LDC London Asia

RNS Number:7580S
London Asia Capital PLC
17 October 2005


                            LONDON ASIA CAPITAL PLC
                        ("London Asia" or "the Company")
                                        
  Second Successful Ofex Float and Acquisition of London Asia Corporate Finance

Second Successful Ofex Float

London Asia (LDC.L), the Greater China focused investment and merchant banking
group, is pleased to announce that its investee Company, China Eastsea Business
Software Ltd ("Eastsea"), has today successfully listed on Ofex.

Eastsea is a leading IT outsourcing service provider for the petrochemical/
petroleum industry in China. Its core product enhances business processes,
focusing on the oil, power and government sectors in China.

Eastsea started trading with a market capitalisation of #8m. London Asia
Corporate Finance Ltd ("LACF") was corporate adviser to the Company for the
flotation and continues to act as adviser to the company. London Asia holds a
12.6% stake in Eastsea, plus options for a further 7%.

Eric Zha, Chief Executive of Eastsea, said: "Our listing on Ofex provides us
with access to capital from international investors to continue to expand the
business, as demonstrated by the recent US$1 million investment in us by leading
Taiwanese venture capitalist Hotung Group."

Simon Littlewood, Chief Executive, London Asia Capital said: "This is our second
successful listing of portfolio companies on Ofex this year, with a further two
listings planned before the end of the year. We look forward to continuing to
work with Eastsea in taking advantage of the huge opportunities in their sector
both within China and internationally."


Acquisition of London Asia Corporate Finance Ltd

Following the approval of shareholders at the Annual General Meeting earlier
this year, and the approval of the Financial Services Authority to the transfer
of control, the Company has today acquired 100% of LACF for a cash payment of
#200,000, and the issue of 1.4 million London Asia ordinary 5p shares at 13p per
share (the closing mid market price on 14th October).

LACF was 91% owned by Simon Littlewood (London Asia Chief Executive) and 9% by
Temima Group plc, where Simon Littlewood and Victor Ng (London Asia executive
director) are directors and shareholders.

On 15 October LACF exercised 26,334 warrants, convertible into 526,680 London
Asia ordinary shares at 5p per share, resulting in cash proceeds to the Company
of #26,334. On 15 October LACF sold 1,728,360 London Asia ordinary shares for a
total consideration of #1, as a result of which LACF no longer has a holding of
ordinary shares or warrants in London Asia.

Application will be made for the 1,926,680 shares issued to be admitted to
trading on AIM, with admission expected on 21 October 2005.

Jack Wigglesworth, London Asia Chairman, said: "In order to list companies on
Ofex and provide advisory services to Chinese and other companies within the UK,
it is important that we have the necessary regulatory approvals, which the
acquisition of LACF provides us with. LACF was the corporate adviser for the
Ofex listing of both Betex Group plc and China Eastsea Business Software Ltd.
LACF will generate recurring fee income for the Company from corporate adviser
fees where we continue to act as adviser post the Ofex listing, as well as
one-off corporate finance fees on fund raisings and listings, ensuring a steady
UK cash flow for the group to offset our UK running costs."

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

John West/Matt Ridsdale                  Simon Littlewood
Tavistock Communications                 London Asia Capital plc
Tel: 020 7920 3150                       Tel 020 7248 7578

About Eastsea

Formed in 2004 from a buyout of the IT department of Sinopec Zhenhai Oil
Refining and Chemical Company Limited, members of the Group have undertaken a
total of more than 60 Business Process Outsourcing ("BPO") projects. BPO is the
act of giving a third-party the responsibility of running what would otherwise
be a company's internal system or service, and is becoming increasingly common
as technology and processes become more complex and businesses look to cut
costs.

Clients of the Group include large oil firms such as Sinopec Zhenhai, BP
(Ningbo), Yang Hong Petrochemical, Shanghai Petrochemical, and various
subsidiaries of Sinopec, Clients of the group in the power industry include
Hubei Power and Kaidi Power. Government clients include the Ministry of Foreign
Affairs and the State Development Bank. The Group's ERP project for Sinopec
Zhenhai won a prestigious National award for "Best IT Application".

In September 2005 Huitung Investment Ltd, part of Hotung Group, the Taiwanese
venture capital firm, invested US$1 million (#570,000) in the Group for an 8%
stake.

For additional information, visit www.chinaeastsea.com



About London Asia Corporate Finance Ltd

London Asia Corporate Finance Ltd ("LACF") has been regulated by the UK's
Financial Services Authority (and its predecessors) since December 2001,
enabling it advise companies seeking to raise finance, carry out mergers and
acquisitions and restructuring and refinancings. LACF is also an authorised
Corporate Adviser for OFEX, able to advise companies seeking to float on OFEX
and act as adviser to those already listed.

LACF has to date acted as corporate adviser on the listings of Betex Group plc
and China Eastsea Business Software Ltd on Ofex.





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

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