Disposal

RNS Number:5037K
Victory Corporation PLC
29 April 2003



        Victory Corporation plc ("Victory Corporation" or "the Company")

                           Disposal of Capo Business


Further to the announcement on 4th April 2003 that the Company was in advanced
negotiations to sell Capo, a non-core business, the Board is pleased to announce
that it has sold Capo to GW 385 Limited, a company set up by the Capo management
and a third party investor.

Capo, which has been sold for a nominal sum, had net liabilities at 31st March
2002 of #18,357,000. The estimated trading loss for Capo in the year ended 31st
March 2003 is #1,000,000 against a loss of #575,000 in the previous financial
year. The overall loss on disposal will amount to approximately #2,600,000.

As part of the sale, Victory Corporation has provided a #900,000 working capital
facility to GW 385 Limited, supported by #350,000 in guarantees from the
directors of GW 385 Limited. The facility reduces on an annual basis, and falls
away to nil by 31st May 2009.

In the event of any subsequent disposal of the business by GW 385 Limited,
Victory Corporation, as part of the sale consideration, has a call option over
25% of its shares.

As the disposal is a related party transaction under the AIM Rules, the
Directors of Victory Corporation consider, having consulted with Seymour Pierce
Limited, the Company's nominated adviser, that the terms of the transaction are
fair and reasonable insofar as the Company's shareholders are concerned.

With the sale of Capo, Management are confident that the strategy of the Group
will deliver profitable growth going forward.


Enquiries:

John Jackson, Chairman, Victory Corporation plc           01243 622226

Clive Bruce, Group Finance, Victory Corporation plc       01243 622226

Mark Percy, Seymour Pierce Limited                       0207 648 8700

David Simonson or Claire Machocia, Merlin Financial      0207 606 1244
Communications

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

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