Loan Conversion and Change in Share Capital

                                                                                        18/08/2008

                                                                         GB00B1G17S00/GBP/PLUS-exn

                                                                                                  

                                                 

                                      QUERCUS PUBLISHING PLC

                                                 

                            LOAN CONVERSION AND CHANGE IN SHARE CAPITAL

                                                 

Quercus Publishing Plc announces that the issued share capital of the Company has increased to 11,

620,192  ordinary  shares,  following  the allotment of 7000  ordinary  shares  of  0.8p  each  on

conversion of GBP2,800 nominal of Unsecured Loan Stock at a price of 40p.



The Directors' total beneficial shareholding remains 5,448,390 ordinary shares of 0.8p each in the

company representing 48.83% of the current issued share capital.



The Directors of Quercus Publishing Plc accept responsibility for this announcement.



CONTACT DETAILS:



QUERCUS PUBLISHING PLC           Tel. : 020 7291 7200

Mark Smith, CEO



REDLEAF COMMUNICATIONS           Tel.: 020 7822 0200

Emma Kane/Sanna Sumner



ST HELEN'S CAPITAL PLC           Tel.: 020 7628 5582

Duncan Vasey/Barry Hocken