Corporate Governance

For the year ended 31 December 2008

The Directors acknowledge the importance of the Principles set out in The Combined Code issued by the Committee on Corporate Governance. Although the Combined Code is not compulsory for AIM companies, the Directors have applied the principles as far as practicable and appropriate for a relatively small public company as follows:

The Board of Directors

The Board meets regularly and is responsible for strategy and performance. The appointment and removal of the Company Secretary is a matter for the Board as a whole. In addition, procedures are in place to enable the Directors to obtain independent professional advice in the furtherance of their duties, if necessary, at the Company's expense. A nominations committee is not considered appropriate because of the small size of the Board and the Company, but all appointments are fully discussed by all Board members.

Audit Committee

The Audit Committee consists of Stephen Oakes and Jonathan Steinberg and meetings are also attended by other executive directors of the Company on invitation. The Audit Committee is responsible for monitoring compliance with accounting and legal requirements, and for reviewing the annual and interim financial statements prior to their submission for approval by the Board.

Remuneration Committee

The Remuneration Committee comprises Stephen Oakes and Graham Platts. The Remuneration Committee's role is to consider and approve the remuneration and benefits of the executive directors of the Company. In framing the Company's remuneration policy, the Remuneration Committee will give consideration to Section B of the Combined Code.

Internal Financial Control

The Board is responsible for establishing and maintaining the group's system of internal financial control and places importance on maintaining a strong control environment. The Group's system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives. Statement by Directors on Compliance with the Provisions of the Combined Code The Board consider that they have complied with the provisions of The Combined Code, as far as practicable and appropriate for a public company of this size.

Directors Remuneration

The Remuneration Committee will review the performance of executive Directors and recommend the scale and structure of their remuneration and review the basis of their service agreements with due regard to their interests of Shareholders. No member of the Board will participate in decisions concerning their own remuneration.

Model Code

The Company has adopted and will operate a share dealing code for directors and senior executives on the same terms as the London Stock Exchange Model Code for companies whose shares have been admitted to AIM.

Relations with shareholders

Communications with shareholders are given high priority. The Board uses the Annual General Meeting to communicate with investors and welcomes their participation. The Chairman aims to ensure that the Directors are available at Annual General Meetings to answer questions.