EAGLE EYE : THREE OR THIRTY PENCE?

RNS Number:9896V
Eagle Eye Telematics PLC
20 December 2005


Eagle Eye Telematics

20 December 2005

Eagle Eye Telematics plc (the "Company"), the supplier of vehicle telematics
technology, asset management and security solutions, announces that the Company
has entered into a loan agreement with (i) a company under the control of Melvin
Lawson ("ML") and, (ii) Ralph Stross and Terry Krell, non executive directors of
the Company, which will provide the Company with additional working capital
facilities. The Company has also entered into a share option agreement with ML.
If the share options are fully exercised, the aggregate additional working
capital available would be up to approximately #1.78 million.

The loan agreement

The loan agreement will give the Company access to a loan facility of up to
#600,000 from ML. The initial tranche of such facility of #100,000 will be
provided no later than 6 January 2006 and full drawdown of such facility must be
achieved within 12 months of the date of the loan agreement. Such loan shall be
repaid on the earlier of a change of control of the Company or the fifth
anniversary of the agreement.

The loan agreement will also give the Company access to a loan of #220,000 from
Ralph Stross and Terry Krell. Such loan will be provided no later than 28
February 2006, and is repayable by 30 June 2007.

Both loans will bear interest at the same rate as charged by the Royal Bank of
Scotland in respect of the Company's overdraft facility currently 6.0 per cent.
per annum.

The directors of the Company (other than Ralph Stross and Terry Krell) consider,
having consulted with its nominated adviser, WH Ireland Limited, that the terms
of the agreement are fair and reasonable insofar as its shareholders are
concerned.

The share option agreement

The Company has also agreed to grant ML options to acquire ordinary shares of
0.1 pence each in the capital of the Company ("Ordinary Shares") on the
following terms:


Number of Ordinary Shares Exercise price per Ordinary Expiry date
Share (p)


25,000,000 1.75 30 June 2006

19,000,000 2.75 31 December 2006

16,000,000 3.75 30 June 2007


If exercised in full, and assuming no other Ordinary Shares are issued by the
Company, ML would hold 60,000,000 Ordinary Shares, representing 29.8 per cent.
of the enlarged issued share capital of the Company.

Commenting on the transaction, Andrew Hunter, Chief Executive, said:

"We are delighted to complete this deal with Melvin Lawson. These additional
funds will enable the Company to accelerate its growth plans as a leading
telematics services provider to the European fleet and commercial vehicle
markets. These funds will strengthen our sales and marketing capability and
enable us to further develop key partnerships across the automotive services
sector."

Melvin Lawson added:

"Eagle Eye trades in a market that I believe is entering a period of substantial
growth in the coming years. I believe the Company is well positioned to take
advantage of its technology and applications strengths to become a major force
in the telematics sector."


Further information:

Andrew Hunter (Eagle Eye Telematics) 01928 795400

David Youngman (WH Ireland) 0161 832 2174


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