SFX Screen Fx

RNS Number:6534E
Screen FX PLC
28 September 2007


Press Release                                                 28 September 2007

                                  ScreenFX plc

                          ("ScreenFX" or "the Group")

                Restoration of Trading on AIM and Funding Update

Following the announcement of 4 September 2007, ScreenFX plc (AIM:SFX), the
digital advertising and communications specialist, announces that it has secured
#600,000 of further funding with an additional #330,000 by way of a convertible
loan which is expected to be received within two weeks.  Subsequently the Group
has requested the restoration of trading of its shares on AIM with effect from
28 September 2007.

The Group has raised a sum of #600,000 from institutional investors in exchange
for the issue of 150,000,000 new Ordinary Shares at a price of 0.4 pence per
share, plus share warrants on a one for three basis at a price of 0.25 pence.
In addition, the Group has entered into heads of terms to raise #330,000 in the
form of a convertible loan ("Loan") from Trafalgar Capital Specialised
Investment Fund.  It is anticipated that legal agreements will be agreed and
signed, and the proceeds of the Loan will be received by the Company within two
weeks.  As a consequence, the Directors (Eric Anstee and Mike Cottman) and
advisers have agreed to convert existing loans ("Conversion"), premiums and
associated interest of approximately #600,000 into equity on the same terms as
the institutional investors.  David Clarke (being the only independent Director)
considers, having consulted with Seymour Pierce, that the terms of the
Conversion are fair and reasonable insofar as the shareholders of the Company
are concerned.   These transactions will provide the Group with total new equity
of #1.2 million and loans totalling #330,000.

Furthermore, the Group has also reached an agreement, in principle, to sell its
TrainFX franchise for the sum of #2 million in cash.  This transaction is
subject to due diligence, the necessary approvals, fundraising by the acquiring
group, and the signing of the finalised contract.  In the event that the
disposal of TrainFX does not proceed within three months, the Company will need
to raise #2 million in order to continue trading.

Application has been made to the London Stock Exchange for the 150,000,000 new
Ordinary Shares, the subject of the institutional placing, to be admitted to
AIM, which is expected to become effective at 8.00a.m. on 28 September 2007.

Mike Cottman, Executive Chairman of ScreenFX, commented: "The proceeds of the
current fund raising and receipt of the #330,000 will provide us with the
necessary working capital to reach a point whereby we can complete the TrainFX
transaction.  This in turn will allow us to continue to grow our malls business
successfully.  We expect to complete this transaction within a three month
period.  The confidence and support shown by our institutional investors has
been encouraging during this period of reconstruction, and now we can look to
the future to deliver a stronger, more valuable mall business."


                                    - Ends -


For further information:
ScreenFX plc
Mike Cottman, Executive Chairman                       Tel: +44 (0) 161 428 5544
mikec@screenfx.com                                              www.screenfx.com

Seymour Pierce Limited
Stuart Lane / John Depasquale, Corporate Finance       Tel: +44 (0) 20 7107 8000
stuartlane@seymourpierce.com                               www.seymourpierce.com

Media enquiries:
Abchurch
Henry Harrison-Topham / Gareth Mead                    Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com                               www.abchurch-group.com


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