LDC London Asia

RNS Number:5316U
London Asia Capital PLC
23 November 2005


Emabrgoed until 07.00 am 23 November 2005

                            LONDON ASIA CAPITAL PLC


           LONDON ASIA CAPITAL WINS MORE CORPORATE FINANCE MANDATES
  Introductions to OFEX for Chinese Companies in Education and Media Sectors

London Asia Capital PLC ("London Asia"), the Greater China focused investment
and merchant banking group, is pleased to announce that China Education Group
Limited and Peach Blossom Media Limited have applied to list on Ofex. London
Asia was appointed as the Corporate Adviser to both entities earlier in the year
for the listing and associated fundraisings. These listings are further evidence
of London Asia's growing prominence as adviser of choice for Chinese businesses
looking to list on UK regulated markets.

Simon Littlewood, Chief Executive of London Asia commented: "We have brought
four China focused businesses to the UK market since May this year, and have
this week been appointed to advise a further two Chinese companies on admission
to UK markets for the first quarter of 2006. Our strategy of moving London
Asia's business model from a pure investment company to one which also earns
corporate finance advisory and recurring fees is clearly taking shape."

China Education Group Limited ("CEG" or "the Group")

CEG is a facilities management company which, through its 100% owned Chinese 
operating business Europasia (Beijing) Educational Technology Co. Ltd, has an
exclusive 25 year contract to manage Shandong International Institute of 
Translation ("SIIT"), a profitable Chinese college.

Founded in 1999 in Ji'nan, China, SIIT is a nationally accredited comprehensive 
college which currently provides three year college courses in seven specific 
areas: Foreign Languages, International Commerce and Trade, Hospitality, 
Tourism, Computer Science, Information Technology and Law. SIIT currently has
8,000 students and expects to double its enrolment to around 15,000 in the 
next two years. The college is currently expanding its facilities and expects
to be able to accommodate 23,000 on completion in 2007.

The Company, which will be valued at around #17 million on admission to OFEX, 
is raising approximately #800,000 net of expenses via an issue of five year 
Convertible Loan Notes, paying a 7% interest rate. London Asia Corporate Finance
is adviser to the fund raising. On a pro-forma basis CEG achieved turnover of 
#3.0 million and profits after tax of #2.4m for the year ended 30 June 2005 up 
67% and 41% respectively compared to the prior year (2004: turnover of #1.8 
million and profit after tax of #1.7 million on a pro forma basis). The listing 
will provide the Company with funds for continued expansion in order to cope 
with increasing numbers and provide the necessary working capital to pursue 
further projects.

The education market in China is seeing considerable growth with the continued 
expansion of China's economy, and an increasing emphasis on developing skills
and qualifications as China seeks to move from being a low cost manufacturing 
base to developing jobs for semi-skilled and skilled workers. The one child 
policy has also encouraged increased spending on education, as parents focus 
their resources on giving their one child the best possible education.

Peach Blossom Media Limited ("PBM" or "the Company")

PBM is a Singapore based original content producer engaged in the creation, 
production, marketing, distribution and the licensing of the rights to animated 
children's programmes for television and 'Direct to Video' markets.

PBM has sales channels in the US, Europe, Japan, Korea and China and will
shortly move into the UK. To date, PBM has received over #3.6 million in funding
from Singapore's Economic Development Board and Media Development Agency, and
has been commissioned to produce shows for Nickelodeon Asia, France, Belgium,
Luxembourg, Middle East, Korea and Hong Kong, and shows for National Geographic,
Discovery, Mediacorp TV and MTV Asia. Profit after tax increased by 40% for the
nine months ended 30 September 2005 from #47,000 to #66,000. Turnover for the
nine months ended 30 September 2005 was #144,000.

The global animation market is expected to generate revenues of US$70 billion in
2005, with China considered to be one of the world's largest markets.

Admission to Ofex will give PBM access to London's capital market to fund rapid
business growth and expansion as a recognised name in the world animation
market. The Group expects to move into the UK shortly and the London listing
will help to raise the Company's profile.

Commenting on the listings, Simon Littlewood, CEO of London Asia added, 
"The appetite for UK investors to add high growth Chinese businesses on 
relatively modest valuations to their portfolios shows no sign of abating. We 
see increasing numbers of Chinese businesses looking to list in London, using 
it as a gateway to develop in Europe. Through our offices in China and the UK 
we are able to source the companies in China, do the due diligence, leading
them through the necessary regulation expected by western investors and 
introduce them to additional funding and business opportunities."

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

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

Notes to Editors

China Education Group Limited

Founded in 1999 in Ji'nan, capital city of Shandong Province in China, SIIT
currently has 8,000 students, with the recent opening of its new campus in
Silver Beach, Weihai City and expects to double its enrolment from existing
levels to around 15,000 in the next two years. Since July 2004, all of SIIT's
programmes have been officially accredited by the Ministry of Education of China
enabling it to grant college diplomas.

Key Aspects


   * profitable, established business;
   * one of the few privately-run colleges in China with all diplomas
     officially accredited by the Education Ministry of China;
   * the management team and college have won several awards;
   * cooperation agreement with Tsinghua University, one of the leading
     universities in China: students who succeed in graduating from SIIT will
     have the chance to attend a one-year full time study program in Tsinghua
     University;
   * attractive and convenient campus locations that support future growth in
     student numbers;
   * highly experienced faculty;
   * practical and diversified curricula, focused on students being able to
     obtain jobs on graduation, a key factor given China's high levels of
     unemployment;
   * strong and innovative management team; and
   * committed to international cooperation, an increasing trend in China's
     education sector.

For additional information, visit www.chinaeducation.com

Peach Blossom Media Limited

With S$11.3m in past and current show funding from Singapore's Economic
Development Board and Media Development Agency, PBM is working on 8 new shows in
co-production with Sunwoo Entertainment, GDH, Artland Studio, Mediacorp TV and
other top US, Australian and Chinese producers.

Through PBM's US, European, Japanese, Korean, Chinese and soon to be UK sales
channels, PBM is well positioned to reap the benefits of growing recurring
revenue from a range of 15 top quality shows to be licensed and re-licensed to
leading broadcasters in these markets, as well as to syndicate other shows. The
Company is also working towards becoming a leading Asian service provider in
flash animation, a new and popular form of digital animation that is
significantly more competitive, in terms of quality versus cost, than
traditional 2D animation for US and Europe-based studios.

In a short space of time, supported by top creative talent and strong
international market and business development, PBM has achieved many firsts for
an Asian producer. These include:

   * Nomination for Best Lifestyle Series and Best Direction for Canada's Leo
     Award 2004;
   * Licensing of two animation series to Nickelodeon Asia, France, Belgium,
     Luxemburg, Middle East, Korea and Hong Kong;
   * Distribution rights to a high definition format series to be broadcasted
     on China primetime TV;
   * Sale of two series show rights and pilots to Disney USA; and
   * Production of commissioned shows for National Geographic, Discovery,
     Mediacorp TV and MTV Asia.

With opportunities for many more new series, show concepts, pilots and demos,
and its strong US, European and Asian sales channels, PBM has carefully
developed its upstream show pipeline and is confident of securing additional
creative commissions and rights, as well as broadcast licence sales for the full
production of several multi-episode animation series.

For additional information, please visit www.peachblossommedia.com




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

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