RNS Number : 4879X
  Argentvive PLC
  25 June 2008
   


    ARGENTVIVE PLC
    ("ArgentVive" or "the Group")

    Completion of strategic operational review
    Disposal of non-core assets

    Further to the announcement of 9 June 2008, the ArgentVive board has now completed its strategic operational review and has considered
further the opportunities for each of the various businesses within the Group.

    The Group's strategy has been to acquire or incubate businesses that are scalable with added management expertise or working capital
injections. Many of the businesses within the Group are still at their early stages of development and it is clear that, while a number of
these businesses and activities hold promise for the future, they will require significant further financial support in order for them to
finalise their development programmes. This is particularly the case in regard to those in their early development phase. 

    The Board have made the strategic decision to focus on the core and immediately profitable businesses within the Group. At the same time
ArgentVive intends to dispose of a number of the Group's non-core assets.

    Solcara 
    The most established and profitable of the businesses within the Group is Solcara which was acquired for a total consideration of �4.5
million January 2008. 

    Solcara has market leading technology that enables it to deliver innovative software products in the areas Search Technology, Reputation
Management, and Business Continuity. Solcara has an established management team and a stable client base comprised mainly of blue chip
companies in the Commercial, Legal and Professional, Financial Services and Government sectors. 

    Sales activity has increased since Solcara was acquired and it is expected that Solcara will continue to be profitable at the
operational level in the current year. The Board believes that Solcara has potential for significant growth in the short to medium term. The
change in strategy and disposal of non core assets will enable the Group's attention to be concentrated on supporting the growth plans of
Solcara. 

    Waterside Book Services
    The Group has invested in the expansion of the management team within Waterside.   Julian Rivers, previously CEO of Bertram's, has been
appointed as Chairman of Waterside. Waterside is performing in line with expectations. 

    retailOn (formerly known as AuctionAssist)
    AuctionAssist, which was acquired in August 2007, has undergone a major restructuring programme including the introduction of a new
management team, implementation of a robust eCommerce platform and a rebranding exercise; as a result of this the company has been renamed
RetailOn Limited. It was announced on 18 December 2007 that a strategic partnership with iForce Limited had been entered into to conduct
trials. This strategic partnership will not be pursued but a trading relationship with iForce will continue. Trading arrangements with new
partners are now in progress and encouraging initial results have been achieved. retailOn's future development will be closely monitored.

    Retail8
    The recent launch of BookRabbit has been very well received. While initial uptake has been positive, the revenue model is as yet
unproven and the business requires working capital properly to fund its marketing and development activities. 
    
Initial expressions of interest have been received regarding the possible acquisition of the ecommerce elements of Retail8 from a number of
companies operating in this area. A further announcement will be made when appropriate.

    Advance Warning
    Advance Warning, a B2B social networking development company, was acquired in November 2007 for an initial consideration of �300,000
through the issue of 616,016 new ordinary shares. The additional deferred consideration has not been paid. Advance Warning has experienced
difficulties in increasing its customer base and the Board has decided to exit the business. Discussions are in hand to dispose to the
original owners.  

    Reverse Auction Platform
    The Reverse Auction platform is a project derived from AuctionAssist.  This project is at a very early stage of development and, whilst
there have been an expressions of interest in the technology, there is no certainty that any of these discussions will lead to a sustainable
revenue model within an acceptable time frame.

    The Board, with the exception of Charles Denton, have agreed terms whereby Charles Denton will purchase certain assets linked to the
Reverse Auction project and accept the transfer of related staff. 

    Under the proposal, Charles Denton will pay �500,000 in cash on completion for the assets of the Reverse Auction project and the Group
will receive a 24% shareholding in the acquisition vehicle as additional consideration. It is anticipated that Charles Denton and the
Reverse Auction management team will seek additional third party funding for the development of the Reverse Auction platform. Following the
disposal it is anticipated that ArgentVive will receive anti-dilution rights such that the Group's shareholding in Reverse Auction shall, at
all times, remain identical in proportion to that of Charles Denton. 

    Given the size and nature of the transaction, the proposal will be recommended by the ArgentVive Board (excluding Charles Denton) and
will result in an injection of �500,000 into the Group. The proposal will also require approval by ArgentVive shareholders. 

    ArgentVive will not have board representation on the acquisition vehicle used to acquire the assets of the Reverse Auction project and
will not be involved in the management of the business. Charles Denton will also give certain undertakings not to seek to acquire further
shares in the Group for an agreed period. Full details of the proposals will be circulated to shareholders shortly.

    Outlook
    The Board believes that the measures being taken as set out above will enable management to focus on the core activities of the Group,
and in particular Solcara, to provide a basis for the Group to achieve stable growth in the medium term.  

    Enquiries:                                                                                                                              
         25 June 2008

 ArgentVive plc                        Tel: 01932 569912
 Ray Jackson
 Kevin Fleming
 Charles Stanley Securities           Tel: 020 7149 6000
 Nominated Adviser 
 Russell Cook / Carl Holmes 
 College Hill                         Tel: 020 7457 2020
 Kate Rock


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