Issue of Shares

Canisp PLC
18 May 2005


18 May 2005


                           Canisp plc (the 'Company')

                                Issue of Shares


The Company announces that, following the departure of Mr Justin Bygott-Webb
from the Board announced earlier today, it has issued 1,025,641 new Ordinary
Shares to Mr Bygott-Webb's pension fund in lieu of outstanding pension
contributions owed to him.

In addition, with a view to further streamlining the Company's cost base, the
two remaining executive directors, Mike Hirschfield and John Maundrell, have
agreed to reduce their annual salary to £50,000.  As consideration for this
reduction, the Company has issued 117,925 new Ordinary Shares to each of them.
Furthermore, they have agreed to take 50% of this reduced salary in new Ordinary
Shares of the Company. Such shares will be issued on a quarterly basis, the
number of shares being calculated using the average closing bid-price of the
shares over the preceding five dealing days.

The increased proportion of telecommunication services the Company is providing
as a 'switchless reseller' rather than through its own switches and supporting
infrastructure has enabled the Board to make the above changes.  Once the
handover period relating to the disposal of the customer base utilising the
Company's own switches has expired, further reductions will be made to
operational overheads.

These measures announced today are designed to streamline the Company's
structure to reflect more closely the resources the Board believes are necessary
to pursue its current objective of combining organic growth for the existing
business with identification of further acquisitions within fixed line telephony
services.

An application has been made for the 1,261,491 new Ordinary Shares issued today
to be admitted to AIM, admission is expected to take place on 24 May 2005.



Contact: John Bick, Holborn                                        020 7929 5599



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