Acquisition

RNS Number:7817T
London Asia Capital PLC
02 January 2004

2nd January 2004


            LONDON ASIA CAPITAL PLC ("London Asia" or the "Company")


Stake in profitable financial software business increased to 51%


London Asia is pleased to announce that it has increased its stake in Beijing
Success Development Technology Co. Ltd ("Success"), the profitable Chinese
financial software business in which it already holds 25%, to 51% following the
finalisation of the exercise of its option.  Both Victor Ng and Simon Littlewood
have been appointed to the Success Board.


Consideration for the acquisition, which amounted to #2.0 million, was satisfied
via the issue of 7,688,494 LAC ordinary shares and a cash payment of #0.7
million.  Application has been made for the new shares to be traded on AIM, with
admission expected on 10th January 2004.  The cost to the Company of exercising
the option is considerably less than previously budgeted as a result of the
recent fall in the Chinese currency relative to the pound, and the increase in
the London Asia share price,  resulting in less shares having to be issued and a
smaller cash payment.  Under the option agreement, the price of the shares
issued as consideration is based on the average of the mid market price in the
twenty business days prior to the exercise of the option, which resulted in an
actual issue price for the 7.69m shares of 17.31p.


Founded in 1999, Success provides securities analysis tools and related data
services in China. It has to date sold approximately 14,000 software licences.
In September 2003 it announced profits for the twelve months to 30th June 2003
of #1.2 million, with cash at bank of over #0.5 million.  Success intends to
implement a dividend policy equal to 10% of annual profits going forward.
London Asia's 51% stake has cost #2.2 million, of which approximately one third
was paid in cash and two thirds via the issue of London Asia shares.


Victor Ng, Director of China Operations said: "Success has a strong management
team, and customer base of over 14,000 Chinese investors who regularly trade on
the Chinese stock market.  We are assisting Success in identifying potential
acquisitions in the financial services sector within China to take advantage of
its leading software product, customer base and strong cash flow, and looking at
expanding its operations into related fields, such as fund management, in
conjunction with London Asia's other activities and partners in China".


Mi Dengfeng, Chief Executive of Success, said: ""We are very glad to be working
with London Asia.  We will continue our mission of establishing Success as a
leading provider of services for investors in the Chinese securities markets,
which are developing rapidly as a reslt of China's booming economy. We will
definitely bring success to both the company and all our investors."


Simon Littlewood, Chief Executive of London Asia, said: "The recent fall in the
value of the US dollar, to which the Chinese currency is linked, has created a
good buying opportunity for UK based businesses such as London Asia looking to
invest in China.  Our original investment in Success in November 2002 was done
at an exchange rate of RMB12 to the pound, with the exercise of the option
closed at an exchange rate of RMB14.7, a decline of over 20%, reducing the
consideration payable by us under the option.  We are looking forward to
completing a number of deals in the first half of 2004 to take advantage of this
current buying opportunity."


ENQUIRIES:

Paul Quade, City Road Communications                    Tel [phone]

7th Floor, Roman House

Wood Street

London EC2Y 5BA



About London Asia Capital plc

London Asia is an AIM listed (code LDC) investment business, focused on
investing in established, profitable businesses in the Greater China region
which have the potential to grow rapidly and benefit from the management skills
which the London Asia management team can bring, particularly our experience in
bringing businesses to capital markets both in Europe and Asia. The Company has
offices and associates in London, China, Hong Kong, Taiwan and Singapore.  Visit
www.londonasiacapital.com for more information on the Company.


About Beijing Success Technology Co Ltd

Founded in Beijing in January 1999, Success provides securities analysis tools
and related data services in China.  Success began as a reseller of third party
securities analysis products, building up a network of customers, a sales team,
and experience in the market place, primarily in Beijing.  In late 2000, Success
launched its first product, M-Plan, a basic analysis product which it sold into
the Beijing market.   Since January 2002, Success has developed a series of
analysis products and services, from basic to highly sophisticated tailored
products, in parallel with the development of its own sales team and the
appointment of over twenty regional distributors to cover most of the major
cities within China.

Customers include private investors, securities companies, institutional
investors, listed companies, advisory companies, data service companies,
training institutes and media companies.  Prices vary from #120 for the basic
product for private investors to #4,600 for a full service system for
institutions.

Success is continuing to develop its product range, working with leading
software development houses in the sector in China, to ensure its products
continue to meet the developing market needs and expand its sales.  Recent new
products include Top Spinner (Gu Shi Dian Feng) and The Ultimate Analyzer
Professional Version (Mou Lue Ban).

Following the investment by London Asia in November 2002, Simon Littlewood and
Victor Ng (based in Beijing) were appointed to the Success Board to represent
London Asia's interests and assist in the development of the business.

Visit www.jxchina.com for additional information (Chinese language only).

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