Issue of Equity

Auxinet PLC
5 July 2001

auxinet plc ('auxinet' or 'the Group')


auxinet, the UK's leading processor of e-commerce payment transactions through
its DataCash business, announces that Collins Stewart Limited, auxinet's
brokers, have agreed to place 5,302,500 new ordinary shares at 40p each to
raise £2.0 million, net of expenses. The net proceeds will be used to fund the
Group's continued development whilst DataCash grows its profitability and
whilst Platima customers are signed up and converted to revenue generative
business.


David Bailey and Gavin Breeze, two of auxinet's directors, have agreed to
subscribe for 100,000 and 87,500 shares in the placing respectively.


Application has been made for these shares to be admitted to trading on the
Alternative Investment Market of the London Stock Exchange, with admission
expected to take place on 11 July 2001.


The Group is pleased to announce that, ahead of expectations, DataCash has
been trading profitably (before central Group overheads) since May 2001 and,
as already indicated, anticipates growing profitability in the second half.
DataCash has processed over 3.6 million transactions in the first half of 2001
to date, compared to 1.6 million transactions in the first half of 2000, and
2.6 million transactions in the second half of 2000. Transaction volumes have
grown by approximately 9 per cent per month during the past year.
Additionally, contracts are in detailed negotiation with a number of very
sizeable potential customers that, if concluded, would add substantially to
the rate of growth in transaction revenues. Accordingly, the Board remain
confident for the future of DataCash and expect it to increase its
profitability as a result of the high margin incremental revenues now being
experienced.


Platima, the B2B payments solution developed by auxinet, is believed to be
unique in the market place as the only operational, fully functional, global
payments solution designed to automate payments efficiently between businesses
whilst minimising back-office processing. Platima's first customer, mondus, is
due to launch the Platima service in the third quarter of 2001. A further
agreement has now been signed with a US reseller acting as a marketing
umbrella organisation for businesses operating in a proven, high volume
transaction market sector. Further details are expected to be announced soon,
although it is currently subject to confidentiality agreements. A number of
other potential customers are in detailed negotiations with Platima, with
particular interest being shown by businesses looking to automate payments in
their e-procurement activities. The Board of auxinet is excited by the
numerous prospects for Platima and are optimistic it will achieve
profitability in 2002.


The recruitment business has continued to suffer from a sharp fall in hiring
activity in the technology industry, and the anticipated profitability of this
division has therefore failed to materialise. Further cost-reduction measures
have been necessary, and the business has now been contained.


The performance of the recruitment division and the continuing cost of the
Platima development will result in an overall auxinet Group loss for the first
half of approximately £1.7 million. The Board has decided to raise further
funding at this time as the recruitment division has been unable to generate
sufficient cash-flow to fund the continued development of the payments'
businesses. The Board believes the funds raised will enable auxinet to exploit
the many significant opportunities presenting themselves to DataCash and
Platima and is confident that the Group, as a whole, will move towards
profitability in the second half of this year providing a base for solid,
rapidly growing, cash generative profitability in 2002.


A further update on developments will be provided with the interim figures to
be published in early September.


The press announcement has been approved for the purposes of Section 57 of The
Financial Services Act 1986 by Collins Stewart Limited which is authorised by
The Securities and Futures Authority Limited.


Enquiries:

John Coyle, Clerkenwell Communications                     Tel: [phone]