We are delighted to announce that we have concluded on the 19 January 2005 the sale of Techtran Group Limited, which is the second portfolio investment we have sold from the Axiomlab Group. Techtran Group Limited (‘Techtran’) was sold to IP2IPO Plc (‘IP2IPO). IP2IPO had previously invested in Techtran Group.  The consideration proceeds due to Axiomlab Group amounts to £12.86m, of which £3.2m will be received in cash and the balance in the form of 1,483,217 IP2IPO shares which are listed on AIM.   The Company is required to retain the IP2IPO shares for 12 months, during which time the IP2IPO shares could rise or fall in value.

In line with our previously stated intention to return surplus cash to shareholders, and following a review of the Group’s business and limited cash requirements over the next two years, the Board has resolved to return approximately £3.9 million to holders of Existing Portfolio Shares and Ordinary Shares. This is in addition to the dividend declared earlier this month. We have been advised that a buyback of shares represents a tax efficient means of returning surplus cash to shareholders. The procedure allows each Qualifying Shareholder who chooses to participate to offer to sell to the Company a proportion of his shares. There is then an Extraordinary General Meeting where a special resolution is required to give the Company the ability to complete the purchase. The share buyback proceeds are then despatched to shareholders, followed by certificates for the balance of their shareholdings.