TERN PLC

Share Issue/Capital Change • Jul 25, 2018

25-Jul-2018 / 07:00 GMT/BST

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

25 July 2018

Tern Plc("Tern" or the "Company") EquityFundraise of c. £2.9m

Tern Plc (AIM:TERN), the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that it has raised approximately £2.9 million before expenses through an uncondi(onal placing of 11,192,307 new ordinary shares of 0.02p each at a price of 26 pence per ordinary share (the "Placing"), u(lisingthe exis(ngshare authori(esgranted at the 2018 AGM.

The funds raised will place Tern in a stronger financial posi(on for upcominginvestment nego(a(onsand will also provide addi(onal finance to develop the businesses of the exis(ng por2olio companies.

Al Sisto, CEO of Tern, commented on the Placing: "We are pleased to receive further support for our strategy and for our current por2olio from both new and exis(nginvestors. The addi(onal cash resource provided by this placing will enhance our opportunity to further develop our underlying netassetvalue."

Applica(on has been made for the 11,192,307 new ordinary shares to be admi4ed to AIM and it is expected that admission will take place and tradingin the new ordinary shares will commence on 30 July 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 236,676,887 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 236,676,887. 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/Hugh Rich/ChristopherFurness	Tel: 020 7659 1234
Redleaf Communica0ons	Tel: 020 3757 6880

ISIN: GB00BFPMV798 Category Code:MSCH TIDM: TERN LEICode: 2138005F87SODHL9CQ36 Sequence No.: 5781 EQS News ID: 707587

Elisabeth Cowell/Fiona Norman

End ofAnnouncementEQS News Service