Chairman's Statement

e-district.net PLC
23 November 2001



23 November 2001

                              e-district.net plc

                             CHAIRMAN'S STATEMENT

Chairman's statement


Since my appointment on 13 November 2001, I have dedicated much of my time to
examining the Company's business and reviewing its legal proceedings against
Steve Laitman, the Company's former Chief Executive.


Review of the business


It is clear that the UK interactive TV services market is growing rapidly and
that this growth has now spread into Europe. With this in mind, I am greatly
encouraged by the progress that the Company has made in establishing its
interactive TV entertainment service in the UK.


I have reviewed the distribution and licensing deals concluded by the Company
since February 2001 of this year along with those currently under negotiation.
Together with the development work undertaken by the Company over that period,
I believe that these activities will clearly establish the company's position
as a leader in its field, benefiting from the substantial revenue streams that
are anticipated for our industry.


I will further strengthen the Company's management team in order to ensure
that this potential is realised.


Action against Mr Laitman


In relation to the Company's legal proceedings against Mr Laitman, I am
anxious to conclude these matters in the best interests of the Company and its
shareholders. I support the Company's view that its case is extremely strong.
However, it is my opinion, confirmed by the Company's lawyers, that given Mr
Laitman's limited remaining assets, the legal costs that would be incurred in
bringing the matter to conclusion could easily exceed the amount of damages
ultimately recoverable.


Accordingly, today the Company and Mr Laitman have agreed Heads of Terms with
a view to settling the dispute with him. It is the intention of the Company
and its Board that, as part of that settlement, and subject to legal advice on
the mechanics of the arrangement, Mr Laitman's entire shareholding in the
Company (approximately 11% of shares in issue) shall be utilised directly for
the benefit of shareholders in the Company as at the time of the suspension of
its shares. This, however, will exclude parties whose shareholdings pre-date
the company's flotation (including Directors) and myself.


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I would like to make it clear that, under the terms of the Heads of Agreement,
if, at any time subsequently, Mr Laitman's disclosed assets are shown to be
materially understated, the Company shall be at liberty to revive its
proceedings.


On the basis outlined above, the Company will drop its legal action against Mr
Laitman. I believe this arrangement to be in the best interests of the Company
and its shareholders. The Company will make a further announcement once the
definitive agreement has been completed.


Auditors


In the light of a potential claim against them, PricewaterhouseCoopers have
resigned as the Company's auditors. I am pleased to announce that on 31
October 2001, the Company appointed Ernst & Young as its new auditors.


Presentation to shareholders


The Company is currently undergoing a re-branding exercise, which will result
in a change of its name early next year. An EGM will be held soon after
completion of this re-branding. At the EGM, the Company's management will
deliver a comprehensive presentation of the company's business and prospects.
The presentation will also be made available on the company's web site and
teleconferencing facilities will be made available for any shareholder who
cannot attend on the day.


Michael Sinclair
Executive Chairman



FOR FURTHER INFORMATION, PLEASE CONTACT:

Gavin Anderson & Company
Graham Prince                                                      07767 664843