TERN PLC

Regulatory Filings • Oct 30, 2018

30-Oct-2018 / 07:00 GMT/BST

Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

30 October 2018

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

Addional Investment in FundamentalVR

Tern Plc(AIM:TERN), the investment company specialisingin the Internet ofThings ("IoT"), is pleased to announce that it has made afurther £1.1 million investment in FVRVSLimited ("FundamentalVR" or"Fundamental"),aleading Virtual Reality ("VR") training and data analysis technology pla/orm and one of its exis1ng por/olio companies. Fundamental'saward-winning pla/orm combines immersive virtual reality with cu5ngedge hap1cs (the sense of touch) to create low-cost and scalable 'flight simulator' experiences which offer a new way to facilitate skills development for surgeons.Thisaddi1onal investment increasesTern's holdingin FundamentalVR from 18.3% to 34.7%.

This investment followsFundamental's recent signing of athree year term joint development agreement with the Mayo Founda1on for Medical Educa1on and Research ("the Mayo Clinic"), the U.S. leading academic medical centre which wasvoted Best Hospital in 2018 U.S. News & World Report rankings of top hospitals in the USA, which will see the two par1es collabora1ng on a range of simula1on and educa1on products with an ini1al focus on the General Surgery area. Addi1onally, the current release of the Fundamental Surgery pla/orm is now live in the Mayo Clinic's world-renowned simula1on centres located in Arizona,Floridaand Minnesota.

This new alliance is expected to accelerate FundamentalVR's progress in building out its procedures por/olio and enables the FundamentalVR team to have access to leadingsurgical knowledge as well as 3D modelling, datascien1sts and simula1on specialists at the Mayo Clinic. The Mayo Clinicand FundamentalVR are both ul1mately focused on improving pa1ent outcomesand share the belief that the compara1ve datainsightand measurement collected and available through the FundamentalVR pla/orm will have a profoundly posi1ve impact on medical outcomes and productsaround the world.

Under the joint development agreement, the Mayo Clinic will receive royal1es on the sale of jointly developed licensed products and will receive otherconsidera1on from FundamentalVR upon achievingcertain milestones.

FundamentalVR's current revenues from its exis1ng procedures and its pipeline of new procedures are expected to accelerate through the addi1on of new proceduresand poten1al licencingareas emana1ngfrom this new partnership. Addi1onally, in the longer term FundamentalVR expects to build addi1onal revenue sources from its data insight, accredita1on and licensing of the development assets in complementary medical markets.

Based on FundamentalVR's latest statutory accounts for the year ended 31 December 2017, FundamentalVR had net assets of £886,019 and aloss for the year of £247,921.

Tern CEO, Al Sisto, said, "FundamentalVR has proven itsagility to rapidly deliver on its strategy since our ini1al investment. We are really pleased to provide this follow-on investment in this innova1ve company.They have an ambi1ous strategy, forward revenue visibility and now,a pres1gious content partner that recognises the ability of their pla/orm to revolu1onise surgical training and ul1mately, pa1ent outcomes. We are pleased with their execu1on and the value it is crea1ngin the businessand therefore delighted to have increased our ownership posi1on."

Thisannouncement contains inside informa1on for the purposes of Ar1cle 7 ofEU Regula1on 596/2014.

Enquiries
Tern plc Al Sisto, CEO Sarah Payne,Finance Director	Via Redleaf
Allenby Capital Limited (Nomad and Joint broker) David Worlidge/Alex Brearley	Tel: 0203 328 5656
Whitman Howard (Joint broker) Nick Lovering/ChristopherFurness	Tel: 020 7659 1234
Redleaf Communicaons PR Elisabeth Cowell/Fiona Norman	Tel: 020 3757 6880

ISIN: GB00BFPMV798 Category Code:MSCH TIDM: TERN LEICode: 2138005F87SODHL9CQ36 Sequence No.: 6362

**ENDS**

EQS News ID: 739115

End ofAnnouncementEQS News Service