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Just2clicks.com PLC (JTK)

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Thursday 01 February, 2001

Just2clicks.com PLC

J2C Restructures

Just2clicks.com PLC
1 February 2001


1 February 2001

J2C SEEKS MAJOR TRANSACTION AND RESTRUCTURES TO REDUCE CASH BURN

Further to the preliminary announcement on 11 January 2001 and following
discussions with a number of substantial shareholders, the Directors of
Just2clicks.com plc ('J2C') have resolved to seek a major transaction for the
Group with the intention of making the best use of the Company's significant
cash assets.

In conjunction with this decision, the Directors also announce a
restructuring of the Group in order to:

*  reduce the operational cash burn of the Group by approximately 50 per
cent. to around £325,000 per month;

*  focus the Group's B2B e-commerce operations on marketplaces where
significant transactional volumes are either guaranteed or are expected in
the short term.  These are Translinx, e-cement, Powernet and Best Value Zone.
A number of other such opportunities are under discussion.

Chief executive, Karl Watkin said, 'We have always been clear that we would
take whatever steps are necessary to enhance shareholder value.  We are
taking action today to refocus the business in an unpredictable emerging
market.  We continue to manage our cash position effectively and intend to
take advantage of the opportunity which our strong cash balance represents in
the current market.  With the restructuring agreed, the Board, in conjunction
with its advisers, is now focused on delivering a major transaction for the
Group.'

The Transaction

The transaction may involve the acquisition of an established business, but
an offer for the Company would also be considered if it delivered value for
shareholders.

Reduction of the cash burn

The restructuring will involve the disposal of three of the Group's
subsidiaries, namely Webfreight, Pulp&Paper.Net and Granite Rock.  This
action will account for a significant proportion of the targeted cash burn
reduction.  In addition, the Directors will seek to find a substantial
industry partner for Powernet in order to assist with the development of
transactional volumes.  J2C currently has an operational cash burn of
£650,000 per month and cash reserves of £40.2 million as at 29 January 2001.

Further announcements in relation to the disposals will be made as
appropriate.

Following the restructuring, J2C's B2B e-commerce operations will be:

BestValueZone

BestValueZone has developed partnerships with Cap Gemini Ernst &Young, Royal
Bank of Scotland and National Westminster Bank to form the BestValueAlliance,
which is a vehicle to address the local authority and public sector e-
procurement marketplace.

The implementation of a number of pilot projects within local authorities
will soon commence and the Directors believe that real savings and benefit
could result, allowing the Group to leverage this technology into other
public sector organisations.

The Best Value and Local Authority Act allied with Government directives to e-
enable the procurement process within the public sector should assist in the
adoption of this technology.

Translinx

The Directors believe that the Translinx marketplace, which addresses the
road transport and logistics industries, is approaching the stage where
meaningful revenues may be generated.

e-cement

J2C will also remain a minority shareholder in e-cement.com, over which
goods and services valued at in excess of $700 million have been traded to
date.


Enquiries:

Brunswick Group Ltd
Gavin Partington                                             020 7404 5959
Russell Hunt

The Directors accept responsibility for the information contained in this
announcement and to the best of the knowledge and belief of the Directors
(who have taken all reasonable care to ensure that such is the case) the
information contained in this announcement is in accordance with the facts
and does not omit anything likely to affect the import of such information.




                                                                              

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