Convertible Bond Issue

RNS Number:9000T
CEC UNET PLC
07 May 2008





                   CEC Unet announces convertible bond issue


London, Beijing, May 7, 2008: CEC Unet plc ("CEC" or "Company"), the Chinese
mobile media services company listed on AIM (AIM: CECU) today announces a
private placement of US$3.2 million convertible bonds (the "Initial Bonds") to
Evenstar Master Fund SPC, on behalf of Evenstar Master Sub-Fund I Segregated
Portfolio, a Hong Kong based Greater China investment fund ("Evenstar").

The Company will be creating up to US$10,000,000 principal amount of unsecured
convertible bonds ("Bonds") and Evenstar has the option to subscribe for the
balance of US$6.8 million of the Bonds within 365 business days. The Initial
Bonds were issued on May 6, 2008 and are due for repayment on May 6, 2013. Any
future issues will be repayable five years from the date of such issuances.

The Bonds pay a coupon of 3.5 per cent per annum, and are convertible at the
bondholder's request at any time.

The initial conversion price of the Bonds, subjected to adjustments, is
US$0.0745 (or approximately 3.756 pence), which represents 110 per cent of the
30 day volume weighted average price (VWAP) prior to the date of issue of the
Initial Bonds. The conversion price also represents a premium of approximately
30% to the previous day closing price of 2.880 pence; and approximately 28% to
the previous 5-day average closing price of 2.928 pence

CEC Unet has warranted to Evenstar, amongst other things, that profit before tax
for the core business will be no less than RMB15 million (#1.05 million) for
2008 and RMB 20 million (#1.4 million) for 2009. In the event that these
performance criteria are not met, the bondholder may demand immediate repayment
(amongst other redemption rights), in whole or in part, of the Bonds or for
reset of conversion price.

The proceeds of the Bonds will be used to expand CEC Unet's mobile top up
business in Mainland China. At present, the Company's top-up business is
experiencing tremendous growth in its traditional operating base of Henan
Province, and its growth market of Guangdong Province. In Henan, the Company is
diversifying revenues with the sale of new mobile value added services through
its existing retail distribution network. In Guangdong, the Company is quickly
expanding the scope of its mobile top up operations. On May 1, 2008, the daily
top-up sales in Guangdong broke RMB 12.8 million. Monthly sales, meanwhile, have
increased by 728% between December 2007 and April 2008. The Company has launched
services in Beijing, the host city of the 2008 summer Olympic Games, and is
prepared to meet increased demand during the Olympic Games.

To facilitate the issuance of the Bonds for the Company, Sun Media Investment
Holdings Limited, Nextmart, Inc. and Mr. Tom Jones entered into the stock
lending agreement with Evenstar, and have transferred, for the consideration of
Euro1 to each of the lenders, an aggregate 36,000,000 existing ordinary shares in
the Company to Evenstar. Evenstar will return these shares for nil consideration
in the event that the Bonds are fully repaid or converted and new ordinary
shares issued by the Company. Following this transfer, the interests of certain
directors of the Company have changed as follows:


Dr. Bruno Wu        29,954,993 ordinary shares representing 5.54% of the issued 
                    share capital

Tom Jones           4,264,610 ordinary shares representing 0.79% of the issued 
                    share capital



As a result of the above arrangement, Evenstar Master Fund Segregated Portfolio
Company now holds 36,000,000 Ordinary Shares representing 6.7 per cent. of the
issued share capital of the Company and, the full conversion of the Initial
Bonds represents up to 42,953,020 Ordinary Shares or 7.4 per cent. of the
enlarged issued ordinary share capital.

The Company has become aware of a discrepancy between the current issued
ordinary share capital and the number of shares admitted to trading on AIM. On 1
December 2006 the Company announced the acquisition of 21CN Business News Agency
Limited and on 26 April 2007 it announced an investment in Les50ns (Holdings)
Limited. The aggregate consideration for these two actions was the issue of
8,137,255 ordinary shares in the Company, as announced at the time. However,
application for these shares to be admitted to trading on AIM was not completed
and such application has therefore now been made, with the ordinary shares
expected to be admitted to trading on AIM with effect from 14 May 2008.


Mr Li Gang, Chief Executive Officer, commented:

"Today's announcement illustrates the support for CEC Unet's growth strategy,
and validates the Company's business model in becoming the premier mobile and
cross-medium electronic payment solutions provider in China. With this fund
raising, we will further fund our growth objectives to roll out top up services
to mobile users in China by expanding into new provinces, and strengthen our
competitive advantages in existing markets such as Henan, Guangdong and Beijing".


-ends-


Enquiries:

Brunswick Group LLP                               020 7404 5959
James Hogan / Carole Cable

Blue Oar Securities
William Vandyk                                    020 7448 4400


About CEC Unet:

CEC Unet Plc (AIM: CECU) is a Chinese mobile media and services company based
out of Beijing. CEC Unet is focused on two related, but separate areas in
China's mobile industry: content and services, and distribution and payment.

With our unique combination of assets, distribution network and highly
experienced management we are in a position to capitalise on an historic
opportunity in China's mobile services industry.






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

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