CTGP Cartucho

RNS Number:0961S
Cartucho Group Ltd
01 March 2007


Press Release                                                       1 March 2007


                             Cartucho Group Limited


                         ("Cartucho" or "the Company")


                                 Trading Update


Further to its statement made on 17 November 2006 Cartucho, a developer and
manufacturer of ink refill kiosks, is pleased to announce that the
implementation of its in-house service and support division has proved
successful and that the Company now supports all service calls within the United
States. This has shown a significant  improvement in service response times and
increased machine up time.


In January this year, Cartucho implemented a Customer Support Representatives
(CSR) program, the aim of which is to support all of its customers in ink refill
training and provide store representatives with product knowledge.


As at 26 February 2007 the company had 477 kiosks in operation generating
revenues within the US.


The Board is pleased to announce that it has entered into non-binding terms with
a third party funder to provide a secured revolving credit facility of up to
US$4.5 million to the Company. This facility is subject to due diligence by the
funder and the agreement of definitive contractual documentation. In addition,
the Company has also been in discussions with three of its founder shareholders
comprising Roger Pellew (the CEO), Christopher Burton and David Scanlan with a
view to such persons providing a further facility to the Company of up to
$475,000. A further announcement will be made upon the consummation of these
financing arrangements.


The Company is well placed to continue the roll-out of the remaining kiosks to
its major US customer into the second half of 2007 but it requires this further
financing to enable such roll-out to be fully implemented. The Company's
existing bank continues to be supportive.


Due to the increased overall performance of the Company covering service, refill
rates and CSR program, the contract with its major US retailer has now been
extended for a further 12 months. This is further validation that the Company
has made huge improvements in all aspects of its operations.


The Company is pleased report that in the first six weeks of 2007 average refill
rates continued to rise. This is in part is due to new initiatives implemented
by the Company under its CSR program which is achieving good early results.


Commenting on progress Roger Pellew, Chief Executive, said: "As with every new
industry there are new and daily challenges. However I am delighted to report
that the extension of the contract with our major US customer is vindication of
the many improvements made by the Cartucho team over the past few months. A good
customer experience and quality of service remains the key to success."


The Company will release its financial results for year ended 31 December 2006,
no later than 30 April 2007 and expects to announce revenues of not less that
#1.6 Million and a loss, after tax and share based payment provisions, of not
greater than #4.5 Million for the period.


Directorate Changes


In continuing to strengthen the board, the directors have sought to fill
management positions from within the ink and retail industry.  The board is
pleased to announce the appointment of two non-executive directors with
immediate effect:


Marc James Caparrelli, aged 58


A US national, Marc Caparrelli was Senior VP and co-owner of a leading US ink
cartridge re-manufacturer, recognised as one of the top 100 fastest growing
companies by Entrepreneur Magazine two years running. Mr. Caparrelli graduated
from Philadelphia University with a Bachelor of Science in Marketing &
Accounting and has held several senior finance and operational roles in
manufacturing and retail companies. The experience and wealth of knowledge that
Mr. Caparrelli brings to the company is invaluable.


Mr. Caparrelli does not hold any current directorships; he has been a director/
partner during the previous five years in the following companies:

  * Thoroughbred Technologies

  * Generation 2 Worldwide

  * Kingswood Development

  * Satellite Phone Source

  * Visionary Companies


Steven Robert Cackett, aged 47


A UK national, Steve has significant experience in the ink cartridge refilling
industry and was involved in one of the first ever in store refill programs. He
has worked in a number of sales and operational roles with in the retail sector
and has particular expertise in European retailer sales.


Mr. Cackett does not hold any current directorships; he has been a director
during the previous five years in the following companies:

*         Cartridge Wise (UK) Limited
*         Ink Xpress (Franchising) Limited
*         Anglia SuperJet Limited

There is no other information that falls to be disclosed under Schedule 2
paragraph (g) of the AIM Rules.


Commenting on the appointments, Roger Pellew, Chief Executive of Cartucho Group,
said: "I am delighted to be able to strengthen the Board of Cartucho at this
time with high calibre individuals who have experience in our business sector.
Broadening our delivery to retailers is a key goal for 2007 and we are
formulating strategies to develop new territories outside the United States. I
am confident that Marc and Steve can help us to deliver in both of these areas."


Further, the Company announces today that Mr. Peter Richardson has resigned from
the board as a non-executive director, in accordance with his Jersey based
corporate services company's current policy regarding directorships in AIM
companies. The Board is continuing its search for a non-executive Chairman and
shareholders will be updated on progress in due course.


                                    - Ends -



For further information:

Cartucho Group Limited
Roger Pellew, Chief Executive                              Tel:  +1 585 771 0665


Media enquiries:

Abchurch
Chris Lane                                             Tel: +44 (0) 20 7398 7700
chris.lane@abchurch-group.com                             www.abchurch-group.com


END




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