Update on Disposal of Warrants

Highlands announces that it has been notified by Diversion Technologies LLC (‘Diversion’) that the arrangements entered into by Diversion earlier this week to sell its entire holding of 30 million warrants in Highlands to an institutional investor (the ‘Institutional Investor’) have been altered slightly as a reflection of the recent movements in the Highlands share price. These alterations affect only Diversion. The effect of the transaction on Highlands is unchanged, namely that, if the Institutional Investor takes up its options to acquire Diversion’s entire holding and exercises the warrants, Highlands will receive new funds of £7.5 million.