BABYBOND RAISES GROWTH CAPITAL FOR FURTHER NATIONAL EXPANSION

May 2008

Rutland-based Babybond, a provider of baby scanning services through its wholly-owned and franchised centres across the UK, has raised over £200,000 in investment from a consortium of investors led by the East Midlands Early Growth Fund, funded by emda.

Babybond is the UK's first ISO Quality Endorsed ultrasound provider, and has been offering parent-to-baby-bonding experiences since 1998. Today the company offers a full range of private antenatal scans including screening. The company was founded by Jan Steward, a Radiographer and holder of the Diploma in Medical Ultrasound since 1982, and her husband Mike Steward, a Bio Electronics engineer qualified in 1979, who has worked in the application of medical ultrasound for the last 30 years.

Babybond currently has 18 clinics across the UK, from London to Glasgow and Newcastle to Cardiff, and is dedicated to opening several more within the next few months.

The company has received a total investment in excess of £200,000. This was led by the East Midlands Early Growth Fund, which invested £100,000, alongside investment from East Midlands Business Angels and Venture Investment Partners.

The money will be used to enable Babybond to implement a bespoke web booking system across the entire group, increase its tele-sales capacity and speed up the company's expansion across the UK.

Speaking about her plans for the future of the business, Jan said: "Babybond has established itself as the leader in self pay pregnancy scan services. Our investment will help us deliver the Babybond services to even more people in the UK and continue to innovate in our field". Mike Steward added: "This is great news for the company and our staff. It was equally important for us to secure investment and to find the right partners. Our investors demonstrated a thorough understanding of our specialist field and empathy with the challenge of fund raising faced by management of an operational SME."

Nick Wright, of the East Midlands Early Growth Fund, which led the deal said: "Expecting a baby should be a fantastic time for new parents, but they often feel they are on a conveyor belt with scan appointments that last just a few minutes. Babybond impressed us from day one because they successfully combine fantastic customer service with sound business judgement."

Tom Yardley of East Midlands Business Angels (EMBA), said: "Members of EMBA's investors' club are delighted to back this talented management team. Babybond provide a superior service throughout the pregnancy by professionals at a convenient time and parents-to-be are reassured by wonderful first pictures of their baby. We are confident that Babybond will deliver great investment returns."

Mike Piper, of Venture Investment Partners, who will join the board as Chairman, said: "This is one of the most professionally run early stage companies I have come across during my 25 years experience in venture capital. I believe the business has a great future and I am delighted to have been asked to take on the role of Chairman".

The East Midlands Early Growth fund is administered by London-based fund manger E-Synergy, and administered from the Fund's offices in Silverstone Circuit in Northamptonshire.

emda's East Midlands Early Growth Fund has assisted 11 businesses in the East Midlands in the last 15 months. It is just one of a number of financial products that it offers to companies that require investment ranging from £2,500 to £2,000,000.

Further details about the East Midlands Early Growth Fund can be found at: www.earlygrowthfund.com, and for a full range of financial services that are available to businesses, visit www.emda.org.uk/accesstofinance

Further details about East Midlands Business Angels can be found at:
www.em-ba.co.uk

Further details about Venture Investment Partners can be found at www.ventureip.co.uk

ENDS

For further information on this press release please contact Nick King, Media and PR Manager, on 0115 988 8375; email: nickking@emd.org.uk

About emda

• East Midlands Development Agency (emda) is one of nine Regional Development Agencies in England, set up in 1999 to bring a regional focus to economic development.
• Working in partnership with public, private and voluntary organisations the aim is to deliver the 2006 Regional Economic Strategy (RES) 'A Flourishing Region', which sets out regional priorities until 2020.
• The RES, coordinated by emda, highlights the themes of productivity, sustainability and equality and builds on the previous two strategies; 'Prosperity Through People' and 'Destination 2010'.
• In early 2007 the National Audit Office announced emda had received the highest possible grade of 'performing strongly' in an independent assessment of our work - scoring 22 out of 24.
• For more details visit www.emda.org.uk