April 5, 2010 (FinancialWire) — MGT Capital Investments, Inc. (AMEX: MGT), a holding company, said it had a difficult 2009.

Tim Paterson-Brown, chairman and chief executive officer of MGT Capital Investments noted that "2009 has been a difficult year for MGT and its operating companies. Following a detailed strategic review we have reduced our ongoing operating cost base and have disposed of our investments in Medicexchange, XShares, Hipcricket and Eurindia and we are focussing our cash and resources on our investment holdings in Medicsight PLC and Moneygate Group Ltd."

Medicsight PLC, which is traded on the AIM market of the London Stock Exchange (AIM: MDST), in which MGT holds 86 million shares (representing 55% of the issued share capital), is a leading developer of computer-aided detection  and image analysis software for the medical imaging market. Medicsight recently announced its year-end results and noted its healthy cash position. In addition it noted that it is working with regulatory authorities in the United States (the FDA) and Japan (the MHLW) to have its ColonCAD products approved for clinical use in both jurisdictions. Medicsight received a second AI letter from the FDA in January 2010, and is confident in responding within the required timeframe. The company recently signed a global distribution agreement with MEDRAD Inc., to distribute the company's new MedicCO2LON insufflator product.

Moneygate Group Ltd., a privately held company of which MGT holds 49% of the issued share capital is a UK-based financial services business which provides retail customers with instant access to a whole-of-market range of financial products, a nationwide network of independent financial advisers and a strong back office team of planners, researchers and customer management staff.

At December 31, 2009, MGT had a consolidated cash balance of $22.2 million, which together with the proceeds from the disposal of Medicexchange, XShares, Hipcricket and Eurindia, and a reduced operating cost base, a reduction of 42% on 2008 and further initiatives implemented in 2010, means that the MGT group has a strong balance sheet and cash position.

Drs Peter Fielding and Alan Miller have resigned from the board. Both have been independent directors over the previous seven years.

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