X-Phonics plc
20 December 2006

                                 X-Phonics plc



                                20 December 2006

                          Issue of New Ordinary Shares





X-Phonics plc ("X-Phonics" or "the Company"), the independent record label and
media management company, today announces it has allotted and issued 479,920
new Ordinary Shares of 1p each in the capital of X-Phonics ("Ordinary Shares")
at 5p per share to certain Directors of X-Phonics, in lieu of unpaid Director
fees and also to Kerman & Co LLP, as an offset against part of their fees
relating to the provision of advice on the acquisition of White Noise.



Robin Davies will receive 164,500 Ordinary Shares and Mike Hosie will receive
215,420 Ordinary Shares of 1p each at 5p per share, in lieu of unpaid Directors
fees due to them of £8,225 and £10,771 respectively. In addition, Kerman & Co
LLP has agreed that an amount, equal to £5,000, in relation to part of their
fees on the recent acquisition of White Noise, is to be satisfied by the issue
of 100,000 Ordinary Shares at 5p per share.



Further to the Company's announcement on 15 December 2006, concerning issued
share capital and total voting rights, following the above issue of shares the
Company's issued share capital is now 66,214,920 Ordinary Shares of 1p each.



Following the Issue the Directors' interests in Ordinary Shares will be as
follows:


Director                   Ordinary Shares      % of issued share                         % of issued share
                           prior to the Issue   capital prior to the                      capital after the
                                                Issue                  Ordinary Shares    Issue
                                                                       after the           
                                                                       Issue
Robin Davies                          661,265                  1.0             825,765                  1.2

Mike Hosie                            683,590                  1.0             899,010                  1.4

John McLaughlin                     8,234,500                 12.5           8,234,500                 12.4

Neil Reed                           3,200,810                  4.9           3,200,810                  4.8






About X-Phonics plc

X-Phonics was admitted to AIM in October 2005. The Company is an independent
record label and media management company. The Company's activities include
video production, songwriting and publishing.



Currently the larger proportion of revenues are earned from audio and video
production and the provision of management services. The development of the
recording business is expected to produce further revenues.



As part of the Company's strategy to expand the recording business X-Phonics
acquired White Noise, a vehicle for the signing and development of previously
unsigned writers and artists in August 2006.



Enquiries



X-Phonics plc - 07860 500001
Mike Hosie, Managing Director



W.H. Ireland Limited - 0121 616 2101
Nicola Rayner



This information is provided by RNS, the company news service from the London
Stock Exchange.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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