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Friday 10 August, 2001


Proposed Capital Reduction

10 August 2001

                                    J2C plc
                     Update on Proposed Capital Reduction

In  the  announcement of 29 June 2001 the Directors of J2C plc ('J2C'  or  the
'Company')  stated that it was anticipated that a circular, setting  out  full
details  of  the  proposed capital reduction (the 'Circular'),  together  with
notice of an extraordinary general meeting of the Company, would be posted  to
shareholders within six weeks. Progress on the Circular is well advanced,  but
a  number  of  issues remain to be resolved and therefore it  has  not  proved
possible to post it within the six weeks originally anticipated.

The  Circular  will  state the exact amount by which it is proposed  that  the
Company's  capital should be reduced. This proposal will require  approval  by
both  J2C  shareholders and the Court.  Before giving its approval, the  Court
will  need  to  be satisfied that the position of the Company's  creditors  is
adequately protected.  The Court takes a conservative view in this respect and
consequently the Board believes it is in shareholders' interests that as  many
of  the  Company's liabilities and contingent liabilities are settled and  the
Company's  liquid  assets maximised prior to fixing the exact  amount  of  the
proposed capital reduction.

It  is,  therefore, still not possible to state an exact amount to be proposed
for  the  capital  reduction.  In the announcement of 29  June  2001,  it  was
indicated that the Directors anticipated that the amount would be in the range
of  £33  million  to £35 million (equivalent to between 35.5p  and  37.5p  per
share).   The  Directors still consider that the final amount will  be  within
that  range, but believe that it is likely to be towards the lower end of  the


J2C plc                       0191 226 0057
Alan Davidson
Brunswick                     020 7404 5959
Gavin Partington
Corinne Daniels


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