Strategic Review

THIS IS AN ANNOUNCEMENT UNDER RULES 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "TAKEOVER CODE") AND IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION BY ANY PARTY TO MAKE AN OFFER UNDER RULE 2.7 OF THE TAKEOVER CODE. THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE FOR TOUCHSTAR PLC, NOR AS TO THE TERMS ON WHICH ANY OFFER MAY BE MADE.

Touchstar plc

Strategic review

Touchstar plc ((AIM: TST) "Touchstar", the "Company" or the "Group"), suppliers of mobile data computing solutions and managed services to a variety of industrial sectors, announces that the Board will be conducting a strategic review of the Company to identify the optimal path for future growth and value creation for its Shareholders. This review will explore various options, including a potential sale of the Company, its assets or other relevant transactions.

The Company has over time been approached by various parties about possible mergers, alliances or sale of all or parts of the business. To date these have been received and considered on an ad hoc basis. The Board now feels it is in shareholders' interests to the consider the Company's options more formally and openly.

The objective of the strategic review will be to ascertain the right path for the business, one that enables shareholder value to be fully reflected, gives opportunity to employees, and serves customers well.

The Board believe that Touchstar has demonstrably a high quality of earnings, considerable growth potential and a proven record of cash generation. The long-term growth strategy and prospects of the business remain positive, and we are continuing to invest to support that growth.

The Company is not currently in talks with any potential offeror and is not in receipt of any approach in regard to an offer. There can be no certainty that a transaction will be pursued by the Company, nor as to the terms of any eventual transaction.

Zeus Capital Limited is acting as Lead Financial Adviser, Nominated Adviser and Broker to the Company in relation to the strategic review.

Takeover Code notes

The Takeover Panel Executive has granted a dispensation from the requirement of Rule 2.4 (a) and (b) of the Takeover Code such that Touchstar is not required to identify any potential offeror which Touchstar subsequently refers to the existence of in an announcement unless that potential offeror has been specifically identified in any rumour or speculation.

Notice related to financial adviser

Zeus Capital Limited ("Zeus") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting as [financial adviser], nominated adviser and broker exclusively for Touchstar and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Touchstar for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

Rule 26.1 disclosure

Rule 2.9 information

Notice to overseas investors