Capital Reorganisation

Evolution Group PLC
02 January 2003


The Evolution Group plc ("the Company")


The Company is pleased to announce that on 18 December 2002 the Court approved
the reduction of the Company's share capital by way of the cancellation of the
deferred shares in the Company's share capital and the cancellation of part of
the Company's share premium account. The share capital reduction became
effective on 19 December 2002 when the order of the Court was registered at
Companies House. Details of the share capital reduction were set out in a
circular to shareholders dated 8 November 2002.

The share capital reduction resulted in a reduction by £48,983,492 in the
deficit on the Company's unconsolidated profit and loss account and has put the
Company in the position where, if it makes profits in the future, it is able to
pay dividends. The Company has given an undertaking to the Court for the
protection of the Company's existing creditors.




For further information please contact:

The Evolution Group plc - 0207488 4040

Alex Snow, Chief Executive Officer

Graeme Dell, Finance Director


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