Deals

The Company is pleased to announce that it has completed the acquisition of the entire issued share capital of Canadean for a total consideration of £9,000,000 in cash and the issue of 6,944,445 shares.

Canadean is a leading provider of business and market intelligence to the global beverage industry. Founded in 1973, Canadean has established an enviable position in the market place, providing high quality business critical information for many of the world’s largest beverage companies, both soft drinks & beer, as well as key suppliers to the industry across packaging, raw materials and ingredients.

For the financial year ended 31 December 2009, Canadean reported revenues of approximately £6.4 million and net assets of approximately £1.0 million.

The Company believes that with the benefits of being part of the enlarged Progressive Digital Media Group, the acquisition will be earnings accretive within the first twelve months post acquisition. Moreover, this acquisition provides Progressive with the platform from which to expand into other global verticals allied to the beverage market and its supplier industries.

The Company is also pleased to announce that Kelsey van Musschenbroek, a founder, Chairman and CEO of Canadean, has agreed to join the Board of Progressive as a Non-Executive Director.

Financing
The acquisition of Canadean will be financed by a £9.0 million three year amortising loan facility provided by Mike Danson (Chairman of Progressive and Shareholder) and by the issue of 6,944,445 new Progressive ordinary shares (“Consideration Shares”). The Consideration Shares rank pari passu in all respects with the existing issued ordinary share capital of the Company.

The Term Loan provided by Mike Danson, which is to be repaid in full by September 2013 (or earlier subject to Board Approval), accrues an interest rate of 275 basis points over 3 month LIBOR (London Interbank Offered Rate), in line with the current rate on Progressive’s bank overdraft facility.

Following the issue of Consideration Shares, the issued share capital of the company will increase by 1.9% to 376,492,131 ordinary shares of 0.01p each. In accordance with the Disclosure and Transparency Rules, the Company confirms that upon completion its quoted share capital comprises 376,492,131 ordinary shares. This figure may be used as the denominator for the calculations by which they will be required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.