Notice of General Meeting

RNS Number:4889S
Cagney PLC
16 April 2008


                     CAGNEY Plc ("Cagney" or the "Company")

                           Notice of General Meeting

                           Directors' Recommendation

16 April 2008

The Company announces that a notice convening a General Meeting ("GM") has been
sent to Shareholders on 16 April 2008 (the "GM Circular"). The GM is scheduled
to be held at the offices of Cagney at Holden House, 57 Rathbone Place, London
W1T 1JU on Friday 2 May 2008 at 10.00 am.

At the GM, two resolutions will be put to Shareholders for the purposes of
increasing the authorised share capital of the Company and giving the directors
of the Company (the "Directors") authority to allot shares.

Background

On 13 February 2006, Cagney floated on AIM and simultaneously acquired three
companies - Cubo Brand Communications Limited ("Cubo"), The Media Foundry
International Limited ("TMF"), and Chick Smith Trott Limited (then known as
Walsh Trott Chick Smith Limited). On 19 January 2007, it acquired the business
of Tree (London) LLP ("Tree").

The acquisition agreements in respect of Cubo, TMF and Tree provided the
respective vendors with the opportunity to receive additional consideration,
contingent upon future profitability. The vendors of Cubo became entitled to
additional consideration in respect of Cubo's performance in 2006. The vendors
of Tree will be entitled to additional consideration in respect of Tree's
performance in 2007, and are expected to become entitled to further
consideration in respect of Tree's performance in 2008. The vendors of TMF are
expected to become entitled to additional consideration in respect of TMF's
performance in 2008.

Under the terms of these acquisition agreements, the Company is entitled to
settle part of the additional consideration by issuing shares to the vendors,
and it presently intends to exercise this entitlement. The vendors of Cubo are
entitled to receive 55,988,484 shares in May 2008, and the vendors of Tree are
expected to be entitled soon to receive between 15,000,000 and 45,000,000
shares, depending on the Company's share price.

GM resolutions to increase the Company's authorised share capital and Directors'
authority to allot shares

The Company's authorised share capital is presently �2,000,000 divided into
200,000,000 Ordinary shares of 1p each, of which there are 134,394,338 shares in
issue. There are therefore only 65,605,662 authorised but unissued shares. The
proposed issue of shares to the vendors of Cubo, TMF and Tree is expected to
exceed that figure, and the Company therefore needs to increase its authorised
share capital and authorise the Directors to allot shares.

The resolutions seek the approval of Shareholders to increase the authorised
share capital of the Company from �2,000,000 to �3,000,000 by the creation of an
additional 100,000,000 Ordinary shares of 1p each in order to create sufficient
unissued shares to be issued to the vendors of Cubo, TMF and Tree, and to
authorise the Directors to allot up to 100,988,484 additional shares to those
vendors.

Recommendation

The Directors unanimously believe that the proposed creation of the additional
100,000,000 Ordinary 1p shares and the granting of authority to the Directors to
allot up to 100,988,484 additional shares is in the best interests of the
Company and its Shareholders and unanimously recommend you to vote in favour of
the resolutions, as they intend to do in respect of their own shareholdings.

Copies of GM Circular

Copies of the GM Circular are available free of charge from The Secretary,
Cagney Plc, Holden House, 57 Rathbone Place, London W1T 1JU.

Defined terms in this announcement have the same meaning as in the GM Circular.

ENDS

Enquiries:

Cagney Plc                                 Tel: 020 7637 4198
Paul Simons, Chief Executive
Patrick Oram, Chief Financial Officer

Smith & Williamson                         Tel: 0117 376 2213
Nick Reeve

Cubitt Consulting                          Tel: 020 7367 5100
Michael Henman/Allison Reid


About Cagney Plc

Cagney Plc is an integrated group of marketing services firms. It combines five
businesses: Exedra (retaining BrandAid as a division); Chick Smith Trott
(advertising and design); Cubo (promotional marketing); The Media Foundry
(public relations); and Tree (market research and data analysis). The Group
floated on AIM in February 2006.

www.cagneyplc.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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