Close Venture Management Invests in Lowcostbeds.com

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. October 14, 2008

UNITED KINGDOM, September 12, 2005. Lowcostbeds.com has completed a substantial investment deal with the Close Venture Management, valuing the company at lb7m within a year of set up.

Lowcostbeds.com, launched in November 2004, is ahead of its business plan for its first year's trading to sell over 30,000 holidays, with turnover exceeding lb4.5m and a forward run rate of lb10m per annum. Close Venture Management was a significant investor in activehotels.com which was sold to US internet giant, priceline.com, for lb90m in 2004, making a 10 times return on its investment. It is part of the Close Brothers Group, a 125 year old merchant bank, voted "Venture Capital Trust Manager of the Year" at the Growth Company Investor awards on 22 June 2005. This award is another endorsement for Close Venture Management's position as a leader in the VCT arena. Earlier in the year CVM was voted "Best VCT Provider" in the Professional Adviser Awards 2005.

Paul Evans, who founded lowcostbeds.com in 2004 after a successful 20 year career growing market leading tour operators including Airtours and First Choice, commented: "We are delighted to have completed this deal with Close Venture Management. It will provide us with funds to further exploit the massive growth in the independent, dynamically packaged holiday market, and establish us as the leading independent company in this sector. This investment completes our first phase of development and positions us for profitable growth".

Will Fraser-Allen, Director of Close Venture Management, who will join the lowcostbeds.com board said: "The on-line travel market is growing at double digit rates, but is still only scratching the surface of the potential. Lowcostbeds.com, with its unique product range and very strong management team, is ideally positioned to take advantage of this growth"

Lawrence Hunt also joins the board as a non executive, having played a major role in the set up to date. His experience gained from building and successfully exiting five businesses in the travel and technology industries will be invaluable.

Andrew Godber, a director of Panmure Gordon, a city broker involved in the leisure sector, comments on the deal: "This is an exciting transaction for lowcostbeds.com and Close Venture Management as it will help to accelerate further the growth of lowcostbeds. Lowcostbeds has an exceptional platform for addressing the rapidly expanding on-line travel market, whilst Close is one of the most experienced investors in the sector."