Acquisition

RNS Number:2472T
Capital Ideas PLC
28 April 2008

28 April 2008

CAPT.L

                               Capital Ideas plc

                       (the "Company" or "Capital Ideas")


                                  Acquisition



The board of Capital Ideas is pleased to announce that on 25 April 2008, it
agreed to acquire a 50% stake in E2Mail, an e-mail marketing business which has
agreed to acquire certain of the assets and goodwill of Frankdata International
Marketing Limited (in administration) ("Frankdata") from its joint
administrators, both of Shipleys LLP for a total consideration of #400,000 in
cash.  #50,000 of the consideration is payable immediately with the remaining
#350,000 to be paid between now and 30 July 2008.



Frankdata is one of the UK's leading e-mail marketing businesses with over 27
million addresses on a database that it licenses from the present shareholder of
E2Mail (the "Database Licensor").  Frankdata went into administration when one
of its lenders foreclosed on a debt factoring facility that was in place,
following one of its major orders being delayed.



The assets being acquired include debtors, goodwill, equipment and software (the
"Frankdata Assets"), but exclude Frankdata's databases.  In addition, the
Database Licensor has entered into a new license whereby he has licensed the
database (previously licensed to Frankdata) to E2Mail.



The profit attributable to the Frankdata Assets and the license from the
Database Licensor amounted to approximately #49,000 in respect of the 9 month
period ended 31 March 2008 (calculated as being 50% of the aggregate profits of
E2mail and Frankdata for the same period).



The investment by Capital Ideas for its 50% stake in E2Mail is made up as
follows:



1.                  Capital Ideas will invest #5,000 in cash in return for 50%.
of the issued share capital of E2Mail and a further #45,000 by way of a loan
which will attract interest at a rate of 3% above the base rate of a bank to be
agreed upon by the parties at a later date;

2.                  Capital Ideas will be granted an option to acquire the
remaining 50% of the issued share capital of E2Mail at any time following the
second anniversary of the acquisition of the first 50% stake, at a price
relating to the profits achieved by E2Mail over that period; and

3.                  the vendors of the shares in E2Mail will receive options
over 14,357,777 ordinary shares in the capital of Capital Ideas (amounting to
approximately 5% of the present issued share capital of Capital Ideas),
exercisable at any time following the second anniversary of their grant, at a
price of 0.4 pence per share.



E2Mail will utilise the #50,000 it receives from Capital Ideas to satisfy the
initial consideration payable by it for the Frankdata Assets.



Capital Ideas Chairman, Renwick Haddow, said:  "This transaction continues our
strategy of investing in companies that are either basically sound but have been
mismanaged or at an early stage development and need funds to move to the next
stage.



"E2mail operates in a rapidly growing market and this transaction will provide
synergies and distribution opportunities for Capital Ideas' other business
interests".



For further information, please contact:




Renwick Haddow                 Capital Ideas plc                   020 7329 4000


Dan Bate                       WH Ireland Limited                  0161 832 2174


Ian Callaway                   SVS Securities plc                  020 7638 5600


Paul Quade                     CityRoad Communications             07947 186694





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