DTB Dietbrown

    


DietBrown PLC



2 October 2008

                                  DietBrown Plc

                              (formerly Citel PLC)

                         Shareholder Distribution Update

The Board of DietBrown plc ("DietBrown" or the "Company") announced on 4 June
2008 that the Company had completed the sale of the business and certain assets,
comprising substantially all the assets underlying the Company's trading
operations, to Tortel USA, LLC for US$2,600,000 (the "Disposal") and received a
payment of US$1,850,000, less a US$50,000 deposit received on signing the letter
of intent. The remaining amount of US$750,000 was due to be received on 30
September 2008. The Company received a notice from the buyer on the due date
indicating their intention to exercise their right to file a claim against the
balance owed. The Board believes that the claim is baseless. The purchase
agreement provides for dispute resolution through mediation and the Board
intends to pursue this avenue forthwith.

As announced on 25 June 2008 the Company received a complaint from Entrata, with
the plaintiff seeking an unpaid debt of $750,000 plus 12% interest from 1
February 2002. The Company maintains that the claim is without merit. The
Company's counsel together with management is in the process of seeking quick
resolution either through the courts or, if deemed in the best interests of
shareholders, with the plaintiff.

The strategy of the Company remains to use the proceeds from the Disposal to
satisfy obligations to creditors and employees and to then seek to return
residual cash (if any) to shareholders. Residual proceeds (if any) and timing
will be a function of collectability from debtors including the buyer of the
assets, the successful negotiation of outstanding obligations, the outcome of
outstanding legal cases (including the Entrata legal case) as well as the extent
of legal fees incurred. Whilst these variables make forecasting imprecise, the
Company expects to have a cash balance of approximately �150,000 at 31 December
2008. This analysis assumes that the outcome of the claims discussed above is
broadly favourable to the Company. Once any residual proceeds have been
distributed to shareholders, management intend to seek a members' voluntary
liquidation and cancel the Company's listing on AIM.

Contact Details:
DietBrown Plc
Jose David,            CEO 001 206 419 3083
Panmure Gordon (UK) Limited
Dominic Morley         +44 (0)20 7459 3600
Giles Stewart

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