LDC London Asia

RNS Number:4043D
London Asia Capital PLC
06 September 2007


6 September 2007


                            LONDON ASIA CAPITAL PLC

                         ("London Asia" or "the Group")


                  Progress Update On Energy & Environment Fund


London Asia Capital PLC (LDC.L) is pleased to announce significant progress on
the fund raising for the Energy & Environment Fund ("E&E Fund"), managed by its
associated company, London Asia Ltd ("LAL"), in which the Group has a 40%
interest.

LAL has seen significant levels of interest in the E&E Fund from Asian based
investors, particularly from Chinese investment groups who are aware of the
opportunities in the sector in China and with London Asia's reputation. To meet
Chinese regulatory requirements, LAL has devised a parallel structure to enable
Chinese investors to invest in the fund, using local currency. The structure
also assists in the E&E Fund meeting the tighter requirements imposed on
non-Chinese funds investing in China.

LAL is currently negotiating with a number of parties in China interested in
investing in the Fund through the structure. LAL has already signed an agreement
with Zhejiang Huachuang Investment Co., Ltd. ("Huachuang"), a Chinese government
approved venture capital enterprise, for it to invest up to RMB250 (#17
million).

Huachuang, based in East China, will assist with the identification of
investment opportunities and due diligence, and any further capital raisings or
flotations within China.

Christoph Loeslein, manager of the Fund, said: "We are confident of attracting
more Chinese investors to the E&E Fund, given the relationships built up over
the years by LAL's team, and the encouragement shown by the Chinese authorities
for Chinese institutions to work with foreign financial firms. As well as cash,
these investors bring additional access to deal flow and, more significantly,
enhance the ability to exit within the Chinese market, where higher exit
multiples are being achieved. We anticipate actively marketing the E&E Fund in
Europe and the Middle East later this year."

Jack Wigglesworth, Chairman of London Asia Capital, said: "The recent turbulence
in global financial markets has highlighted the relative strength of the Asian
financial markets, with Hong Kong and Chinese Stock Markets maintaining highs,
based on the strong cash flows from Chinese investors and relatively limited
range of financial products available to them.

"We are seeing increased levels of interest in our portfolio businesses, and
those of the funds we manage, from international investors who are increasing
their weightings of Asian assets within their portfolios, given the present
greater growth prospects for Asia relative to Western Europe and the US, and a
re-evaluation of the relative risk weightings."

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

John West/
Andrew Dunn        Cecilia Wong                Christoph Loeslein
Tavistock          London Asia Capital plc     Energy & Environment Fund
Communications
Tel: 020 7920 3150 HK Tel: +852 2251 8373      China Tel +86 138 1646 7710
                   cecilia.wong@londonasia.com christoph.loeslein@londonasia.com


About the Energy & Environment Fund

The E&E Fund aims to provide investors with capital growth from investing in a
portfolio of energy and environmental companies, leveraging the technology in
the sector available in the West, with the fast growing Asian markets.

China recognises the need to address its growing energy requirement, and cope
with the ever heavier burden that its economic growth is placing on the
environment and the negative impact this has on its society as a whole and the
long term economic growth, factoring in the estimated 3% cost to GDP of
redressing the damage caused. As environmental legislation is brought in and
enforced, it is creating opportunities for Chinese businesses, both at home and
abroad. In 2005 China is estimated to have had the world's largest total
investment in renewable energy sources (excluding large scale hydropower plants)
with expenditures of US$6 billion and the largest installed capacity of
renewable energy, at 37,000 megawatts (MW). China plans to develop 120,000 MW of
renewable energy by the year 2020, amounting to an estimated 12-16% of China's
estimated total installed energy production capacity in 2020. This would require
iinvestment of approximately #50 billion by 2020.

London Asia management team has been investing in the sector for over 10 years,
and London Asia, through funds it manages, is already a significant investor in
the sector.

For more information on the E&E Fund, visit www.energyandenvironmentfund.com.
For information on some of London Asia's existing investments and clients in the
sector, visit www.asiarenewables.com







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

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