Acquisition & Trading Update

Interregnum PLC
27 January 2005


27 January 2005

                                INTERREGNUM PLC

                     Acquisition of AVM and Trading Update

Interregnum plc ('Interregnum'), the technology merchant bank, announces the
acquisition of Audio Visual Machines ('AVM') and provides a trading update for
the first half of FY2004-5 (the six months ended 31 December 2004), which
includes a more than 3-fold increase in revenues. Full interim results for this
period are planned to be released at the end of February 2005.

Acquisition of AVM

Interregnum has today acquired 82.35% of the equity of AVM for a consideration
of £500,000, comprising £200,000 in cash to be funded from existing resources
and £300,000 in loan notes. The loan notes carry interest at 6% per annum and
are redeemable in two tranches, 12 months and 18 months from the date of their
issue.

AVM, established in 1990, is an audio visual solutions provider. The company
designs, supplies, programs and supports complex audio visual systems ranging
from boardroom presentation solutions to IP-based video conferencing networks.
AVM's clients include BP, BNP Paribas, EDS, Glaxo SmithKline and PwC.

For the 12 months to 31 March 2004, AVM generated revenues of £2.3m and profit
before tax of £29,000. Management accounts for the nine months to 31 December
2004 indicate that AVM has traded profitably during this period.

This transaction, which is expected to be earnings enhancing for Interregnum
during the second half of FY2004-5, underlines Interregnum's strategy of taking
principal investment positions.

Trading Update

Interregnum's consolidated revenues for the six months ended 31 December 2004
showed an increase of more than 370% to £3.3m (1H 2003-4: £0.7m). This reflects
increased revenues from the Interregnum advisory business and from its
subsidiary Yospace, together with the full consolidation of the revenues of
Cellular Design Services (CDS) which was acquired in February 2004.

Consolidated operating losses were reduced to £719,000 (1H 2003-4: loss of
£799,000).

Operating cash flow for period improved to -£614,000 (1H 2003-4: -£928,000), and
the cash balance at 31 December 2004 was £1.915m (31 December 2003: £1.1m)

Highlights from the three primary components of Interregnum's business were as
follows:

Interregnum Advisory Business
Advisory revenues increased to £453,000 (1H2003-4: £290,000), but this does not
yet show the full impact of the 7 new people hired during the period. On 16
December Interregnum acted as a placing agent alongside Collins Stewart in the
£5.6m placing announced by Screen plc (AIM: SEN/L).

Investment Portfolio
The investment portfolio continued to perform well. New investments into the
portfolio increased to £458,000 (1H 2003-4: £125,000). These included £250,000
in Future Route, a supplier of software which helps financial institutions
detect and prevent credit card fraud, and £150,000 in Oilcats, a provider of
Supply Chain Content Management software and services to the Energy sector.

There were no significant realisations from the investment portfolio (1H 2003-4:
£181,000), and the portfolio (net of provisions) was valued at £3.051m (31
December 2003: £2.499m)

Subsidiary Companies

CDS completed its first full trading period since its acquisition by
Interregnum, generating revenues (for the six months to 31 December 2004) of
£2.313m, net before tax profits of £86,000, and net positive cash flow of
£173,000. CDS has focused on higher-margin, complex wireless infrastructure
work, leading to deeper business relationships with operators such as O2, 3,
T-Mobile, and BT, with equipment vendors such as Nokia, and with large property
owners such as BAA.

Ken Olisa, Interregnum Chairman and Chief Executive commented: 'We are pleased
with the progress of all parts of our business. CDS and Yospace are now making
significant contributions to group revenues, and we expect AVM to continue this
trend. The investment portfolio generally is performing well, and we are
particularly pleased with the speed at which the new members of Interregnum's
advisory team have been integrated into the business; we expect them to make a
substantial contribution to both advisory revenues and deal flow during the
second half of FY2003-4 and beyond.'
                                    - Ends -

Contacts:

Interregnum                                             020 7494 3080
Ken Olisa, Chairman and CEO

Merlin (PR advisers to Interregnum)                     020 7653 6620
Vanessa Maydon                                          07802 961 902
Rebecca Penney                                          07795 108 178

Notes to Editor

Interregnum plc (www.interregnum.com), is an AIM-listed technology
merchant bank (symbol: ITR). Established in 1992, it provides advisory
services including corporate finance, IP exploitation and commercial due
diligence to corporates, government, technology entrepreneurs, advisors and
investors. In addition it invests in technology companies, focused primarily
on principal equity stakes although, in some cases taking minority equity
stakes.


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