Issue of Equity

RNS Number:2145P
Tecteon PLC
01 September 2003

                                  TECTEON PLC      

                         Placing and Additional Listing

Tecteon plc, the AIM quoted company developing patented echo cancellation
software for the telecoms industry, announces that it has raised an additional
#500,000 in a placing of new shares at 5p to fund the final development phase.

Tecteon has made application for admission of 10,000,000 new ordinary shares of
5p each in the Company to trading on AIM and dealings in the new ordinary shares
are expected to commence on 4 September 2003.

Masoud Alikhani, Chairman of Tecteon commented:

"This funding will enable Tecteon to finalise development of the product range
and to extend the marketing programme.  More importantly our ability to raise
new capital at a premium to the current market price shows the confidence that
the investors have in the product.  Product marketing to date has gone well and
we are in discussion with a number of interested parties and are optimistic that
initial orders will be received in the near future."



For further information contact:


Masoud Ahmadi, Managing Director
Tecteon plc                                                020 7408 1181


Michael Padley / Susan Scott
Bankside Consultants                                       020 7444 4140






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