LONDON ASIA CAPITAL PLC ('London Asia' or the 'Company')
Record Profits From Chinese Investment

We are delighted to announce that Beijing Success Technology Co Ltd ('Success'),
the Chinese financial software company in which London Asia has a 25% stake, has
reported audited profits after tax for the six months ended 30th June 2003 of
600,000, giving a profit after tax for the twelve months ended 30th June 2003
of over 1.2m. These results show considerable growth in both turnover and
profits as a result of Success's expansion of its sales network into cities
across China.
When the Company took its stake in Success in November 2002, it was granted an
option to increase its stake in Success to 51%, on payment of 2.36m, with the
consideration payable one third in cash and two thirds in London Asia shares at
a price of 10p per share. The original investment in Success totalled 163,000,
of which half was paid in London Asia shares, so that the total investment post
exercise of option will amount to approximately 2.5m, valuing the Success
business at only 4.95m, a multiple of only 3.8 times the profits to June 2003.

The Company has hired Cindy Lam as project manager in it's London office to
assist in the exercise of the Success option and the review of investment
opportunities in China. Ms Lam is originally from Hong Kong where she worked
for J.P Morgan Securities and JP Morgan Fleming Asset Management as Project
Manager, her responsibilities including project managing the implementation of
new IT systems. She has previously worked for EDS/Nedcor, Banque National de
Paris and the Hong Kong Government. Ms Lam has a degree in Computer Science, an
MBA, and speaks English, French, Mandarin and Cantonese.

Said Simon Littlewood, Chief Executive of London Asia: 'Success has
continued to grow revenue and profits, demonstrating that with the right
management team and product, it is possible to tap into the vast potential of
the Chinese market. Success is an example of the profitable, high growth
companies that the Company seeks to work with. We are continuing our due
diligence on a number of other potential investments in China.

Simon Littlewood, chief executive of London Asia argues that many local entrepreneurs are making fortunes as software and high-tech companies double turnover year after year and still fail to meet surging demand. Medium sized private companies in China are maintaining annual profits growth of 30 to 50 percent. London Asia can buy long term stakes at price earnings multiples of 3 to 5.

Littlewood claims there are now 16 million day traders in the People’s Republic.

London Asia's list of investments:

Beijing Success - financial analysis tools
Temima China Investment Banking Group - corporate finance and investment activities within China
Beijing Biao Qi Culture Spreading Ltd - publishing, media and film
Beijing Biao Qi Advertisement Ltd - advertising.
EuropAsia Education plc - UK AIM listed investor in and operator of education businesses in Europe and Asia
Metasource - NASDAQ BB listed
MeanFiddler - UK AIM listed
Prestige Publishing - UK AIM listed
Intelliplus - UK AIM listed
ASAP International - UK OFEX listed
Unlisted Companies
Sportalasia
Puca

Have been piling into PMK in recent months and keeping watch for a way into China; when, because of a small crossholding LDC came up on PMK's news-flow.
LDC looks just the entry I've wanted, so have been scraping together various funds to build a holding here. Looking very promising so far.

Stutter on keyboard!