(VELO.L) Velosi Ltd Buy/Sell

RNS Number : 7879B Velosi Limited 03 November 2009

3 November 2009

Velosi Limited

Agreement regarding Velosi Nigeria

Velosi Limited ('the Group'), the provider of asset integrity and HSE services to a number of major national and multinational oil and gas companies, is pleased to announce that it has reached an agreement with the executors/beneficiaries of Richard Ogunmakin's estate regarding the future ownership and operation of Velosi Nigeria.

Shares in Velosi Nigeria and Velosi Angola owned by Richard Ogunmakin's estate have now been acquired by the Group and as a result, operations in Nigeria are expected to recommence under a new local manager and we anticipate that Nigeria will again make a contribution to Group revenues from 2010 onwards.

The terms of the agreement are not expected to materially affect the performance of the group as a substantial portion of provisions had already been made in prior year accounts.