The Company is pleased to announce that it has sold a minority interest in one of its subsidiaries and provides an update on its portfolio.

Sale of Shares in Subsidiary

The Company announces that it has today entered into a share acquisition agreement with Litigation Strategies LLC ("Litigation Strategies") pursuant to which the Company has agreed to sell 80 ordinary shares (the "Shares") in its wholly owned subsidiary Riverbend Investments Limited ("Riverbend") (representing 8% of the entire issued share capital of Riverbend) to Litigation Strategies for a consideration of US$4,000,000.

As previously announced, Riverbend has entered into a swap agreement with Fields Scrantom Sullivan PLLC ("FSS") whereby it has agreed to pay any amounts payable under the loans made to FSS by the Company at the end of the term of the loans to the extent that FSS does not have sufficient income to allow such payment. As consideration, Riverbend is entitled to an annual amount equal to the greater of $ 3.5 million or 36 percent of the principal and interest then due under the loans from the Company to FSS (subject to FSS having sufficient income to pay the same).

The Company, Riverbend and Litigation Strategies have also entered into a put option agreement pursuant to which Litigation Strategies will be entitled to require the Company to purchase the Shares back from it at any time up to the third anniversary of today's date for a total sale price equal to US$6,392.70 in cash multiplied by the number of calendar days between today's date and the date on which the transfer under the put option agreement is completed less the amount of any dividends paid by Riverbend (or declared to be paid by Riverbend) to Litigation Strategies in relation to the Shares during such period.

The Company, Riverbend and Litigation Strategies have also entered into a customary shareholders' agreement to regulate their affairs in relation to Riverbend going forward.

Portfolio Update

The Company had invested or committed $119.4 million as at 15 October 2009. This includes one new investment (Case 0409-C) committing $4.7 million to a patent enforcement case since the Company announced its interim report and financial statements. At the time of our last announcement Case 1208-A, one of the larger cases to which JIL is exposed, was in trial on certain, but not all, issues. We are pleased to report that the jury found the defendant liable to the plaintiffs on all counts. The jury verdict may be appealed.  The amount of damages will be determined separately at a date yet to be set by the court. Case 0608-S remains under review. Any material revaluation will be disclosed when made. As at 15 October 2009, the Company had invested $2.8 million in Case 0608-S.  Regarding Case 1008-A, a trial date was anticipated in the first quarter of 2010, but this has not been set.

Commenting on the sale of shares in Riverbend Richard Fields, CEO of Juridica Capital Management Limited said, "It is significant that JIL has now sold a portion of its investment. We believe that this transaction demonstrates the potential to create liquidity in the claims investment market. We are delighted to have completed this deal with Litigation Strategies and look forward to further opportunities for realising value in the portfolio."

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