Proposed subsidiary flotation

On-Line PLC
10 July 2001

ON-LINE PLC



Prospective AIM flotation of subsidiary



Akaei plc ('Akaei'), a subsidiary of On-line PLC, has submitted a preliminary
notice to the Stock Exchange regarding its potential flotation on AIM.  Such a
preliminary notice is submitted at least 10 days prior to the date on which
admission to AIM is sought.  It is emphasised that the submission of this
notice does not guarantee the AIM flotation of Akaei will take place.



The text of the preliminary notice is reproduced below:




ANNOUNCEMENT TO BE MADE BY PROSPECTIVE AIM COMPANY AT LEAST 10 BUSINESS DAYS
PRIOR TO ADMISSION

COMPANY NAME: AKAEI PLC

COUNTRY OF INCORPORATION: ENGLAND AND WALES

COMPANY BUSINESS: Entertainment Software Company, developing, licensing,
publishing and distributing games for PC and other platforms

DETAILS OF SECURITIES TO BE ADMITTED: Up to 6 million ordinary shares of 0.5p
at a placing price of 10p plus 67 million ordinary shares of 0.5p already in
issue

CAPITAL TO BE RAISED ON ADMISSION: Up to £600,000

FULL NAMES AND FUNCTIONS OF DIRECTORS, INCLUDING SHADOW AND PROPOSED DIRECTORS:



KAZUTOSHI MIYAKE - Non-executive Chairman

ROD LEONARD COBAIN - Managing Director

MICHAEL JOHN HODGES - Director

DAVID JOHN CRUMP - Finance Director

CLEMENT HADRIAN CHAMBERS - Director

ANNA JANE DINGLEY - Non-executive Director

PERSON(S) INTERESTED IN 3% OR MORE OF THE ISSUER'S CAPITAL, EXPRESSED AS A
PERCENTAGE OF THE ISSUED SHARE CAPITAL:


                                        Pre Placing     Proposed Post Placing
On-line PLC                                89.6%                82.2%
Hoodless Brennan & Partners Plc             5.2%                7.3%
Everett Financial Management Limited        5.2%                7.3%


NAMES OF ALL PERSONS TO BE DISCLOSED IN ACCORDANCE WITH Schedule 2 part (g) of
the AIM RULES



The following were allotted Ordinary Shares at 2p per share on 9 July 2001


                                        Number of ordinary shares of 0.5p each
Hoodless Brennan & Partners Plc                       3,500,000
Everett Financial Management Limited                  3,500,000


NAME AND ADDRESS OF NOMINATED ADVISER:



Grant Thornton

Grant Thornton House

Melton Street

Euston Square

LONDON NW1 2EP

NAME AND ADDRESS OF BROKER:



Hoodless Brennan & Partners Plc

40 Marsh Wall

Docklands

LONDON E14 9TP

LOCATION OF ADDRESS AT WHICH ADMISSION DOCUMENT IS AVAILABLE AT TIME OF
ADMISSION WHICH ALONE CONTAINS FULL DETAILS OF THE COMPANY AND OF ITS
SECURITIES:



Grant Thornton

Grant Thornton House

Melton Street

Euston Square

LONDON NW1 3EP

DATE OF NOTIFICATION: 9 July 2001

NEW / UPDATE: NEW