Investment update

RNS Number:5244A
London Asia Capital PLC
06 July 2004

6th July 2004

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

                        Dividend From Chinese Investment
                                New Investments

New Investments

London Asia Capital, the AIM-listed Greater China focused investment banking
business, is pleased to announce further additions to its Greater China
investment portfolio, which takes the number of investments in Greater China to
date to twelve, for a total investment of over #4.8 million.

London Asia has invested #65,000 in a Chinese telecom equipment design &
production business. Its products are sold throughout China as well as exported
overseas. In 2003 the company saw profit growth of over 70% and it is currently
applying for listing on the Singapore Stock Exchange.

London Asia has also invested #55,000 in a profitable Chinese company
specialising in heat transfer technologies for thermal energy utilisation and
recovery applications, largely for petrochemical, iron and steelwork engineering
industries. Clients include BP, BASF and Dupont. Established in 1997, the
business is seeking to list on the Singapore Stock Market in the next 12 months.

London Asia also announces an increase in its stake in Europasia Education plc,
the UK AIM listed education business, to 5.6%.  London Asia made the additional
investment of #78,000 at 1.20p per share in a placing in early June.

Beijing Success

As part of the listing process of Beijing Success ("Success"), the financial
software business in which London Asia holds a 51% stake, a new holding company,
China Financial Services Ltd ("CFS"), has been formed in Singapore and the
business and assets of Success have been transferred to CFS.  New shares were
issued by CFS to investors to fund part of the listing and restructuring costs,
so that London Asia's holding in CFS is now 48%.

Prior to the transfer, a dividend of RMB16 million was paid to Success
shareholders, of which London Asia is entitled to RMB8 million (#530,000). The
Dividend will be kept in Chinese currency for further investment in the region.

Simon Littlewood, Chief Executive, said:

"We are pleased that London Asia Capital is now in such a strong position.
During the last six months we have invested over #2 million in seven companies
and increased our stakes in two investments.  Acquisitions have been paid for
via cash of #0.9 million and #1.2 million in London Asia shares issued at an
average price of 18.6p per share.  Since the 2003 year end, we have raised over
#2.3 million in new money via shareholders converting warrants and the placing
carried out in February 2004.  In addition, we have the dividend from Beijing
Success, which demonstrates the benefits of our stated strategy of investing in
profitable businesses, generating revenues for London Asia through dividends as
well as potential exits and consultancy fees."

"As announced in the Chairman's Statement issued with our 2003 accounts, our
investment strategy is to take advantage of the large number of investment
opportunities available to us through our network in China. With the current
shortage of capital available to high growth businesses in China and the
strength of the Pound against Asian currencies, we are well positioned to build
up a portfolio of up to 30 late stage investments in Greater China over the next
two years.

"We are further encouraged by the successful opening of the Shenzhen Stock
Exchange's SME Board last month, supplementing China's existing two stock
exchanges which have a combined total of over 1,300 listed companies. We hope
this will aid us as we seek exits for our investments from 2006 onwards, when we
believe there will be the opportunity to list some of them on stock markets
within China, or to sell on to trade buyers or incoming investors as people
outside China become more aware of the opportunities there."

ENQUIRIES:

Simon Littlewood, CEO, London Asia Capital                Tel [phone]
Paul McManus, Binns & Co PR Ltd                           Tel [phone]
                                                          Mob [phone]

About London Asia Capital plc

London Asia Capital plc ("London Asia") is a leading AIM listed investment and
financial advisory company focused on the Greater China SME market (China,
Taiwan, Hong Kong, and S.E. Asia).

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)

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 & telecom
*         Infrastructure & natural resources

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region which provides 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. London Asia also has
alliances with Chinese business parks, which gives London Asia access to over
7,000 Chinese businesses.

About China Financial Services

Incorporated in Singapore, CFS is a financial services business focused on the
Chinese market.  It is currently principally engaged, through its wholly owned
Chinese subsidiary Beijing Success Technology Co Ltd ("Beijing Success"), in the
development, distribution and sale of its own proprietary securities analysis
software for the Chinese financial services industry and related securities data
services. Beijing Success also provides specialist customisation services of its
proprietary software targeted at Chinese high net worth individuals and
institutional investors.  To date, Beijing Success has sold over 20,000 licences
for its products in China.


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