Joint Venture Agreement

RNS Number:5659Q
London Asia Capital PLC
28 August 2005


For immediate release

                            LONDON ASIA CAPITAL PLC
                                        
          LAC ESTABLISHES JOINT VENTURE WITH CONSENSUS BUSINESS GROUP

London Asia Capital plc ("London Asia" or "the Company") announces that it is
entering into an agreement with Consensus Business Group Ltd ("Consensus") to
form a joint venture company providing finance and services to companies,
organisations and individuals in China and South East Asia.

LAC Consensus ("LACC"), the new joint venture company, will initially focus on
two principal investment opportunities in China:

*  pre-IPO and secondary listings
*  the commercial and residential property market

London Asia and Consensus have equal beneficial interests in LACC, controlling
40% each. LACC's management team holds the remaining 20%.

Consensus is a privately owned property and technology investment group based in
the UK. It specializes in structured finance, commercial and residential
property and innovation technology. In addition to its multi-billion pound
property portfolio, Consensus has invested over #100 million in private equity.
Its investments include a 6% stake in London Asia, acquired in the placing
carried out in July this year.

LACC operates from London Asia's offices in Singapore and Beijing. London Asia
has provided the Chief Executive for the new business, Mr Mean Phil Chong,
former Chief Financial Officer of Singapore Main-board listed Devotion
Eco-Thermal Limited, which operates in China's environmental sector. Mr Chong
previously worked for a number of businesses including Arthur Andersen, brand
management company Attwood Agencies Pte Ltd and KPMG. He holds a degree in
Accountancy from the Nanyang Technological University in Singapore.

Victor Ng and Simon Littlewood are on the Board of LACC to represent London
Asia's interest. Robert Spriddell, Corporate Development Director at Consensus,
has joined the London Asia Advisory Panel, as well as the Board of LACC.

LACC will seek capital appreciation by investing in China related companies who
are looking to IPO in the UK or the US, or in already listed Chinese businesses
which have been overlooked by the market or are trading at attractive valuations
for incoming investors. London Asia is responsible for identifying suitable
opportunities for the new venture through its existing deal flow and network of
offices across China and S.E Asia. Consensus will be responsible for arranging
the underlying financing for the deals taken on by LACC.

Additionally, LACC will explore the growing opportunities in the real estate
market in China. It will focus in particular on the development of structured
financing products for local and international corporates in China.

LACC will develop a range of services in the Chinese real estate sector,
including financial products and funds for investment in Chinese real estate,
assisting international investors in investing in Chinese real estate, and
management of commercial property.

Commenting on the joint venture, Simon Littlewood, London Asia Chief Executive,
said: "The formation of this joint venture combines our regional knowledge and
contacts with Consensus's commercial and residential property skills, its brands
and access to capital for private equity and fundraisings. This is a formidable
combination and will benefit our shareholders in a number of ways, giving London
Asia access to expertise to take advantage of the opportunities in the real
estate sector in China, and providing alternative sources of funding for our
private equity deals, which will enable us to carry out more transactions with
less dilution to our shareholders in the future. We are delighted that Robert
has agreed to join our Advisory Board, where his many years of experience and
contacts will be of great benefit to the company."

Vincent Tchenguiz, Chairman of Consensus added: "The development of the Chinese
economy in recent years has caught a number of markets somewhat unaware. The
potential of the Chinese economy is astonishing. We are delighted to be involved
in the establishment of LACC. We believe that the property and technology
markets will be the first to benefit from the increasing commercial freedom in
the world's most populous country."

For further information please visit www.londonasia.com or contact:

Simon Littlewood, Chief Executive      Jeremy Carey/John West                   
London Asia Capital                    Tavistock Communications                 
Tel: [phone]                     Tel: [phone]                       

Robert Spriddell                       Sean Bellew                              
Consensus Business Group               DBA Ltd                                  
020 7663 2420                          020-7930 8033 or 07973-23 40 40          


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 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, M&A, project and infrastructure finance and restructurings);
   and

*  Fund management

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region. These work in conjunction with our
international network in London, New York, Germany, Hong Kong and Singapore.

For further information about Consensus visit www.consensusbusiness.com



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

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