SFS proceeds with capital increase and reverse split

The Extraordinary General Meeting of SFS Group Pcl (SFS) held on April 27, 2007 approved the resolution concerning the increase in the Company’s nominal capital by 40 cents for capital split purposes (so that the nominal capital be increased from CYP200,000,000 divided into 2,000,000,000 shares of nominal value 10 cents each to CYP200,000,000.40 divided into 2,000,000.004 shares of nominal value 10 cents each).
The reverse split of the Company’s capital, so that every 6 ordinary shares of nominal value CYP0.10 per consolidated to 1 consolidated share of nominal value CYP0.60.
Following the consolidation above, the Company’s capital will be as follows:
(i) The nominal capital of CYP200,000,000.40 divided into 2,000,000,004 shares of nominal value 10 cents each will be consolidated to CYP200,000,000.40 divided into 333,333,334 shares of nominal value 60 cents each and,
(ii) The issued capital from CYP28,153,097.40 divided into 281,530,974 shares of nominal value 10 cents each will be consolidated to CYP28,153,097.40 divided into 46,921,829 shares of nominal value 60 cents each.
The record date for the consolidation of the share capital will be on May 4, 2007.
It is noted that the Company has applied to the CSE for the suspension of trading of its shares and warrants 2005/2007 during the five business days that follow the record date for the reverse split, that is, from May 7 to May 11, 2007 (inclusive).
Further to the above reverse split and pursuant to the warrants issue terms included in the Prospectus dated November 3, 2005 and the Supplementary Prospectus dated November 22, 2005, the terms of warrant exercise will be amended so that for every 6 warrants exercised of CYP0.165 each, 1 consolidated share of nominal value CYP0.60 will be allocated, instead of 6 shares of nominal value CYP0.10.
It is reminded that the next warrant exercise date will be on December 2007, which is the last.