New Activity / Funds raised

RNS Number:3414H
Tecteon PLC
09 November 2007

                                  TECTEON PLC

                                  Announcement

                     New Activity / Additional Funds Raised


Tecteon PLC ("Tecteon" or "the Company"), the provider of voice quality, comfort
listening and hearing protection technologies and solutions, announces that it
has agreed to enter into a new joint venture ("the Transaction") with Zamcu, a
company controlled by Minerale Afrique Limited, which holds the licence to
recover 18,000 tons per month of ores including copper, zinc and lead in Zambia
and their transportation to South Africa for sale.

Since the Transaction involves the commencement of a new strategy for the
Company the Board has elected to make the Transaction subject to the approval of
the Company's shareholders. The Directors intend the signing of the joint
venture to be the first stage in the development of the Company as a trader in
and processor of base metals and a circular convening a general meeting of the
Company to approve the Transaction will be posted to shareholders in due course.

The proposed joint venture between Tecteon and Zamcu will involve the financing
and off take of copper, zinc and lead for sale in China. The directors of
Tecteon expect approximately 3,000 to 6,000 tons of copper to be financed and
sold per month and 3,000 tons of both zinc and lead.  Tecteon and Zamcu will be
entitled to share of the profits from the joint venture's trading activities on
the basis of 60% / 40% respectively.

In order to provide the finance for this new activity and provide additional
working capital for the existing voice quality technologies business, the
Directors have agreed to take an unsecured loan of #300,000 from Quazer Group
Corporation, ("the Lender").

The loan from the Lender carries interest at the rate of 8% per annum and is
repayable on 31 October 2008 unless converted before then, at the option of
either party, in whole or in part into new Ordinary Shares of Tecteon plc at a
conversion price of 1 ordinary share for each 1p of loan converted.

In addition, the Lender is entitled to subscribe for one Warrant for every
Ordinary share so converted by paying 1p per Warrant.  The exercise price of the
Warrants will be 1p per share and the warrants will expire one year after issue.

                                                               9th November 2007
For further  information please contact:

Tecteon PLC                                           Tel: [phone]
Masoud Alikhani, Chairman                             http://www.tecteon.com

Seymour Pierce Ltd                                    Tel: [phone]
Jonathan Wright


ENDS




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