Posting of Circular

RNS Number:0886L
Magnum Power PLC
14 May 2003


FOR IMMEDIATE RELEASE                                            14 May 2003



                  MAGNUM POWER PLC ("Magnum" or the "Company")


                      Posting of Circular to Shareholders


Following the announcement on 7 April 2003 of a conditional #200,000
subscription for new ordinary shares (the "Share Subscription"), the Company
announces that a circular, dated 14 May 2003 (the "Circular") containing details
of the proposed Share Subscription, has been posted to shareholders.


In consideration of their proposed investment of #200,000 in the Company, the
Investors will be issued with new ordinary shares which will represent 80 per
cent. of the enlarged issued share capital of the Company following the share
issue. To enable this, it is proposed to reorganise the share capital of the
Company (the "Capital Reorganisation") by means of a sub-division and conversion
of each of the existing ordinary shares of 10p each into one share of 0.01p and
one deferred share of 9.99p.  Following the issue and allotment to the Investors
of 400,000,002 shares of 0.01p all of the issued and unissued shares of 0.01p
will be consolidated into New Ordinary Shares of 1p each on the basis of one New
Ordinary Share for every 100 shares of 0.01p held.


As a result of the Capital Reorganisation an existing holding of 100 ordinary
shares of 10p will be converted into a holding of 1 New Ordinary Share of 1p and
a number of deferred shares of effectively no value.  Shareholders holding less
than 100 existing ordinary shares of 10p will not receive any New Ordinary
Shares following the Capital Reorganisation.


In addition to the details of the Capital Reorganisation, the Circular will also
contain details of other related proposals namely a waiver of the Investors'
obligation to make an offer to other shareholders under Rule 9 of the City Code,
an alteration to the Articles of Association and a change of the Company's name
to RAM Investment Group plc.


The resolutions necessary for the Share Subscription, the Capital Reorganisation
and the other proposals referred to above will be considered at an Extraordinary
General Meeting of the Company to be held at the offices of Shepherd +
Wedderburn, Saltire Court, 20 Castle Terrace, Edinburgh EH1 2ET  at 10.00 am on
9 June  2003.


If the resolutions are approved by shareholders at the Extraordinary General
Meeting it is expected that trading in the New Ordinary Shares on AIM will
commence on 10 June 2003.


For further information please contact:

Edward Adams                    Magnum Power plc               020 7209 1324
Roland Cornish/ Rod Venables    Beaumont Cornish Limited       020 7628 3396








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