Statement re. DietBrown Plc (the "Company")

    


DietBrown PLC



                          DietBrown Plc (the "Company")

DietBrown Inc. a subsidiary of DietBrown plc (formerly Citel plc, which,
following the EGM held on 30 May 2008, sold substantially all of its assets to
Tortel LLC), has received a complaint in Norfolk County Superior Court,
Commonwealth of Massachusetts, from Michael Daly, Chapter 7 Trustee (the
"Trustee") for the Estate of Entrata Communications Corporation ("Entrata"),
alleging that a fraudulent conveyance occurred when Citel plc purchased assets
from Verso Technologies ("Verso") and its subsidiary MCK Communications on 21
January 2005. Plaintiff seeks an unpaid debt of $750,000 plus 12% interest from
1 February 2002.

On or about 30 November 2000, Entrata and MCK Communications, Inc. ("MCK")
entered into a licensing agreement pursuant to which MCK agreed to pay Entrata
the sum of $3,000,000 in installments. A dispute arose as to whether MCK had
made one of the installment payments, and Entrata filed suit against MCK seeking
damages. MCK was acquired by Verso on or about 26 September 2003. On 6 August
2007 Norfolk County Superior Court granted Entrata's motion for summary judgment
against MCK. In February 2008, the Trustee filed a complaint against Verso and
Citel Technologies Inc. alleging that MCK's assets had been fraudulently
conveyed to Citel. Citel's asset purchase from Verso did not include the
assumption of any liabilities and as part of the asset purchase agreement Verso
indemnified Citel Plc in matters of asset ownership. The litigation was resolved
in March 2008 through an out of court settlement with the Trustee pursuant to
which Verso agreed to pay $100,000 in cash and $250,000 worth of registered
stock in Verso. On 25 April 2008 Verso filed for protection under Chapter 11 of
the United States Bankruptcy Code. The Trustee has subsequently rescinded the
settlement with Verso and is now pursuing the action against the Company.

"We will vigorously defend this action as our asset purchase from Verso was an
arm's length transaction and we should not be a party to this matter. Based on
that, the trustee should seek relief from whom it had an agreement with, MCK
Communications, " said interim CEO, Jose David.

DietBrown plc (formerly Citel Plc) sold substantially all of its assets on 3
June 2008. Upon receipt of the final installment of the sale on or about 30
September 2008, the Company expects to distribute remaining funds, if any, to
its shareholders prior to winding up its affairs.

Enquiries:
Jose David, CEO 001 206 965 8925

Dietbrown (LSE:DTB)
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