Strategic Alliances

RNS Number:2980Y
London Asia Capital PLC
13 February 2006

                                                                13 February 2006


                            LONDON ASIA CAPITAL PLC


           KEY STRATEGIC ALLIANCES SIGNED WITH FINANCIAL INSTITUTIONS
                             AND GOVERNMENT BODIES


London Asia Capital PLC ("London Asia"), the Greater China focused investment
and merchant banking group, is pleased to announce the formation of several
additional strategic alliances with new partners, which further increase our
infrastructure, access to deal flow and branding within China.


Under the terms of the agreements, London Asia has access to the potential deal
flow and portfolios of the partners. The partners will also utilise their
established networks to introduce and recommend London Asia to a substantial
number of potential investment and acquisition opportunities, which provides
deal flow both for London Asia and for the #50 million Private Equity Fund which
London Asia is currently raising, sponsored by Collins Stewart, the listing of
which on AiM is anticipated in early March.


London Asia will have the opportunity to become exclusive corporate and
financial adviser to the investee companies when they look to raise overseas
capital via IPO, private placement or trade sale.


New strategic cooperation agreements have been signed with two groups in
Zhejiang Province, south of Shanghai. Hangzhou Hi-Tech Venture Capital Co. Ltd,
owned by Hangzhou's City Government, currently has 20 investee companies, with
total current investment of RMB150 million (#10 million). The second agreement,
with Zhejiang Provincial Bureau of Small and Medium Enterprises, gives us access
to the 30,000 SME's that they represent through their 20 branches in the
Province. In order to capitalise on the significant opportunities that these
agreements provide, London Asia has established a new office in Hangzhou, the
capital city of Zhejiang Province, headed by Mr Changguang Chen.


An agreement has also been signed with Heilongjiang Chenergy HIT Hi-Tech Venture
Capital Co. Ltd ("Chenergy"), based in Heilongjiang, the most northern Chinese
province. Chenergy has existing investments in over twenty businesses, and is
looking to London Asia to assist it in finding foreign partners and investors,
and realising its investments through trade sale or IPO.


London Asia has also signed a strategic alliance with the Ministry of
Information Industry Sanda Centre (MIISC), the governmental agency responsible
for coordinating, promoting, developing and internationalising China's
information and communication industry. London Asia will look to leverage
MIISC's already established partnerships with leading industry brands such as
Microsoft, Panasonic, NEC, Motorola, and Matsushita Electric.


Simon Littlewood, Chief Executive of London Asia said: "These new strategic
alliances build on our existing extensive infrastructure in China, extending our
geographical reach and ability both to access investment opportunities for
ourselves and the new Private Equity Fund we are launching, but also providing
additional corporate finance fee income from advising Chinese businesses seeking
to raise capital or find partners overseas."


"Our new office in Hangzhou is ideally located in one of the most dynamic
regions of China. There are a number of opportunities in the energy and
environment sector that we are currently exploring in Heilongjiang, including
wind energy and biomass projects."


"Many of the investments that we have already identified and performed due
diligence on for the Fund are in the rapidly expanding IT and communications
sectors. Our alliance with MIISC keeps us at the forefront of development in
these sectors."


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


Simon Littlewood                          John West/Matt Ridsdale
London Asia                               Tavistock Communications
Tel: Tel [phone]                    Tel: [phone]


NOTES TO EDITORS:


About Zhejiang Province

Zhejiang lies along the eastern coast line of China and is one of the most
developed provinces in the nation, believed to have one of the highest
proportion of foreign investors and private enterprises in China. Zhejiang has a
population of 47 million and its GDP per capita in 2004 was US$3,000, around
twice the national average and in the top 3 in China. Zhejiang is famous for its
booming SME sector and houses over 330,000 private SMEs, which collectively
achieve sales revenue of over RMB 990 billion. The SMEs in Zhejiang rank No. 1
in China in terms of sales turnover, exporting volume and numbers of e
nterprises.


Zhejiang Provincial Small & Medium-sized Enterprises Bureau is the Provincial
government agency specializing in administrating and serving small & medium
sized companies and has established regular working relationships with over
30,000 SMEs in Zhejiang, who are expecting the Bureau to bring foreign capital
and management expertise to facilitate their sustainable growth.



About Hangzhou City

Hangzhou was recently voted by Forbes magazine as the "best place in China to do
business". As one of China's six ancient capitals, Hangzhou possesses a proud
and distinguished history: it was the capital of the Southern Song Dynasty
(1127-1279AD), and Marco Polo described Hangzhou as a "paradise on earth".


The southern terminus of China's Grand Canal, Hangzhou is the capital of
Zhejiang province, which lies 180 kilometers to the southwest of Shanghai. It
had a population of 6.29 million as at the end of 2001.


From 1995 to 2002, its economy grew steadily at an average annual rate of 12.1%.
In 2002, Hangzhou's GDP reached RMB 178 billion, and per capita GDP reached RMB
28,150, the highest among all cities in Zhejiang province.


Hangzhou is the largest industrial center in Zhejiang province, with a total of
65,000 industrial enterprises. Its industrial output rose by 25% to RMB 240
billion in 2002. The major industries in Hangzhou are textiles, electronic &
telecommunications, machinery and beverages. New industries including high-tech
industry, chemical processing and medicine industry are also developing at a
fast pace.


Hangzhou has long established itself as the home of silk production. It has
approximately 300 silk production enterprises, leading the country in terms of
the number of factories


World famous multinational corporations that have significant investment in
Hangzhou include GE Energy, General Motors, Merck, Motorola, Bosch, Siemens,
Liquid-Air, Panasonic and Toshiba. Foreign-invested enterprises play an
important role in Hangzhou's economy, and in 2002 accounted for 26% of
Hangzhou's gross industrial output and 31% of exports.



About Hangzhou Hi-Tech Venture Capital Investment Co.,Ltd

Hangzhou Hi-Tech Venture Capital Investment Co., Ltd is 100% owned by Hangzhou
Municipal Bureau of Science & Technology, a government agency specializing in
managing and serving small to medium high tech enterprises. The company has
registered capital of RMB 1.5 billion and has invested in over 20 companies in
IT, pharmaceutical, new materials, environment protection. The company is keen
to cooperate with foreign investors to co-invest high quality high-tech
companies.



About Heilongjiang Province

Heilongjiang lies at the north-eastern corner of China, neighbouring Russia.
Heilongjiang is one of most important basses in China for heavy industrial
manufacturing and agricultural products. Heilongjiang has a population of 38
million and its GDP per capital was US$1,700 in 2004.


Heilongjiang Chenergy-HIT Hi-tech Venture Capital Co., Ltd is a government
sponsored investment company, which provides financing guidance and services to
high-tech enterprises. The company has registered capital of RMB 630 million and
has established a widespread network of partners across the nation. The company
has built a strong portfolio with over 20 investees in new energy, new
materials, IT, bio-pharmaceutical and environment protection sectors and is
actively looking for foreign partners to co-manage and assist in the development
and exit of its portfolio.



About The Ministry of Information Industry

The Ministry of Information Industry oversees and coordinates the development of
the IT industry and related sectors in China. Its main task includes designing
and formulating a national strategy and development plan, as well as industry
policies related to the sector, reviewing and approving major infrastructure
investment projects in the IT industry, and monitoring and supervising the
operation and performances of the major state owned IT businesses. For
additional information, please visit www.mii.gov.cn






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

END
SALGUUQAPUPQURW