StartIT.com PLC - Re Formation of New Company

RNS Number:3399E
StartIT.com PLC
25 January 2000



Formation of enterpriseAsia.com plc ("enterpriseAsia"), proposed Placing,
proposed Offer for Subscription to StartIT shareholders and Admission to
trading on the Alternative Investment Market ("AIM")

StartIT is pleased to announce the formation of enterpriseAsia, a company
which will be based in Hong Kong.  enterpriseAsia has been formed to invest in
start-up and early stage internet related and IT companies primarily in Asia,
focusing on the growth potential offered by new businesses rather than on the
track record of existing businesses.  Investments will be selected in
accordance with rigorous appraisal criteria.

The Directors of enterpriseAsia, Siu Fai Ng, Benjamin Ng, Peter So and Phillip
Brown (whose details appear below) have considerable experience in
identifying, evaluating and investing in start-ups and early stage businesses.
 Peter So, Siu Fai Ng and Phillip Brown are also directors of StartIT which
invests in technology start-ups in the UK.  Siu Fai Ng, Benjamin Ng and Peter
So have experience in investing in Asia. 

Investing in start-ups and early stage companies carries significant risks.
However, the Directors of enterpriseAsia believe that considerable growth
potential exists in the IT sector in Asia and that the value created from
successful investments will outweigh the costs of those that underperform. In
order to diversify risk, enterpriseAsia will typically invest no more than 10%
of its gross assets in any one holding at the time of investment.

The Directors of enterpriseAsia believe an opportunity exists to provide
capital and support for innovative ideas for young companies in the internet
and IT sectors in Asia which demonstrate the ability to grow into substantial
businesses. It is their belief that many such businesses exist in Asia but
because of the under developed venture capital market many have not received
the financial support they merit.

As part of the proposed offer of shares in enterpriseAsia described below,
enterpriseAsia will apply to have all its ordinary shares in issue quoted on
AIM.  Trading in the enterpriseAsia Ordinary Shares is expected to commence on
AIM on or around 22nd February 2000.

Proposed Placing

English Trust Company Limited ("English Trust"), enterpriseAsia's proposed
Nominated Adviser, and Fiske & Co. Ltd. ("Fiske"), enterpriseAsia's proposed
Nominated Broker, will use their reasonable endeavours to procure placees for
up to 190,600,000 enterpriseAsia Ordinary Shares  at 5p per share to raise
approximately #9.53 million before expenses for enterpriseAsia.  The proposed
Placing and the Offer for Subscription described below are both conditional,
inter alia, on the admission of the Ordinary Shares to trading on AIM.

Offer for Subscription to StartIT Shareholders

In addition it is intended that enterpriseAsia will make an Offer for
Subscription of 9,400,000 enterpriseAsia Ordinary Shares to StartIT
shareholders whose names appear on the StartIT register at the close of
business on 24th January 2000 (the "Record Date"), on the basis of one
enterpriseAsia Ordinary Share for every five existing StartIT ordinary shares
held, at an issue price of 5p per share to raise approximately #470,000 before
expenses.  The Offer for Subscription will be extended to the 5,000,000 new
ordinary shares ("the Placing Shares") which have been placed subject to the
passing of the necessary resolutions at the extraordinary general meeting of
StartIT to be held on 31st January 2000 and admission of the Placing Shares to
trading on AIM on 1st February 2000.  It is intended that the Offer for
Subscription will be fully underwritten on the basis described below.

Following the completion of the proposed Placing and Offer for Subscription,
there will be approximately 200,000,000 enterpriseAsia Ordinary Shares in
issue.

The proposed Placing and Offer for Subscription will raise approximately #10
million before expenses for enterpriseAsia.

It is anticipated that a Prospectus and Application Forms will be despatched
to all StartIT shareholders resident outside North America and Australia on or
about 7th February 2000.

Underwriting Arrangements

It is intended that the Offer for Subscription will be fully underwritten by
StartIT and that the underwriting arrangements will be structured so that
StartIT will take up, at 5p per share, all enterpriseAsia Ordinary Shares not
subscribed for by existing StartIT shareholders under the Offer for
Subscription.

No formal agreements in relation to the underwriting of the Offer for
Subscription have yet been entered into between StartIT and enterpriseAsia.

The Proposed Placing will not be underwritten.

Benefits to StartIT and to StartIT Shareholders

The directors of StartIT believe that StartIT and its shareholders will
benefit from the added value created in enterpriseAsia through both the
opportunity to participate in the Offer for Subscription directly, and from
the shareholding in enterpriseAsia which StartIT obtains as a result of its
underwriting commitment.

Directors of enterpriseAsia

It is proposed that, upon admission, the Directors of enterpriseAsia will be
as follows:

Siu Fai Ng, aged 43, Director. Chairman of Jinhui Holdings Co. Ltd (Hong Kong)
and Jinhui Shipping and Transportation Ltd. (Oslo). He has extensive knowledge
of shipping and trade with China.  From his experience in co-founding his own
companies in 1987, he has developed an interest in start-up businesses both at
the micro and macro level, specialising in strategic planning.  He is a member
of the Hong Kong branch of the Pacific Basin Economic Council.

Benjamin Ng, B.Sc., CGA (Canada), aged 43, Chief Executive Officer.  While
Benjamin Ng's academic background is in mathematics and computing science, his
career has been mainly in marketing and finance.  He has held senior positions
in a number of leading international advertising agencies including Bates and
J. Walter Thompson managing client accounts including fast moving consumer
goods, banking, airlines, telecommunications and IT products and services. 
Most recently he was executive director of DDB Greater China based in Hong
Kong.  In banking and finance, he was director of Bestform Corporate Finance
Limited and has worked for Citibank Canada.  He is currently an Affiliate
Member of the Association For Investment Management And Research.

Peter So, ACMA, ACIB, aged 47, Non-executive Director.  Peter So's career has
focused on banking and finance.  He was a director and head of global
institutional sales and research at Wardley James Capel Limited, a director
and head of project finance at Citicorp International Limited, managing
director of Bestform Far East Limited and deputy managing director of Jinhui
Holdings Company Limited.  He is currently chairman of StartIT.com plc, a
director of Vintage Investments Limited and a non-executive director of Lupus
Capital plc, Jinhui Holdings Company Limited, Jinhui Shipping and
Transportation Limited and China Assets (Holdings) Limited.

Phillip Brown, MA, aged 51, Non-executive Director.  Phillip Brown has had a
career in marketing and business development.  He is ex-divisional director of
Yorkshire Electricity Group plc where he was responsible for start-up
companies and new business ventures, including the formation of Torch Telecom
Limited, a company specialising in delivering voice and data communications in
the corporate sector.  He has experience in a wide range of new business
ventures from fine alloys to cable TV.  He was also the UK representative on
an advisory committee of DGXII (research and development) of the EU.
Currently, Phillip is Chief Executive of StartIT. com plc, a director of
Vintage Investments Limited and non-executive chairman of GLS Software
Limited.

Timetable
The expected timetable is as follows:

Record Date:                                   24th January 2000
Posting of Prospectus                           7th February 2000
Ex Entitlement date:                           31st January 2000
Closing date of the Offer for Subscription:    21st February 2000
Admission to AIM                               22nd February 2000

English Trust, which is regulated by The Securities and Futures Authority
Limited, has approved the issue of this announcement for the purposes of
section 57 of the Financial Services Act 1986.  English Trust is acting
exclusively for StartIT in connection with the issue of this announcement and
will not be responsible to any other person for providing the protections
afforded to customers of English Trust, or for advising any other person in
connection with the Offer for Subscription.  The responsibility of English
Trust, as Nominated Adviser to StartIT, is solely to the London Stock
Exchange.

Further information

John Simpson      English Trust Company Limited       Tel: [phone]

Richard Armstrong Fiske & Co. Limited                 Tel: [phone]

Glenda Boswell    Bosewll City Financial P.R. Limited Tel: [phone]


This press announcement has been released by English Trust Company Limited on
behalf of StartIT.com plc


END

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