24 Oct 07

This announcement replaces announcement RNS 1232G released on 22 October 2007 at 12.41 p.m

In the final paragraph, the nominal value of the new ordinary shares has been amended to the correct value of 1p.

Coolabi plc (the “Company”)

Proposed Capital Reorganisation

Further to the announcement of 28 September 2007, the Company confirms that a circular has today been posted to shareholders in order to seek their approval for a share consolidation by way of a capital reorganisation.

The capital reorganisation will comprise a sub-division and then a consolidation of the Company's ordinary shares. Under the sub-division, each existing ordinary share of 1p will be sub-divided into one new ordinary share of 0.05p and one deferred share of 0.95p. Under the consolidation, every twenty 0.05p ordinary shares will be consolidated into one new ordinary share of 1p.

If any shareholder would otherwise become entitled to fractions of new ordinary shares as a result of the consolidation, the maximum value of the fractional entitlement per shareholder would be 0.95p. Accordingly, it is proposed to grant to the Directors the power to aggregate the fractions arising and to sell the resulting new ordinary shares in the market and for the net proceeds of the sale of such shares to be retained for the benefit of the Company.

The new ordinary shares will have the same rights as those currently accruing to the existing ordinary shares under the Company's Articles of Association, including those relating to voting and entitlement to dividends.

It is important to note that, following the capital reorganisation, each

shareholder will hold one twentieth of the number of ordinary shares which he or she currently holds in the Company. A shareholder's pro rata entitlement to ordinary shares will not be affected.

The capital reorganisation should not affect the market value of the shareholder's aggregate holding of ordinary shares in the capital of the Company.

The deferred shares have very limited rights and are effectively valueless. It is proposed that the Company's Articles of Association will be amended pursuant to the resolutions in order to include the rights attaching to the deferred shares.

The proposed timetable is as follows:

EGM to approve the capital reorganisation - 9.30 a.m. on 13 November 2007

Capital reorganisation record date - 5.00 p.m. on 15 November 2007

Latest time and date of dealings in  existing ordinary shares - 4.30 p.m. on 15 November 2007

Admission and first day of dealings in new ordinary shares - 16 November 2007

Expected date on which new ordinary shares issued pursuant to the capital reorganisation will be credited to CREST stock accounts in uncertificated form -  16 November 2007

Expected date of despatch of definitive share certificates for new ordinary shares issued pursuant to the capital organisation - By 23 November 2007

Application will be made to the London Stock Exchange for the new ordinary shares to be admitted to trading on 16 November 2007.

With effect from 16 November, the consolidated ordinary shares of 1 pence each will trade under a new ISIN as follows:

GB00B28PL418

24 October 2007

This information is provided by RNS

The company news service from the London Stock Exchange

END

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