RAF Real Affinity

RNS Number:6607X
Real Affinity PLC
04 June 2007

                                                                     4 June 2007

                               Real Affinity plc

                            Sale of Evolve Sport Ltd


Real Affinity plc, ("Real Affinity" or "Real Affinity Group"), the AIM-listed
marketing services group, announces that it has sold the entire issued share
capital of Evolve Sport Ltd ("Evolve"), a subsidiary of Navigator, to Mr Graham
Morgan and Mr John Bishop, part of the Evolve management team. The consideration
for the disposal is #135,001, including the repayment of inter-company debt of
#135,000. The debt is repayable over 7 years at a commercial rate of interest.

The Real Affinity Group is entitled to receive 15% of sports sponsorship revenue
earned from the implementation of a range of marketing activities by Evolve for
a period of the next 3 years. The parties have agreed that such proceeds shall
be credited initially against the inter-company debt.

The business of Evolve consists of creating and implementing grassroots sports
activities and events. These offer sponsorship opportunities for brands to use
for marketing purposes. For the year ended 31 March 2006, the loss before
taxation and extraordinary items of Evolve was #11,502 on turnover of #299,565.
At 31 March 2006, the net asset value of Evolve was a deficit of #31,926. Since
that date, the company has continued to incur losses. The inter-company debt has
been fully provided for.

The disposal will remove a loss-making business from the Real Affinity Group,
reduce costs by approximately #300,000 on an annualised basis, and remove the
requirement to provide on-going working capital to Evolve, whilst retaining the
benefit of commissions earned. The disposal is part of the intended restructure
announced on 13 March 2007 by Real Affinity.

The disposal constitutes a related party transaction under the AIM Rules. The
directors of Real Affinity, having consulted with HB Corporate, the Company's
Nominated Adviser, consider that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned.


For further information, please contact:

Real Affinity plc                                             Tel: 01274 421 700
Gerard Corcoran, Group Chief Executive
Brent Fitzpatrick, Non-Executive Director

HB Corporate                                                  Tel: 020 7510 8600
Edward Hutton

Bankside Consultants                                          Tel: 020 7367 8888
Michael Padley / Susan Scott



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