Veos PLC

Issue of Equity

Veos PLC
2 April 2002

                       Veos plc ('Veos' or the 'Company')

                   $300,000 Convertible Loan Agreement signed



The Board announced on 7 March 2002 that discussions were progressing with
potential investors.

The Board today announced that it has signed an agreement for Tarshish Estates
and Investments Ltd ('Tarshish'), an Israeli investment company, to invest up to
$300,000 in the form of a convertible loan. Under this agreement, Veos will have
the right to draw down the loan at a rate of $20,000 every week as long as the
bid price for Veos 10p ordinary shares is at least equal to par. The agreement
allows for conversion of the drawn down amounts into new Veos 10p ordinary
shares at either the Company's or Tarshish's option. In addition, for each
dollar of the loan which is converted into ordinary shares, Veos will grant to
Tarshish a warrant to subscribe for one ordinary share at par value. Application
will be made for the resulting new ordinary shares to be admitted to trading on
the Alternative Investment Market of the London Stock Exchange. On allotment,
the shares will rank pari passu with existing ordinary shares of the Company.

As announced on 7 March 2002, negotiations are continuing to advance with the
two international investors, who made small subscriptions on 2 January 2002 and
6 March 2002, respectively, to make further investments in the Company. The
Company currently has cash balances totalling £100,000 and monthly outgoings of
around £50,000 per month.

Paul Lever, the Chairman of Veos, commented:

'I am encouraged that forward momentum is at last being achieved. This agreement
represents further progress in the re-financing of Veos. We will continue to
negotiate terms to secure the further funds the business needs to achieve its
objectives. Following drawdown of the Tarshish loan, we intend to progress a
20-F filing with the Securities & Exchange Commission in the US and believe that
a listing of the Company's ADR's in the US will provide improved liquidity in
our shares, which has been sorely lacking over recent months.'


Ends


Contact details:

Paul Lever                Chairman, Veos plc           020 7960 6066

Paul Lewakowski           President, Veos Inc.         001 847 735 0003



                      This information is provided by RNS
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