TERN PLC

Share Issue/Capital Change • May 8, 2018

08-May-2018 / 07:00 GMT/BST Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

8 May 2018

Tern Plc("Tern" or the "Company") EquityFundraise

Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that it has raised £1,750,000 before expenses through an uncondi)onal placing of 9,459,460 new ordinary shares of 0.02p each ata price of 18.50 pence per ordinary share (the "Placing") with asingle ins)tu)onal investor, u)lisingthe exis)ngshare authori)esgranted at the 2018 AGM.

The net proceeds of the Placing will be used primarily to provide addi)onal finance to develop the businesses of the exis)ng por3olio companies and invest in new por3olio companies.

Al Sisto, CEO of Tern, commented on the Placing: "This Placing provides us with capital to con)nue delivering on our strategy t o add to our por3olio of IoT businesses,and establish Tern as aleadingIoTinvestment company. As promised at our AGMand our shareholder call on 26 April 2018, we will con)nue to provide regular updates on the progress being made by our por3olio companies which is the key value driver forTern."

Applica)on will be made for the 9,459,460 new ordinary shares to be admi5ed to AIM and it is expected that admission will take place and tradingin the new ordinary shares will commence on 14May 2018.

In accordance with the Financial Conduct Authority's Disclosure, Guidance and Transparency Rules, the Company confirms that on comple)on of the Placing and followingadmission of the new ordinary shares to trading on AIM, the enlarged issued share capital will comprise 221,600,796 Ordinary Shares of 0.02p each. The Company does not hold any shares in Treasury. Therefore the total number of vo)ng rights in the Company is 221,600,796. The above figure may be used by shareholders in the Companyas the denominator for the calcula)ons to determine if they are required to no)fy their interest in, orachange to their interest in the Company, under the Disclosure Guidance and Transparency Rules.

Thisannouncement contains inside informa)on for the purposes of Ar)cle 7 ofEU Regula)on 596/2014

Enquiries Tern Plc Al Sisto/Sarah Payne	via Redleaf
WH Ireland (NOMAD and joint broker) Mike Coe/Ed Allsopp	Tel: 0117 945 3470
Whitman Howard (Joint broker) Nick Lovering/Francis North	Tel: 020 7659 1234
Redleaf Communica,ons Elisabeth Cowell/Fiona Norman	Tel: 020 3757 6880

ISIN: GB00BFPMV798 Category Code:MSCH TIDM: TERN LEICode: 2138005F87SODHL9CQ36 Sequence No.: 5507 EQS News ID: 682797

End ofAnnouncementEQS News Service