VPhase PLC - International Factoring Facility Agreed

VPhase (LSE: VPHA.L - news) plc

("VPhase" or the "Company")

International Factoring Facility Agreed

VPhase plc, (AIM:VPHA) a leading developer of energy saving products for residential and commercial properties, is pleased to announce that the Company and its subsidiary, VPhase Smart Energy Limited, have entered into an international factoring facility with the Company's principal banker from today (the "Agreement").

The Agreement will allow the Company to draw down up to 50% of eligible debts to a facility limit of £500,000. In addition to providing additional working capital funding, the Agreement also provides a credit management service which will:

· Collect outstanding and future debts, process remittances and maintain the Company's sales ledger, and

· Provide credit protection of up to 90% of the debt outstanding within the limits set by the bank for each of the Company's customers. There is a first loss in each case limited to £1,000.

Rick Smith, CEO of VPhase, commented: "The Board is pleased to have secured this facility which provides further working capital as well as establishing debt collection and credit protection insurance.

"This £500,000, combined with the £1,350,000 the Company had in cash at the half year, strengthens our ability to maintain the strong growth that the Company is experiencing."

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About VPhase

VPhase plc is an energy efficiency technology company that launched the first domestic voltage optimisation device in the UK. The VPhase VX1 lowers the voltage in the home, reducing the energy consumption of many electrical appliances, saving money and reducing carbon emissions.

The VPhase device:

- has been proven to save up to 12% off home electricity bills;

- is easily installed by a qualified electrician;

- does not require a change in lifestyle or electricity supplier;

- is low cost, with a typical payback of under 5 years;

- has a 5 year manufacturer's warranty and an expected lifespan in excess of 25 years;

- can save up to 4.5 tonnes of CO2 over its 25+ year life;

- attaches to the consumer unit (fuse box) and regulates the voltage to 220 volts;

- is the next most affordable and effective green option for the home, after insulation.

The VPhase VX1 has been extensively tested with independent verification supporting the saving claims, including an Ofgem approved CERT demonstration action, social housing trials and a range of independent consumer trials. Many electrical appliances in the home will benefit from having their voltage optimised and reduced, including fridges, freezers, central heating pumps, televisions, washing machines, vacuum cleaners, etc. - and even 'energy-saving' light bulbs. As well as reducing the homes electricity bill, there is evidence that the life of electrical appliances can be extended by the use of this product; light bulbs in particular, have demonstrated at least a doubling of operating life when on a voltage optimised circuit.

Web: www.vphase.co.uk

Facebook: http://on.fb.me/cUBnek

Twitter: www.twitter.com/vphase

LinkedIn: http://linkd.in/qqbyYS

YouTube: www.youtube.com/vphase

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