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enterpriseAsia (EPA)

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Thursday 13 January, 2005

enterpriseAsia

Investment

enterpriseAsia PLC
13 January 2005



                    EnterpriseAsia ('EPA' or 'the Company')
                                        
                        announces power plant investment
                                        

In line with the Company's stated strategy of broadening its investment policy
to include the growing energy sector in Greater China, the Board of Enterprise
Asia plc is pleased to announce an investment in a waste incineration power
plant in Southern China.

The Company has agreed terms with Lucky Man Investment Ltd ('LM') to acquire
LM's interests in the Dongguan Bohai Environmental Protection Resources
Development Co Ltd ('Bohai') which owns and operates a municipal solid waste
incineration plant in the city of Houjie in the Dongguan region of Southern
China.

LM's interests represent 9.7% of the annual profits from the plant's operation
for its entire lifecycle which is expected to be 25 years at a minimum.
Subject to regulatory approval on foreign ownership, EPA will have a call option
to convert this interest into a 10% equity stake at any time of the project's
life.

The total consideration payable for LM's interest is £360,000, 60% of which is
to be satisfied by EPA shares and the remainder by a cash payment of £144,000.
The consideration represents approximately 18% discount on the computed present
value of the interest.

The plant, which is forecast to deliver £3 million of revenues in 2005, has an
installed generating capacity of 15MW and is capable of treating 600 tonnes of
waste per day. The plant is currently generating approximately 240,000kWh per
day and is operating at 82% utilisation. In its latest accounts, for the year to
Dec 2003, Bohai showed a profit after tax of 2.24 million yuan (approximately
£160,000) and net assets of 111,828,865 yuan (approximately £7.5 million).

The Company believes that this investment offers a significant upside for EPA as
this power plant is well positioned to take maximum advantage of the strong and
growing regional demand for power, especially that which is delivered in an
environmentally sensitive manner. In recognition of the growing importance of
these requirements and as a sign of on-going support, the local Houjie Municipal
Government granted the plant a tax waiver until the end of 2005 and has
indicated a willingness to review extensions of the waiver thereafter.

LM is owned by Mr Dickson Lai, an established shareholder in EPA. Following the
transaction, Mr Lai would have a beneficial interest in 706,852 ordinary shares
which would represent 44.4% of EPA's enlarged share capital. Mr Dickson Lai is
the father of Mr Ka Lai who is Chief Executive of the Company. Mr Ka Lai
absented himself from the negotiations on the transaction and on the Board
decision to invest.

The directors, other than Mr Ka Lai, having consulted with Insinger de Beaufort,
the Company's Nominated Adviser, consider the terms of the transaction to be
fair and reasonable insofar as the shareholders are concerned.


Davie Auyeung, EPA's Chairman, commented:

'The energy sector in China is a growth market which we believe can deliver
significant returns on investment. We will continue to examine further
investment opportunities in China's energy sector as part of our broader
investment remit and are currently in final stage negotiations on the terms of
one specific project.'

For further enquiries:

Ka Lai, Chief Executive:                                  +852 2116 5900
Phill Brown, Corporate Relations Director:                01274 623 478
Stephen Goschalk, Insinger de Beaufort:                   020 7190 7023
Shane Dolan, Biddicks:                                    020 7448 1000




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

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