Landsbanki as security for a long term loan facility with ESS. The
    Company subsequently filed a legal claim against Landsbanki on 24 October
    2008 and has been in discussions with certain creditors and other debt
    providers;
   
  * Unfortunately, the Board has not yet been able to clarify the status of
    assets held by Landsbanki and the Board does not believe that this
    situation is likely to be resolved in the short term, although steps are
    being taken to recover the assets;
   
  * The proposed Cancellation forms part of the Board's strategy of focusing on
    maximising the Company's cash realisation to ensure that the Company meets
    its obligations to its creditors and to maximise potential returns for
    Shareholders. The Board believes this can best be achieved by continuing
    the Company's claims against Landsbanki and others and by disposing of the
    Company's investments in a timely manner rather than on a forced timetable;
    and
   
  * The Board believes that the Company will be best positioned to pursue its
    strategy as an unquoted company.
   
The Board of the Company has accordingly convened a General Meeting to be held
at 10 a.m. on 9 December 2008 at Martello Court, Admiral Park, St Peter Port,
Guernsey GY1 3HB at which Shareholders will be asked to consider a Special
Resolution to approve the application by the Company to the London Stock
Exchange plc for the Cancellation.

If approved by the Company's Shareholders at the General Meeting, the expected
date of the Cancellation will be 24 December 2008.

Following the Cancellation all Ordinary Shares will still be capable of being
held and transferred in CREST.

A copy of the circular will be available to download at the Company's website:
www.equityspecialsituations.com.

Trading in the Company's shares will remain suspended pending clarification of
the status of certain of its investments.

                                   - Ends -                                    

Further information:

Equity Special Situations Ltd

Peter Griffin [phone]

Evolution Securities Limited

Jeremy Ellis [phone]

GTH Communications

Toby Hall [phone]



END