Update on investment

RNS Number:5919I
Innobox PLC
11 March 2003

                                  Innobox Plc
                          ("Innobox" or the "Company")

11 March 2003


            Investment in Aerospace Composite Structures LLC ("ACS")


The purpose of this announcement is to provide an update on the Company's
investment in ACS.

The investment in ACS

To summarise the position to date, Innobox entered into a secured convertible
loan agreement with ACS on 17 January 2002 (the "Loan") whereby Innobox advanced
a sum of #200,000 to ACS.  The services of Mr Robert Bushman, Chairman of the
Company, were also provided to ACS.  In March 2002, ACS was successful in
obtaining certification from the Federal Aviation Administration for its
composite panelled air container.  ACS has "patents pending" designation in
place for its products and processes together with certain trademark
protections.  ACS has received significant interest in its composite panelled
air container products from a number of potential customers.

The balance outstanding on the loan as at 28 February 2003, including costs,
expenses and accrued interest was #245,123.

Greatstride / Brookspey / ACS

Brookspey Investment Inc. ("Brookspey") owns 98.4% of the issued share capital
of ACS.  Greatstride plc ("Greatstride") has conditionally agreed to acquire the
entire issued share capital of ACS not owned by Brookspey, representing 1.6% of
the issued share capital of ACS, and has also agreed to acquire the entire
issued share capital of Brookspey (the "Acquisition").

Acquisition consideration

The initial consideration payable under the Acquisition agreement is #8,400,000
to be satisfied by the issue and allotment of 42,000,000 ordinary shares of 1p
each in the capital of Greatstride at 20p per share.  In addition, deferred
consideration of up to #1.68m may also be payable in two equal tranches if ACS
achieves profit targets of $2.5m and $3.5m in the financial years ending 31
December 2004 and 2005 respectively, such consideration to be satisfied by the
allotment and issue of further new ordinary shares at 20p per share.

Flotation of Greatstride

Greatstride is also seeking admission to the Alternative Investment Market of
the London Stock Exchange plc ("AIM") ("Admission"), is placing 1,740,000 new
ordinary shares at 20p per share and is proposing to change its name to AeroBox
Plc.  Admission, the Acquisition and the name change of are all subject to
approval at an EGM, which will be held on 20 March 2003.  The Chairman of
Greatstride, Michael Edelson, holds 8.34% of the share capital in Greatstride
and has irrevocably undertaken to vote in favour of the Acquisition.  At
Admission, the market capitalisation of AeroBox Plc will be #15.5 million.

The Company's investment in ACS as detailed above will be converted into equity
in Brookspey immediately prior to the Acquisition.

On completion of the Acquisition, the Company will hold 4,423,902 shares in
Greatstride, representing 5.7% of the enlarged share capital on Admission.  At
the Acquisition and placing price of 20p per share, the Company's shareholding
in Greatstride will have a value of #884,780.   This represents 3.6 times the
value of the Company's investment at 28 February 2003.  In addition, the Company
will receive up to 884,780 further shares in Greatstride as deferred
consideration, having a value of #176,956 at the placing price, should ACS meet
its performance targets.

The Company is prevented from disposing of any of the shares which it holds in
Greatstride for a period of twenty-four months from the date of Admission under
the terms of the Acquisition, save in respect of a disposal of no more than 25%
of such shares after the first anniversary of Admission and 35% of such shares
after the expiry of 18 months from Admission.

A pro forma balance sheet of Innobox as at 10 March 2003, subject to the
approval of Admission and the Acquisition at the EGM of Greatstride and based on
receipt of the initial consideration but no deferred consideration, valued at
the placing and Acquisition price of 20p per share, is provided below.

Pro forma balance sheet

                                           Note                 As at                         Pro-forma
                                                      31 October 2002                     Balance Sheet
                                                          (unaudited)      Adjustments                #
                                                                    #                #
Fixed assets
Fixed asset investments                                       238,591          646,189          884,780
Current assets
Debtors                                                         7,011                             7,011
Cash at bank and in hand                                      709,930                           709,930
                                                         ------------                      ------------
                                                              716,941                           716,941
                                                         ------------                      ------------
Creditors
Amounts falling due within one year                          (90,266)                          (90,266)
                                                         ------------                      ------------
Net current assets                                            626,675                           626,675
                                                         ------------     ------------     ------------
Net assets                                                    865,266          646,189        1,511,455
                                                         ------------     ------------     ------------
Net asset value per share (pence)                                6.92                             12.09



The Chairman of Innobox, Mr Robert Bushman, will join the board of Greatstride
on Admission, subject to shareholder approval of the Acquisition.

As stated in the interim results announcement dated 31 January 2003, the board
is currently reviewing the future strategy of the Company due to the lack of
further attractive investment or acquisition opportunities in its existing
sector and it is anticipated that an announcement will be made following the
outcome of this review.

Enquiries:

Mark Jones                                     07712 634401
Chief Executive, Innobox Plc                   [e-mail]

Philip Johnson                                 0161 214 6540
Brown, Shipley & Co. Limited                   [e-mail]

Trevor Phillips                                020 7929 5599
Holborn Public Relations Limited               [e-mail]




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