RNS Number:9845T
Real Affinity PLC
08 January 2004



8 January 2003
Real Affinity plc ("Real Affinity" or "the Company")

             REAL AFFINITY PLC TO ACQUIRE SPORTS MARKETING COMPANY
                             AND RAISE #1.3 MILLION

Real Affinity plc ("Real Affinity" or "the Company"), the AIM listed direct
marketing and communication specialist, announces that it has conditionally
agreed to acquire the entire issued share capital of Navigator: The Sports
Business Limited ("Navigator"), a sports marketing company, for initial
consideration of #590,000 to be satisfied by the issue of 27,699,530 new
ordinary shares. In addition, deferred consideration of up to a maximum of #4.3
million, also to be satisfied by the issue of new ordinary shares, may be
payable in two tranches in 2005 and 2006, depending on the performance of
Navigator.

Navigator, established in 2000, provides sports business solutions for major
brand clients requiring defined business returns from sports marketing. Clients
include Puma, Umbro, Sage, Fox Kids TV Europe and institutions ranging from the
English Schools FA to the Institute of Thai Culture. It is currently tendering
for projects in a variety of sports ranging from sailing and motorsport to golf
and athletics. Revenues are derived from consultancy and project fees from use
by brand clients of Navigator's own products and services and sponsorship
commissions. Over the three years ended 31 March 2003 Navigator has increased
turnover from #90,000 to #410,000 and further to #520,000 in the six months
ended 30 September 2003.

The Company also announces that it has undertaken a placing of 104,000,000 new
ordinary shares at 1.25p per share to raise #1.3m (before expenses). These funds
will be used to raise the profile of Navigator, for the appointment of
additional staff, investment in IT equipment and to provide additional working
capital for the enlarged Real Affinity group. The placing has been fully
underwritten by Seymour Pierce.

The acquisition of Navigator constitutes a reverse takeover under the AIM Rules
and as such, requires the approval of Real Affinity's shareholders. The placing
is also conditional on shareholder approval, and this is to be sought at an EGM
of the Company to be held on 2 February 2004. An admission document containing
full details of the placing and acquisition will today be sent to shareholders.

Real Affinity, which floated on AIM in March 2001, has been seeking to build an
entrepreneurial group of companies that can advise clients on how best to build
successful customer relationships and to add value to their brands. The Board
believes Navigator, which has offices in London and Leeds, will be an excellent
strategic fit with its existing operations, Ladders, a full service agency, and
Ecomextra, which provides advice and creative web-based solutions for its
clients.

Mark Richardson, Chief Executive of Real Affinity, said: "We have invested a lot
of time in identifying an acquisition which will bring real benefits to the Real
Affinity group. Navigator is in an exciting and fast growing field of marketing
which we believe offers real scope for growth. It has a strong reputation, an
international network of affiliates, experienced personnel and some very
innovative ideas in using sport as an integral brand and consumer marketing
tool."

                                 ** E N D S **

Issued on behalf of Real Affinity plc by St Brides Media & Finance Ltd, 46
Bedford Row, London WC1R 4LR.

Press Contacts:
Mark Richardson                   CEO, Real Affinity plc      Tel: 01274 421 606
Hugo de Salis/Cliff Feltham,      St.Brides Media             Tel: 020 7242 4477
Louise Carpenter/Jonathan Wright, Seymour Pierce Limited      Tel: 020 7107 8000


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