High Court Approval

e-district.net PLC
11 February 2002


                       e-district.net plc ('e-district')


e-district announces that the settlement of its proceedings against Steven
Laitman has been approved by the High Court.

On the basis of advice received and warranties given by Steven Laitman as to the
assets available to him, the board is of the view that even a successful outcome
to the proceedings would not yield any net financial benefit to e-district. If
the warranties given by Steven Laitman prove to be false, then e-district is
free to recommence these proceedings.

As part of this agreement, Steven Laitman has agreed to distribute the 8,474,100
shares in e-district (representing approximately 11.0 per cent. of the issued
share capital) held in his name to certain shareholders. Broadly these are
shareholders, other than management and major shareholders immediately preceding
flotation, on the register as at 19 February 2001 who validly apply for such
shares ('eligible shareholders').

A letter will be despatched in due course to relevant shareholders providing
details of this distribution.

In addition, shareholders who bought shares in e-district shortly before 19
February 2001 but who were not on the register on such date will be eligible to
apply for this distribution in respect of the shares bought, to the exclusion of
the seller of such shares. This will apply to persons who satisfy e-district
that they would have had a valid market claim in respect of such shares bought
had the shares on 19 February 2001 been marked ex-entitlement to this
distribution and the term 'eligible shareholders' will be construed accordingly.
Persons who believe that they would have had a valid market claim on this basis
should notify e-district as soon as possible in writing, providing evidence of
such purchase of shares and the registered name in which their shareholding was
subsequently registered.

The 8,474,100 shares will be distributed to eligible accepting shareholders pro
rata to their shareholdings as at 19 February 2001.

e-district's balance sheet as at 30 June 2001 recorded £980,615 as exceptional
receipts. This sum represented monies received by the company's bankers and
recorded in the company's records as being from sales agencies when in fact they
were from bank accounts linked to Steven Laitman. As part of the agreement with
Steven Laitman, these sums are deemed to be the property of the company.
Accordingly, this amount will be treated as exceptional income in the company's
profit and loss account.


Enquiries:

e- district.net plc

Frank Lewis 020 8515 2800



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