Fund raising update

RNS Number:6672L
London Asia Capital PLC
29 May 2003

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



Fund raising update


We have previously announced that the Company was seeking to raise additional
funds via the issue of convertible loan notes to ensure that the Company has
sufficient funds to achieve its objective of building a quality portfolio of
China focused investments.  I am pleased to announce that, despite the very
difficult fund raising environment, the Company has raised additional funds via
the issue of #200,000 of 10% Convertible Loan Notes ("Loan Notes"), with a
conversion price of 5p per share and warrants attached, also exercisable at 5p.
The Loan Notes are redeemable at the option of the Company, but if not converted
will automatically convert into ordinary shares on 24th March 2008.



Scarborough Development Group plc ("SDG"), an international property development
and investment group with regional operations in Edinburgh, Belfast, Leeds and
London, has taken up #50,000 of the Loan Note. SDG has previously undertaken
commercial developments in Europe, and recently opened an office in Shenzhen,
China. SDG is headed by Kevin McCabe, the well known entrepreneur and Chairman
of UK listed Sheffield United plc, Teesland plc and Fairbriar plc.





Said Simon Littlewood, Chief Executive of London Asia: "We are delighted to
welcome our new investors, and the confidence they have shown in our business
plan by investing alongside the directors in this funding round.  Whilst the
SARS outbreak has had the effect of temporarily slowing down our ability to
complete deals in the Greater China region, it has also thrown up a number of
attractive opportunities which we are currently exploring."





ENQUIRIES:



Simon Littlewood, Chief Executive 020 7486 4297
Graeme Thom, Grant Thornton Corporate Finance 020 7383 5100



About Scarborough Development Group plc ("SDG")



SDG is a UK headquartered property company with a #1bn development programme.
SDG is one of the UK's leading independent private development companies with
interest overseas in Europe and China.  The Group has recently established a new
subsidiary to promote and undertake commercial and residential projects in
China. Over the last few years SDG has built up its knowledge of the Far East,
principally as a result of its association with Centrepoint Properties Limited,
a Singaporean corporation. For additional information, see www.sdgroup-plc.com .











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