Issue of Equity

RNS Number:4441E
CES Software PLC
25 October 2004


CES SOFTWARE PLC INCREASES FINANCING FROM $46 MILLION TO $55 MILLION AND FILES 
FINAL PROSPECTUS

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWS WIRE SERVICES OR FOR 
DISSEMINATION IN THE UNITED STATES.

CES Software plc ("CES" or the "Company"), October 25, 2004 - London, England,
an AIM-quoted company (AIM:CES), a Toronto Stock Exchange listed company (TSX:
FUN) and a leading provider of skill gaming and betting exchange technology, is
pleased to announce that it has received a final receipt from the securities
regulatory authorities in the provinces of Ontario, British Columbia, Alberta
and Quebec for a prospectus qualifying 14,000,000 ordinary shares to be issued
at a price of #1.40 per share. The Company will receive aggregate gross proceeds
of #19.6 million (approximately Cdn$44.5 million) from the sale of the ordinary
shares. Together with the previously announced issues of 977,700 ordinary shares
and 2,230,500 special warrants, at Cdn$3.22 per share or special warrant, as
applicable, this increase in the proposed placing brings the overall figure for
gross financing to be raised by the Company in this round to approximately #24
million (approximately Cdn$55 million).

An application will be made for the admission to trading on the Alternative
Investment Market of the London Stock Exchange of the 14,000,000 ordinary shares
and has been made for the listing of such shares on the Toronto Stock Exchange.
The Company obtained the necessary shareholders approvals for the issue of such
shares at its extraordinary general meeting held on October 21, 2004. It is
expected that such admission will be obtained and the offering will close on or
about October 29, 2004 subject to the satisfaction of customary closing
conditions. Additionally, the prospectus also qualifies 2,230,500 ordinary
shares issuable upon the exercise of 2,230,500 previously issued special
warrants and 167,288 broker warrants issuable upon the exercise of 167,288
previously issued compensation options.

Lorne Abony, CEO of CES, remarked,
"The proceeds from this round of financing will be used for potential
acquisitions, to further expand the Company's marketing and development efforts
and for general corporate purposes."
For more information, contact:

Lorne Abony, Chief Executive Officer, Tel: [phone]

James Lanthier, Chief Financial Officer, Tel: [phone]

About CES Software Plc:

CES Software Plc ("CES") is a leading provider of person-to-person skill gaming
and exchange betting technology. CES's strategy is to provide its cutting-edge
person-to-person gaming systems to top, licensed distribution partners in
regulated markets around the world. CES is a public company, incorporated in
England and Wales, listed on the Toronto Stock Exchange under the symbol "FUN",
and quoted on the Alternative Investment Market (AIM) of the London Stock
Exchange under the symbol "CES". CES is committed to the integrity of its
business, and as such will not conduct business with gaming operators who
knowingly process sports bets from any jurisdictions where such practices are
prohibited, including the United States and Canada.



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

END
IOEUVUVRSORRUAA