Settlement

    RNS Number : 2990D
  Playgolf (Holdings) PLC
  12 September 2008
   





    Playgolf (Holdings) plc

    12 September 2008
    Playgolf (Holdings) plc

    ("Playgolf" or "the Company")


    Further to our announcement of 22 July 2008 the Board of Playgolf, the developer and operator of multi-sport facilities in the UK,
announces today that the Company and its bankers have reached a settlement with the Kilmartin Property Group Ltd ("Kilmartin") concerning
the Company's joint venture with Kilmartin, Playgolf Kilmartin Limited, at the East Kilbride development. For the financial year to 31
December 2007, Playgolf Kilmartin Limited recorded a loss of £76,135 and had net assets of £1.92 million. Under the terms of the settlement
Playgolf has sold its shareholding in the joint venture to Kilmartin for a cash payment of £500,000 and received repayment of an
intercompany loan of £190,880. The cash proceeds from the sale will be used to strengthen the Company's balance sheet.

    We are also pleased to announce that the Company has signed a 15 year lease to operate the golf course, golf academy and driving range
at the East Kilbride site. 

    The Company remains fully committed to the success of the project and will be actively working with Kilmartin to promote and let the
development. 


    - ends -



    Contacts:

    
 Mike Mealey                                            
 Playgolf (Holdings) plc                   01926 422 320
                                                        
 Paul Shackleton/Tessa Smith                            
 Daniel Stewart & Company plc              020 7776 6550
                                                        
 Mark Longson                                           
 Square1 Consulting Ltd                    020 7929 5599





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