RGN Regenesis

    29 August 2008

                              Regenesis Group plc                              

                        ("Regenesis" or the "Company")                         

        Further Re. AGM, Placing, Loan facility and Directorate change         

Background

On 27 June 2008, the Directors announced their intention to seek shareholders'
consent to cancel the trading of the Company's shares on AIM against the
backdrop of tightening credit markets and a disproportionate level of corporate
costs versus the Company's capital base.

Since making this announcement, the Company has been approached by a number of
parties interested in providing solutions to these issues and the AGM convened
to consider, amongst other things, the pending Special Resolutions has been
adjourned on three occasions while the Directors properly evaluated these
opportunities.

The Directors are pleased to announce the following developments.

1. Injection of capital

The Company has today placed 12.5 million new ordinary shares with Merchant
Corporate Limited ("Merchant Corporate") at a price of 0.5 pence per share
("the Placing"), representing 17.3 per cent. of the enlarged issued ordinary
share capital. The new shares will rank pari passu with existing shares. The
resulting capital injection of �62,500 will be used to satisfy existing trading
commitments.

A further sum of �187,500 is also being made available to the Company by way of
a convertible loan from Merchant Corporate, which may be drawn down as to �
60,000 unconditionally and as to �127,500 once two individuals, nominated by
Merchant Corporate and acceptable to the Board, are appointed directors of the
Company. Upon drawdown, the convertible loan, which is unsecured, will carry
interest of 2 per cent. over Barclays Bank Base Rate per annum and Merchant
Corporate will have the ability to convert the loans into ordinary shares at a
price of 0.5 pence per share at any time to the extent that such conversion
would not trigger a mandatory takeover offer for the Company.

Merchant Corporate is owned as to 48 per cent. by Merchant House Group plc, a
company quoted on AIM, and 52 per cent. by its employees.

The Placing is conditional on the retention of the Company's listing on AIM.
Consequently, the adjourned AGM to consider the resolutions to de-list from AIM
and re-register the Company as a private limited company has been adjourned
indefinitely. Accordingly, as the requirement under the AIM Rules that
cancellation of admission to trading on AIM must be approved by not less than
75 per cent. of shareholders voting in general meeting has not been and will
not be met, dealings in the Company's shares on AIM will continue.

Application will be made for 12.5 million new ordinary shares to be admitted to
trading on AIM and dealings are expected to commence on 4 September 2008.

2. Business strategy

The business of the Company will not alter in that the Group will remain
focused on providing short-term asset backed finance. However, the Directors
intend to evaluate the scope for developing this further to possibly include
corporate funding solutions and debt broking under our brand.

3. Management

John Barnacle is retiring from the Board, with immediate effect, but is being
retained by the Company as consultant in order to assist with the collection of
the current loan portfolio. John has been a valuable member of the team and
will leave the Board with a legacy of systems and practices that only his
wealth of experience could have provided. I will become Executive Chairman for
at least the remainder of this year, while new underwriting managers are
integrated with the business.

4. Strategic shareholder support

Once credit markets settle down, the Directors expect to call upon the capital,
experience and contacts of our new shareholder, thus developing Regenesis into
a scaleable player in this industry.

Further enquiries:

Regenesis Group plc                                       Tel: 0161 929 4969
                                                                            
Marc Duschenes                                                              
                                                                            
John East & Partners Limited                              Tel: 020 7628 2200
                                                                            
John East/David Worlidge                                                    



END

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