Commencement of Legal Proceedings

M Winkworth plc ("Winkworth" or the "Company") announces that, following receipt of independent legal advice, yesterday it issued proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Business List (ChD), against Simon Agace, the Company's Non-Executive Chair.

The proceedings relate to alleged breaches of confidentiality, certain provisions of the relationship agreement entered into between the Company and Simon Agace on 5 November 2009, and associated duties as a director under the Companies Act 2006.

As part of the proceedings, the Company has applied for interim injunctive relief concerning proposed changes to the composition of the Board and the use and disclosure of the Company's confidential information. The Company has also sought information concerning the disclosure of its confidential information to third parties.

The allegations have not been determined by the Court and no determination has yet been made in relation to the Company's application for interim relief.

The decision to commence the proceedings was approved by the directors entitled to participate in the decision, following receipt of independent legal advice.

The Company's business continues to operate as usual and the executive team remains focused on the delivery of the Company's strategy. The Company will provide further updates as appropriate.