Europasia - penny stock huge growth potential

Announcement earlier today made by China Education - add the value of the loan notes to their holding in the ordinary shares, & you can see why London Asia buying in the market.

23 December 2005

CHINA EDUCATION GROUP
LOAN NOTES START TRADING ON OFEX

The Directors of China Education Group Limited ("CEG" or "the Company") are
pleased to announce that the Company's Five Year 7% Convertible Loan Notes
("the Loan Notes") have commenced trading on Ofex today under the sector
classification Support Services. The total number of Loan Notes to be admitted
to Ofex is 822,355. The opening price is expected to be GBP1 per Loan Note.

The Loan Notes pay a 7% interest rate per annum and are convertible into
2,549,938 ordinary shares at a conversion price of 32.25p per share.

Europasia Education plc ("EPE"), the AIM listed education group which is a
13.8% shareholder in CEG and whose directors, Simon Littlewood and Victor Ng,
are on the Board of CEG, took up GBP387,735 of the Loan Notes.

Mr Sun, Chief Executive of China Education, said "We are delighted by the
success of the offering, the proceeds from which will be used to fund the
continued expansion of the business to increase profits going forward."

Simon Littlewood, EPE director, said "EPE's recent fund raising has enabled it
to increase its stake in CEG as part of the Ofex listing both via acquisition
of additional ordinary shares and Loan Notes. The Loan Notes will give us a
regular income stream as well as exposure to capital growth as we work with
CEG on its expansion both within China and internationally."