Investment in Asia Power

RNS Number:9794J
London Asia Capital PLC
21 March 2005



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

                  Investment in Singapore Listed Power Company

London Asia, the Greater China focused investment and merchant banking group,
has taken a 10% holding in Singapore stock market listed Asia Power Corp. Ltd
("Asia Power") at a cost of #1.7 million.

Asia Power is listed on the main Board of the Singapore Stock Exchange, with a
market capitalisation of #16.3 million. It invests in power plants, provides
related services and technology, and management consulting to the energy sector
in China. It currently owns stakes in six power stations in China, and in
January 2005 announced a joint venture to develop wind power stations in China.

The investment was made via the acquisition of 100% of Acme Rate Asset Ltd ("ARA
Ltd"), a British Virgin Islands incorporated company, in exchange for 7.57
million new London Asia ordinary shares. ARA Ltd owns 35 million Asia Power
ordinary shares, equal to 10% of Asia Powers ordinary issued share capital.
Application has been made to admit the new ordinary shares to trading on AIM and
admission is expected on 24th March 2005.

For the year ended 31st December 2004, Asia Power achieved post tax profits of
S$5.45 million (#1.75 million), and had net assets of S$58.14 million (#18.6
million), equivalent to 16.6 cents per share.

Victor Ng, director of London Asia's Greater China operations, is an Independent
Director of Asia Power. He said: "Clean power generation is becoming
increasingly important in China, as well as the rest of the world, with the
rising costs of oil and the realisation of the effects on the environment of
fossil fuel use. Asia Power's recent move into the wind energy sector in China
is one of several projects they are looking at in the renewable energy field."

Simon Littlewood, London Asia Chief Executive, said: "Last week we announced
London Asia has been appointed as preferred corporate finance advisor to over
US$1 billion of energy and environment related projects in China. Our investment
in Asia Power provides us with a potential exit route and source of funding for
some of those deals, a management team with many years experience in the energy
sector in China, access to technology and consulting services, as well as a
dividend income stream."

ENQUIRIES:

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

Jonathan Wright, Seymour Pierce     Tel: [phone]

About Asia Power

Asia Power listed on the main Board of the Singapore Stock Exchange in November
1999. It's strategy is to invest in low-risk, profitable power projects in
China. The Group is involved in the ownership, management and operation of six
power plants in various provinces in China, two power-related technology
companies and a power-related management consulting company.

In February 2005 Asia Power raised #1.44 million to invest in a wind power joint
venture in China.

Existing investments are as follows:

   * Heilongjiang Asiapower Xinbao Heating & Power Co Ltd - a coal-fired
    combined heat-and-power plant with a total installed capacity of 225 MW.
    Asia Power owns 51%.
   * Asia Power (Neijiang) Hydroelectricity Co Ltd - a hydropower plant
    located in the city of Neijiang, Sichuan Province. Neijiang has an installed
    capacity of 13.5 MW. Asia Power owns 60%.
   * Changzhou Suyuan Electric Power Co Ltd - owns, manages and operates two
    peaking power plants in Jiangsu Province with a total installed capacity of
    99 MW. Asia Power holds a 25% stake. Asia Power owns 25%.
   * Changzhou Huayuan Electric Power Co Ltd - develops, manages and operates
    a peak-load, combined-cycle power plant in Changzhou City, Jiangsu Province,
    with a total installed capacity of 59.6 MW.
   * Shenzhen NARI Technologies Co Ltd - a power-related technology company
    specialising in the design, manufacture and assembly of computerised
    automation systems used for the regulation of electricity flow and
    protection of power grid systems. Asia Power owns 35%.
   * Sichuan Anning River Energy Development Co Ltd - has undertaken to build
    three hydropower stations along Anning River. The Sankeshu hydropower
    station at a total installed capacity of 52 MW is currently under
    construction. Asia Power (Neijiang) Hydroelectricity Co Ltd holds a 30%
    stake.
   * Shanghai Witlong Electric Co Ltd - manufactures and distributes power
    automation systems and auxiliary equipment used by electric power
    regulating, generation and transmission facilities as well as providing
    engineering consultation services on related power projects. Asia Power
    holds a 33.3% stake.
   * Asia Power (Shanghai) Management Consulting Co Ltd - provides
    power-related business consultation and management services as well as to
    assist in Asia Power's management of power plants and business development
    in China. Asia Power owns 100%.

For additional information, see www.asiapower.com.sg

About London Asia Capital plc

London Asia is an 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 three principal businesses:

   * Investment of own funds in profitable businesses in Greater China, 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 a significant number of
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 and Hong Kong.



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

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