Phoenician IV - Interim Report

STATEMENT BY THE BOARD

FOR THE PERIOD ENDED 30 APRIL 2009

Since admission to PLUS in March 2009, the Company continues to search for appropriate acquisition(s) of either the whole or part of suitable Sharia compliant businesses (the "targets" or singularly, the "target"). The Directors believe that Sharia compliant businesses offer material opportunities for growth. The Company will not limit itself to the acquisition of Sharia compliant businesses where alternative positive opportunities present themselves, but will endeavour to seek out Sharia compliant businesses as its main focus.

The Company, where and when appropriate and permitted, will seek board representation on each target in which the Company is an investor. As such, the Company will be a pro-active investor and will seek, to the extent permitted by all applicable laws, to control and operate a target. Acquisition of targets is not intended to be financed solely through the proceeds gained from investors' subscriptions, but may, if appropriate, be financed through a further issuance

of Class A Shares or through the issuance of Class B Shares. It is the intention of the Company to effect an acquisition or sign a letter of intent, agreement in principle or definitive agreement for an acquisition within 12 months following its admission to PLUS. The Directors have identified a number of potential targets but no due diligence has been concluded and accordingly, no potential targets have yet brought to shareholders' attention.

Further to the 30 April 2009 investment in King Tech International Ltd ("King Tech") included in the financial statements for the period then ended, the Company has made further investments (post balance sheet date) in King Tech. The Company entered into arrangements in June 2009 with certain share, option and warrant holders of King Tech whereby the holders of such shares, options and warrants exchanged those shares, options and warrants for Class A Shares in the Company at a cost differential based on a price of 11p per King Tech share and a price of 5 cents (US$) per Class A Share in the Company.  The aggregate number of shares, options and warrants purchased was 11,579,913.  The total consideration, issued in the form of Class A shares in the Company was 28,902,360. Some of the aforementioned options purchased by the Company were duly exercised on 30 June 2009 (being their expiry date) in consideration for the sum of 144,999GBP.  The total number of King Tech shares received upon exercise is 10,163,247 as of this date.  The percentage holding of King Tech shares vis a vis all of the Company's investments to date is 16.6%.

The purchase of options and warrants programme by the Company remains open for the time being and is expected to close no later than 30 September 2009.

As at 30 April 2009, the Company had a positive cash balance.

Jason Richard Futko

Chairman

31 July 2009

For full details on the financial statements of the Company, please refer to the full news release.