Dunn-line

07 December 2004



DUNN-LINE PLC

("Dunn-Line" or "the Group")





Placing of 70,000,000 Placing Shares of 0.1p at 3p per Placing Share and
Admission to trading on AIM



Dunn-Line is a bus and coach operator, which was founded in 1984 by its present
Chief Executive, Bob Dunn and operates principally out of two depots, in
Nottinghamshire and Durham. The Group has a fleet of 113 vehicles, operating
local and school bus services in the East Midlands, long distance coach services
on behalf of National Express Group PLC ("National Express") and providing buses
and coaches for Spot Hire work.



KEY POINTS



* Net proceeds from the Placing of approximately #1.53 million will be
used to provide additional working capital and to fund new contracts.



* The Placing Shares will represent approximately 33.63% of the
Enlarged Share Capital and, at the Placing price Dunn-Line will have a market
capitalisation of #6.24 million.



* Three directors - Scott Dunn, Christopher Ross and Graham Spooner -
are subscribing for an aggregate total of 2,866,666 as part of the Placing. No
existing shareholders are selling shares in the Placing.



* In the year ended 30 November 2003 the Group achieved revenues of
#12.98 million and an operating profit from continuing operations, before
exceptional items, of #553,000. In the seven months to 30 June 2004, revenues
were #6.49 million and the operating profit before exceptional items was
#888,000.



* Bonus Issue of new Ordinary Shares to existing (family) shareholders
if profit before taxation exceeds #1.0 million in the year ending 30 November
2005



* Dealings in the Group's shares on AIM begin today (7 December 2004)



* City Financial Associates is the Group's Nominated Adviser and the
Broker to the issue is Seymour Pierce Ellis.





Bob Dunn, Chief Executive, comments:



"I am delighted by the response to our Placing and we look forward to life as an
AIM listed company. The funds raised through the Placing will allow us to
continue the group's development, while our status as a listed company will be
of significant benefit to us as we bid for future contracts."