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Independent Share Valuation

Client: Medicsight

Brief

Medicsight Inc's business was to conceive, develop and commercialise innovative medical applications. It needed an independent opinion on the value of 15,000,000 Medicsight plc shares issued to Medicsight Inc in November 2001 and applied in settling an outstanding purchase consideration due to Nightingale Technologies Limited.

Approach

A rigorous valuation report was complied under the provisions of SEC guidelines, US GAAP, the Uniform Standards of Professional Appraisal Practice and other relevant guidelines. The report also analysed the applicable standard of value, rights of the shares and appropriate methodologies. The report then analysed all relevant bases of valuation for the shares, the underlying assets (intellectual property) and other relevant assets. Several assessments were made on the income, market and cost methodologies and a conclusion drawn after considering all of them.

Result

An independent valuation report was provided giving the value of the shares as £750,000. This valuation was adopted by Medicsight in its 2004 annual report (form 10K).

"Medicsight Inc asked Intangible Business to give an opinion on the value of 15,000,000 Medicsight plc shares issued to Medicsight Inc in November 2001 and applied in settling an outstanding purchase consideration due to Nightingale Technologies Limited. This was a sensitive and contentious issue for us, as this (and related issues) would need to be reported in Medicsight's annual report (form 10K) with the SEC. Intangible Business prepared a well analysed and researched report valuing these shares which Medicsight considered appropriate to adopt in its annual report. This resulted in a revised value some US5 million different from before.

The SEC filing included the report from Intangible Business and can be found on the SEC web site, as part of form 10K filed in April 2004 (http://www.sec.gov/Archives/edgar/data/1001601/000104746904011287/a21327...). Their work was self evidently effective and their approach was efficient; thorough; quick; and commercial, and they worked well as a team with Medicsight representatives.

We have no hesitation in recommending Intangible Business for share, business and intangible valuation advice significant to the financial markets."

Stephen A Forsyth, Chairman - Medicsight