Issue of Equity

RNS Number:7995N
Europasia Education PLC
13 December 2006

13 December 2006

                             EUROPASIA EDUCATION plc
                            ("EPE" or "the Company")


                    Increased Stake in China Education Group


EPE has increased it's stake in PLUS listed China Education Group ("CEG") from
15.3% to 16.9% via the acquisition of shares, at a cost of #352,398, at 42p per
share, being the market price of the shares as listed on PLUS on 12 December.


                                Issue of equity

Notice has been received from Springleaf Investments Ltd to exercise 100,000
warrants at #1 per share, resulting in net proceeds to the Company of #100,000
and the issue of 2 million new Ordinary Shares of the Company at an issue price
of 5p per share.  Following the exercise of the warrants, Springleaf Investments
Ltd has no warrants in EPE and holds 3.5% of the ordinary shares in the Company.

Notice has been received from London Asia Capital plc to exercise 52,398
warrants at #1 per share, resulting in net proceeds to the Company of #52,398
and the issue of 1,047,960 new Ordinary Shares of the Company at an issue price
of 5p per share.  Following the exercise of the warrants, London Asia capital
plc has 400,000 EPE warrants and holds 11.6% of the ordinary shares in the
Company.


Application will be made to admit the 3,047,960 new Ordinary Shares to trading
on AIM and admission is expected to occur on 20 December 2006. The total number
of issued Ordinary Shares in the Company following the issue will be 57,008,523.



James Holmes, EPE Chairman, said "This additional investment in CEG, following
its excellent results released at the end of last month, is in line with our
strategy of seeking to increase our holding to 20%, which would enable EPE to
show its share of CEG's profits in EPE's accounts going forward. We are
continuing to talk with the holders of EPE warrants and other potential
providers of finance to enable us to hit our 20% target."



For further information visit www.europasiaeducation.com or contact:



James Holmes, Chairman                          Paul Quade

EuropAsia Education plc                         City Road Communications

020 7355 7928                                   020 7248 8010



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