RNS Number:4269H
Medi@Invest PLC
12 February 2003

EMBARGOED FOR 7.00AM 13 February 2003


                                       Medi@Invest PLC ("Medi@Invest" or "the
                                                     Company")

                                       Proposed Change in Investment Strategy

                                     Proposed Acquisition of Universal Consumer
                                                  Products ("UCP")

                                      and Suspension of trading on AiM pending
                                              publication of Circular


Introduction

The Board of Medi@Invest is pleased to announce a change to its existing
investment strategy and that it has entered into a conditional agreement for the
acquisition of Universal Consumer Products Limited ("UCP"). UCP is a trading
company which specialises in the purchase and resale principally of branded
consumer electronics at discounted prices to reflect the fact that they are
surplus stocks or customer returns. These proposals will result in a fundamental
change in the Company's business and depart substantially from its existing
published investment strategy and, in view of the size of UCP, will constitute a
"Reverse Take-over" under the AiM Rules. Pending the publication of the Circular
comprising an Admission Document under the AIM Rules, dealings in the Company's
shares have been today suspended in accordance with the AIM Rules.

Background to and reasons for the change in investment strategy and the
Acquisition

Since 1998, the Company's strategy has been to take stakes in media and internet
related companies. Through a combination of management problems and rapidly
deteriorating market conditions, two of the three principal investments, KZN
Media Ltd and Creations Holdings Ltd, were unable to continue trading and the
investments had to be written off in March 2001 and April 2002 respectively. At
the present time, the Company's principal assets consist of its investment in
its wholly-owned subsidiary, Andromeda Holdings Limited ("Andromeda"), a book
packaging company, a small stake in Callserve Communications Limited
("Callserve") and its remaining net cash of approximately #2.1 million.

The Directors have been seeking a significant new business to acquire for the
past 18 months with the criteria that such a business should be profitable, cash
generative and able to be purchased on a modest multiple of historic and
projected earnings. Given that the overall objective is to increase Shareholder
value, opportunities in a wide range of business sectors have been examined. It
is the belief of the Directors that the purchase of UCP offers the Company an
opportunity to build a viable and profitable group and thus to restore value in
the shares.

Business of Universal Consumer Products Limited ("UCP")

UCP is a privately owned trading company based in Market Drayton, Shropshire.
Its main business is the purchase and resale of branded consumer electronics
goods (typically TVs, DVD players and hi-fi mini systems) and other selected
durable consumer goods at discounted prices which reflect the fact that they are
surplus stocks or customer returns. UCP purchases these in large quantities
directly from its "buy-side" customers, usually supermarkets, high street
multiple retailers and UK based operations of manufacturers, many of which are
well-known household names. They are typically paid for and collected on the
same day that agreement is reached for their purchase. The goods purchased are
then stored at UCP warehouse at Market Drayton in racks of pallets until their
onward sale to the "sell-side" customers. UCP does not have its own fleet of
delivery trucks but uses independent third party hauliers.

UCP is reliant on buying lines of stock at a substantial discount to retail
prices. The exact level of discount depends on the condition of the goods; for
example, refurbished and 'as new' goods cost more than customer returns which
typically have a proportion that are faulty. UCP does not get involved in
refurbishing or repairing any of the goods purchased but aims as quickly as
possible to sell on to its network of discount retailers which in their turn
sell to the high street customer. Most of these retailers have service
departments and can repair any goods that need minor attention.

The unaudited management accounts of UCP for the 7 months to 30 November 2002
show sales of #4.4 million and profit before tax of #0.61 million. In the year
to 30 April 2002, UCP made sales of #7.2 million and profits before tax of #0.9
million.

Details of the Acquisition Agreement

Under the terms of the Acquisition Agreement, the Company has agreed to pay an
initial purchase consideration of #2.5 million plus a deferred purchase
consideration for the whole of the issued share capital of UCP to be satisfied
in cash. The initial purchase consideration will be satisfied at completion of
the Acquisition. The deferred purchase consideration is payable in the event
that the aggregate net asset value of UCP at completion exceeds #1.05 million
based on a balance sheet to be prepared as at completion of the Acquisition. If
the aggregate net asset value of UCP at completion is less than #1.05 million,
the Vendor is obliged to repay the shortfall to the Company.

The finance for the Acquisition will be provided from a combination of the
Company's existing cash resources and bank facilities.

Future Strategy

On the assumption that the Resolutions are passed at the EGM and that the
Acquisition completes, the Company's principal focus will be on owning and
managing UCP. The strategy of the Directors will be to build and grow sales and
profits upon the solid base that the acquisition of UCP provides. Under the new
investment strategy it is also possible that the Company will invest in other
businesses or enter into transactions of a trading nature where the Directors
believe that there are significant prospects for profits to be made. At the
current time, the Directors are also examining investment opportunities in the
property market as a result of having been approached by a successful private
property trading company.

Further Information

A Circular relating to the proposals for the new group will be sent to
Shareholders as soon as practicable.

13 February 2003

Enquiries

Edward Adams, Medi@Invest PLC 0207 209 1324

Roland Cornish, Beaumont Cornish Limited 0207 628 3396



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