LDC London Asia

RNS Number:4616E
London Asia Capital PLC
26 October 2004


                            London Asia Capital PLC
                        ("London Asia" or the "Company")


                              Launch of China Fund

London Asia, the AIM-listed Greater China focused investment & merchant banking
group, has reached agreement with Global Emerging Markets ("GEM"), the New York
headquartered investment group, for the formation of a US$200 million private
equity fund for China.

The fund will focus on late stage investing in middle market private companies
in the Greater China region, including China, Taiwan, Hong Kong, and S.E Asia.

The fund will take significant stakes in each investment, have Board
representation and be actively involved in the strategic direction, financing
and acquisition strategy.

London Asia and GEM will jointly manage the fund. GEM currently has committed
capital of US$1.8 billion in funds. Investors for the fund will come primarily
through GEM's network of contacts and existing investors, many of which are
seeking an exposure to Chinese Investments. GEM will be responsible for all
technical, legal and compliance operations of the fund.

London Asia will utilize its offices and network in Greater China to identify
opportunities, manage the investments and assist in the exit of portfolio
companies, with particular focus for exits via the UK and Asian markets.

Simon Littlewood, London Asia Chief Executive, said: "Establishing the fund is
in line with our strategy of generating income from a wider range of sources
without significant investment of our own capital. The fund will enable us to
invest in the larger transactions which we have access to, especially in the
power and environmental sectors, but are currently unable to invest in without
substantial dilution to our shareholders."

ENQUIRIES:
Simon Littlewood, CEO               Tel 020 7332 2219

Paul McManus, Binns & Co            Tel 020 7153 1485
                                    Mob: 07980 541 893

Jonathan Wright, Seymour Pierce     Tel 020 7107 8000

About Global Emerging Markets

Global Emerging Markets was founded in 1993 and is a private investment group
specializing in control, minority, and public market investing.  Its activities
are international and span a diverse array of industries and transactional
structures. As of June 30, 2004, GEM had committed capital of $1.8 billion from
institutional investors, and has invested in more than 40 companies worldwide.

GEM's activities are based on a thorough knowledge and understanding of market
conditions.  GEM has offices in New York, London and Paris. Each GEM office is
staffed by local people who understand the business culture and local legal
practices of their countries.

GEM's investment objective is to generate superior long-term gains through
capital appreciation.  Each investment is typically made in exchange for common
or preferred equity.  Through its unique relationships, GEM can also play a
significant role in identifying and structuring additional financing for
acquisitions and other special situations.

About London Asia Capital plc

London Asia is a leading AIM listed investment and merchant banking group
focused on the SME market in Greater China.

London Asia has identified that as a result of the fast growing Chinese economy
and an underdeveloped financial services industry, there is strong demand for
both capital and skilled financial advisory services in China, especially among
small-to-medium sized enterprises.

London Asia operates two principal businesses within Greater China:

   * Investment in profitable businesses with exits via IPO or trade sale;
   * Investment Banking services, mainly corporate finance advisory (fund
     raisings, IPO's and M&A) and fund management

London Asia has a growing list of investments, paid for via a mix of cash and
London Asia shares, focused on distinct industry sectors:

   * Financial Services
   * Media
   * Information technology & communications
   * Infrastructure, energy & natural resources & environment

London Asia has offices and management teams, as well as strong local partners,
across the Greater China region, as well as alliances with a number of Chinese
business parks which gives London Asia access to over 7,000 Chinese businesses.
These provide direct access to investment opportunities, close relationships
with corporate clients, a good level of control over existing investments,
access to local market intelligence as well as providing leverage through a
network of partners. These work in conjunction with our international network in
London, New York, Singapore, Hong Kong and Taiwan.




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

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