Update on Investments

Brainspark PLC
17 May 2006


For immediate release                                                17 May 2006

                                  Brainspark plc
                          ('Brainspark' or the 'Company')

                              Update on Investments

Brainspark announced today that it is investing in Mediapolis SpA.
('Mediapolis') an Italian real estate development company which owns the land
and the planning permission for a major development project in Piemonte, between
Turin and Milan.  The four main components of the development are:

  • A major theme park, comparable in size to some of Europe's largest theme
    parks

  • A specialized commercial centre of 14,825 acres (or 60,000 square
    meters)

  • Two hotels

  • One gas fired electricity generation plant

Francesco Gardin, Brainspark chairman commented: 'This is the second Brainspark
investment in recent months. It is a second stage round of funding in the
largest planned amusement park in Italy. Although it is substantially different
from the typical Brainspark technology investments it is part of a our strategy
announced at the time of the Polarizonics Technology investment, namely to
create an international network of relationships with strategic partners. This
investment is made in conjunction with a number of local investors and is a
precursor to a euro 196,000,000 (£135,640,000) fund raising for the development
of the theme park, hotels and shopping mall. Funds may also be raised through a
listing on a European stock exchange.'

Brainspark will invest $49,400 (£34,500) in ordinary Mediapolis Stock
representing a holding of 38,000 shares or approximately 0.47% of the enlarged
issued share capital of the company. The price is based on a pre-investment
valuation of euro 9,000,000 (£6,500,000) This investment is part of a fully
subscribed round of funding  raising euro 1,500,000 (£1,050,000) for Mediapolis
in total. Investors in this round include local entrepreneurs.

Prior to the current investment round the company is owned by Mediapolis
Investment Luxembourg (81%), Olivetti Multiservices S.p.a. (Telecom Italia
Group) (10%) and (9%) by the private Dutch holding company Breakline SV.


Alfredo Villa, Director of Brainspark, is also a Director and shareholder of
Mediapolis Investment Luxembourg.


Contact:      Francesco Gardin, Brainspark PLC on 
              [phone] or 00 39 335 296573

              Roland Cornish, Beaumont Cornish Limited on 
              [phone].

Press contact Alla Lapidus, Moonlight Media Ltd 
              [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange