RNS Number:1178Z
City Of London Group PLC
25 July 2002


RELEASED ON BEHALF OF:

CITY OF LONDON GROUP PLC

25 July, 2002

               NEW CHIEF EXECUTIVE APPOINTED AT RCHIVE-IT.COM AS

                   COMPANY PREPARES SALES AND MARKETING DRIVE


  • Chairmanship Taken By COLG's VC Board Member
  • Marketing Result From ECeurope.com Expected September
  • Results From PR Side Little Changed In First Quarter
  • Quoted Portfolio At 60p Per Share Plus Investee Companies 47p Per Share

________________________________________________________________

Mr. Dean Davies, 45, has been appointed chief executive at Rchive-it.com, a
Microsoft partner and developer of MailStore e-mail archiving which provides
legal evidence, addresses regulatory issues, and an audit trail for commercial
transactions.  COLG has an effective 49.9p.c. interest in the company on which
it will now concentrate its main funding.



The move, reported at COLG's annual meeting today, co-incides with businessman
and venture capitalist specialist Simon Philips, the newest appointment to the
COLG Board, becoming chairman of Rchive-it.  Mr. Peter Winder, one of the two
founders, becomes deputy chairman.



Following the successful development and launch of MailStore and a second
product, Biz@rchive, for Microsoft's BizTalk's commercial transactions, the
company is strengthening its management team preceding a sales and marketing
drive this autumn.



Rchive-it sees a major marketing opportunity with the overwhelming present day
need for corporate governance in the control and management of legally
admissible email.   Current predictions are the 9.7bn e-mails sent daily will
rise to 35bn e-mails in 2005 (Source: Computer Weekly).  Rchive-it believes
companies without a system with archiving policies, leaves the possibility of
email files becoming a "Pandora's Box".



Mr. Davies joins Rchive-it from Peapod UK Limited, one of Europe's leading
security distributors, where he was European business director for professional,
technical and managed services.   He was responsible for re-orienting the
Professional Services arm from being a pre-sales support unit to a chargeable
service unit, engaging clients in a solutions rather than a product basis.   He
has been, for the last 15 years, successfully bringing software products to
market in database, risk management and accounts technologies.



He was the founder of a software development company that he sold to Lotus
Development Corporation in 1993.   His earlier years were spent in marketing
with Colgate Palmolive, Max Factor and Dun and Bradstreet.



"I came across from Peapod with first-hand knowledge of the Rchive-it product
and in order to see the full potential exploited of its secure email system
which I believe to be a world leader", said Mr. Davies.     The aim, even in
difficult markets, is to make Rchive-it financially self-supporting within a
year.



In the meantime, COLG's annual meeting was told, the two other investee
companies ECeurope.com (effectively 49.9p.c. held), an internet Trade Bulletin
Board for SMEs, and DBC (40p.c.), which provides management software to run
digital networks in supermarkets, bars, and on poster boards, are being put
under constant review.   Marketing results from ECeurope's current sales drive
to convert its 125,000 non-paying members to paying members - it includes a one
month's free trial - will be known by the end of September.  Following load
testing of the platform, marketing has resumed to a database of 3m SMEs at a
rate 10 times higher than previously





COLG chairman John Greenhalgh said:  "Both ECeurope and DBC are good ideas and
provide useful world services.    We have paid the cost of development and would
like to retain both for better times as long as running costs are extremely low.
Companies that can hold on to their big dreams when most others crumble
could do well in times ahead when paying for a useful service is the norm rather
than the exception.    Rest assured we will be realistic about decisions when
the main evidence from sales campaigns is before us."



The  group's quoted share portfolio at end of June this year stood at 60p per
share (71p per share end March) after borrowings.    Additionally the company
had investments and loans of approximately 47p per share in the three investee
companies.



Mr. Greenhalgh said COLG's PR operation for the first quarter showed results
similar to the same period last year although new business won was offset by
fall-out and the market fragile.



"All will appreciate these are tricky times for most businesses.     They also
present opportunities for a small, fully listed company.   As well as being
approached by several management buy-in teams in the last six months we,
ourselves, are also on the lookout for acquisition opportunities".



Further info:     John Greenhalgh, Chairman       Peter Doye, Deputy Chairman
                  City of London Group Plc                020 7628 5518
                  (Mobile: 070 500 39678)



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