Set-up of US Operations

RNS Number:2901B
London Asia Capital PLC
28 July 2004


28 July 2004

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

Set-up of US Operations
Contract Win

London Asia Capital, the AIM-listed Greater China focused investment banking
business, is pleased to announce the formation of London Asia, (US) Inc., a
wholly owned subsidiary based in New York, which has been set up to assist its
portfolio companies access the US capital markets, both for follow on funding
and potential Stock Market listing.

Joe Pellitteri, who has over 10 years experience working on Wall Street for
Dresdner Kleinwort Wasserstein, BZW (now CSFB), SBC Warburg (now UBS) and Kidder
Peabody, is to head London Asia's US operations.

Mr. Pellitteri has in-depth knowledge of mergers and acquisitions; public and
private equity; restructuring and reorganisations; acquisition financing and
equity and high yield derivatives. He has transaction experience involving
companies headquartered and/or listed in the US, UK, Germany, Switzerland,
France, Canada, South Korea, Japan, Indonesia, Hong Kong and China across a
broad range of industries, including telecommunications, technology, general
industrial, industrial technology and natural resources.

Joe Pelliteri said: "I am delighted to be joining the company at this exciting
time in its development. US investors are familiar with the opportunities in
China, with a number of Chinese companies having listed on the US capital
markets in the last two years. There are already a number of US venture
capitalists looking at the Chinese market, such as Citigroup, Fidelity, Goldman
Sachs, H&Q, IDG, Morgan Stanley, the Carlyle Group and Newbridge, who could be
potential co-investors in or acquirers of our projects."


Portfolio Company Contract Win

Asia Water Co. Ltd ("Asia Water"), a subsidiary of Capitalink Pte Ltd, the
Chinese venture capital group in which London Asia took a stake in April 2004,
has signed an agreement for the construction of a waste water treatment plant to
service a new town of 600,000 people near Wuhan International Airport, China.

The RMB500 million (#33 million) project will take 18 months to construct, treat
400,000 tonnes of waste water a day, and is projected to generate profits of
over #6.5 million per annum for the 25 year life of the contract in addition to
profits of over #3.5 million on the construction project.

Asia Water Chief Executive Adysson Xue said: "This is a landmark venture for
Asia Water and Capitalink. We will continue to focus on such projects which are
rated top-priority by the Chinese Government."

Commenting on both the above developments, Simon Littlewood, London Asia Chief
Executive, said: "Setting up in the US provides us with an additional route to
realise our investments, either via a listing in the US markets or sale to US
investors, as well as access to follow on and expansion capital for existing
investments."

"Through our investment in Capitalink we have access to the high growth energy
and environment sector in China, a sector requiring substantial amount of
investment to keep up with China's increasing power and water needs as the
economy switches from an agricultural to an industrial focus."

ENQUIRIES:
Simon Littlewood, CEO Tel [phone]
Ben Knowles, Binns & Co Tel [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 Capitalink

Capitalink, incorporated in Singapore, invests in energy, power, environmental
and waste treatment companies across China. The management team has substantial
experience of investing in the sector and subsequently exiting from the
investments via IPO or trade sale.

Capitalink investments include stakes in Chinese water and power groups. This
sector of the Chinese economy is growing strongly as a result of China's growing
economy, which is generating increasing needs for clean water and power. China
is already the world's second largest energy consumer after the USA




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

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