Disposal

RNS Number:7629L
Trading Exchange (The) PLC
3 May 2005


3 May 2005



                            The Trading Exchange plc


             Proposed Disposal of the Trading Exchange (UK) Limited


The Board announced on 22 November 2004 that as part of the ongoing strategic
review started in June 2004, that it was asked in October 2004 by its major
shareholders to evaluate all strategic options in order to deliver maximum
shareholder value. On 21 December 2004, the Board confirmed that it was
progressing discussions regarding the divestment or merger of the existing
exchange business.

In line with this stated strategy, the Board announces today that The Trading
Exchange plc has exchanged conditional contracts with Intuition Capital Limited
for the sale of the entire issued share capital of the Group's subsidiary, The
Trading Exchange (UK) Limited (completion of the disposal is conditional upon
its approval by the Shareholders). The Trading Exchange plc has agreed an offer
price of #125,000 for the equity share capital of The Trading Exchange (UK)
Limited all to be paid in cash on Completion. Intuition Capital Limited agrees
that it shall have no recourse against the Company following completion of the
Disposal in respect of certain agreed liabilities, subject to there being
#217,000 of net current assets within the business at 30th April 2005.

The Subsidiary posted a loss of #3,078,614 in the year to 31 December 2004, this
included re-organisation costs of #427,850 and a charge of #755,209 attributable
to impairment of fixed assets under FRS 11, reducing the fixed asset value in
the Subsidiary to nil.

The cash received from the Disposal together with the cash remaining in The
Trading Exchange plc will be used to pursue the Company's investment strategy.

The Company is aware that following the Disposal that it will be treated as an
investing company pursuant to Rule 15 of the AIM Rules and in terms of Rule 14
of the AIM Rules, following the Disposal it must make an acquisition or
acquisitions within 12 months that constitute a reverse takeover under the AIM
Rules. As announced on 21 December 2004, the Company remains in discussion with
a third party concerning an acquisition which would constitute a reverse
takeover.



Transaction Process and Timetable


The transaction requires approval from the shareholders of The Trading Exchange
plc.


A circular containing details of the sale and convening an Extraordinary General
Meeting will be posted to shareholders today.


The expected timetable for the proposed disposal, including the Extraordinary
General Meeting, which is set out in the circular, is summarised below:


Last time and date for receipt of forms of proxy....... 10 a.m. on 15th May 2005

Extraordinary general meeting...........................10 a.m. on 17th May 2005

Expected date of Completion ................................... 17th May 2005








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