Adviser to Power Projects

RNS Number:5618E
London Asia Capital PLC
28 October 2004



            London Asia Capital PLC ("London Asia" or the "Company")

                Appointment As Adviser To Chinese Power Projects


London Asia, the AIM-listed Greater China focused investment & merchant banking
group, has been appointed financial adviser to a #150 million power project in
China.

The project is for the construction of up to 1,200MW of supercritical CFB boiler
power generation plants. The project developer is Zoom Developers (P) Ltd
("Zoom"), a project development company with operations in the USA, Europe, UAE
and Asia. Engineering and related services for the project will be provided by
Wuhan Kaidi Electric Power Co. Ltd ("Kaidi"), the Company's partner firm for
power projects in China.

London Asia will be responsible for structuring and raising finance for the
project, for which it will receive fees and a stake in the joint venture project
development company set up to own the project once it has successfully
completed.

Vijay Choudhary, Chairman of Zoom Developers, said: "We have carried out similar
projects in other parts of the world, but this is our first major project in
China. China will be a significant market for us because of the huge investment
required to ensure that the power, water and waste infrastructure keeps up with
the development of its economy and the rising expectations of its people. We
selected London Asia as our partner in this project because of its strong
network and contacts within China, its experience of structuring investments
into Chinese projects and it's ability to raise funds from international
investors for Chinese projects."

Mr Chen Yilong, Chief Executive of Kaidi, said: "There are a number of
opportunities in the power sector in China as Chinese power consumption
increases with rising living standards and increased industrialization. This is
the first of several projects we are looking to finance and develop in China
with Zoom and London Asia."

Simon Littlewood, London Asia Chief Executive, said: "This is in line with our
strategy of generating consulting fee income alongside our direct investment
activities. The power, water and waste sectors in China are producing a number
of opportunities for us to act as both an adviser and an investor of our own
funds and the fund we announced earlier this week."

On Tuesday 26 October London Asia announced that it had reached an agreement
with Global Emerging Markets, the New York based investment group, to form a
US$200 million private equity fund to focus on late stage investing in middle
market private companies in the Greater China region, including China, Taiwan,
Hong Kong, and S.E Asia.

ENQUIRIES:
Simon Littlewood, CEO Tel [phone]

Paul McManus, Binns & Co Tel [phone]
Mob: [phone]

About Zoom Developers (P) Ltd
Founded in 1991, Zoom's primary focus is developing industrial and
infrastructure projects, with operations in the USA, Europe, UAE and Asia. It
has expertise and investments in industrial and infrastructure development,
technology, acquisitions, asset restructuring, project financing and other
related fields, and has successfully implemented projects in the areas of
rehabilitation of water supply pipelines by internal lining and coating of
pipelines (including projects aided by World Bank), laying of optical fibre
cables, tunnelling, mining, site development and turnkey project management. The
company is also involved in developing infrastructure projects such as urban
utilities for water supply and sewerage treatment, roads and bridges, ports and
terminals

Through its associated brands, iSmart International and Astuto Networks, it is
involved in smart cards, security, e-governance and telecommunications. For
additional information, see www.zoomdevelopers.com.

About Wuhan Kaidi Electric Power Co. Ltd
Headquartered in Wuhan, Kaidi was founded in 1993 and in 1999 listed on China's
Shenzhen Stock Exchange, with a current market capitalization of over #130
million.

Kaidi's core business is the development and application of new technologies and
products for environmental protection and power generation. It carries out EPC
contracting of engineering design, complete plant construction, installation,
commissioning and training for coal burning power plants, flue gas
desulphurization projects, clean coal burning power plant technologies and
domestic waste treatment and power generation projects. For additional
information, see www.china-kaidi.com.

About London Asia Capital

London Asia is a leading AIM listed investment and merchant banking group
focused on the SME market in Greater China.

London Asia has identified that as a result of the fast growing Chinese economy
and an underdeveloped financial services industry, there is strong demand for
both capital and skilled financial advisory services in China, especially among
small-to-medium sized enterprises.

London Asia operates two principal businesses within Greater China:

   * Investment in profitable businesses with exits via IPO or trade sale;
   * Investment Banking services, mainly corporate finance advisory (fund
    raisings, IPO's and M&A) and fund management

London Asia has a growing list of investments, paid for via a mix of cash and
London Asia shares, focused on distinct industry sectors:

   * Financial Services
   * Media
   * Information technology & communications
   * Infrastructure, energy & natural resources & environment

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region, as well as alliances with a number of Chinese
business parks which gives London Asia access to over 7,000 Chinese businesses.
These provide direct access to investment opportunities, close relationships
with corporate clients, a good level of control over existing investments,
access to local market intelligence as well as providing leverage through a
network of partners. These work in conjunction with our international network in
London, New York, Singapore, Hong Kong and Taiwan.




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