Statement re Suspension of Trading

Chandra PLC
17 February 2000



                           CHANDRA PLC ('Chandra')                            
                                  
                                  
Further  to  the  announcement made on 18th January,  2000  and  the
continued  rise in the share price, Chandra announces  that  it  has
entered into heads of agreement, which are non legally binding, save
for  arrangements  regarding costs and public  announcements,  which
would constitute a reverse takeover under the AIM rules.

Work is continuing on legally binding contracts for the acquisition,
which  is  intended  to be financed entirely  by  an  issue  of  new
ordinary  shares in Chandra, together with associated documentation.
If   successfully  completed,  the  acquisition  is  likely  to   be
accompanied  by  a fund raising, at a substantial  discount  to  the
current market price, to provide additional working capital.

A  further announcement will be made as soon as practicable.  In the
meantime,  the directors of Chandra have requested that dealings  in
Chandra's  shares  on AIM be suspended, pending the  publication  of
full details of the transaction.