New Investment and Update

RNS Number:7804L
London Asia Capital PLC
15 January 2008


15 January 2008

                            LONDON ASIA CAPITAL PLC
                        ("London Asia" or "the Company")

                      Investment in Clean Technology Fund
                              and Strategy Update


London Asia Capital PLC, the AIM listed (code: LDC) Asian focused investment
group, has agreed to invest US$5.0 million (�2.5 million) in the proposed US$200
million London Asia Clean Technology Fund ("the Fund"), managed by London Asia
Fund Management Ltd ("LAFM").

The Fund aims to provide investors with capital growth via investment in a
portfolio of businesses in the clean technology sector. The investment focus is
on late-stage clean technology companies, no matter where incorporated, whose
technology or service is applicable to the markets in Asia. The Fund will l
everage the extensive network of the London Asia Group and its partners around
the world to identify investment opportunities.

The clean technology sector's growth is driven by massive increases in energy
demand in Asia, declining natural resources, increasing economic costs from
adverse environmental effects such as pollution and global warming, increasing
consumer awareness, legislation, and technological advances.

Simon Littlewood, Director of LAFM, said: "We have received significant interest
in the Fund following our pre-marketing last year and we begin actively
marketing the Fund in the UK next week. Following this, we then embark on a
series of road shows in Europe, the Middle East and Australasia. This initial
investment by London Asia enables the Fund to begin investing immediately and
will secure some of the investments already identified for the Fund."

"The London Asia Group, with a strong reputation, over ten years experience in
the sector, existing deal flow, and a network of relationships and offices in
the West and Asia, is well positioned to run the Fund, which will both invest in
Asian businesses in the sector, and seek to acquire technology and businesses
from the West, taking them into the Asian and Middle Eastern markets, which are
cash rich but often lack the technology to solve their environmental and
resource problems."

Jack Wigglesworth, London Asia Chairman, added: "The Company continues to
generate cash from operations and from the disposal of investments, and we
anticipate this continuing as our investment portfolio matures. The Company's
stated strategy of buying back shares in the market is having an effect, with
our share price in the last three months having significantly outperformed the
FTSE All Share Index, the AIM Index and the FTSE Asian indices. We intend to
continue to buy back shares to address the gap between the Company's reported
net assets and share price."

"In March 2006 we launched the UK AIM listed London Asia Chinese Private Equity
Fund ("LCP"), which was fully invested and reported a return on capital invested
of over 50% in its first year of operations, with a number of exits already
achieved. The success of LCP demonstrates the team's ability to raise and invest
cash, and achieve exits.

"The investment in the Fund is an important next step in London Asia's strategic
refocusing of its business. Going forward, London Asia will invest in a range of
funds to be created by the Group, becoming more like a fund of funds business
and moving away from directly investing in and advising individual companies.
This matches the current structure and resources of the Company, which has a non
executive Board with staff working for a series of operating businesses at
subsidiary and associate company level."

"We have historically primarily targeted UK based investors. The last few years
have seen a surge in the level of personal savings in China, and massive
increases in cash levels in China in general, at state owned enterprises, local
and central governments, venture capitalists and private equity and
institutional investors. Last year we made a range of investments in Chinese
financial services businesses, and invested considerable time and resources in
continuing to develop our infrastructure within China to enable us to tap into
this pool of cash, as well as to assist in the exit of our portfolio companies
within China, where valuations which are a multiple of those we have seen in the
UK are being achieved."

"Consequently, the new Fund is targeting both a broader geographical spread of
investors, and a different type of investor, as the Fund will not be listed.
With the volatility in the markets and the fast pace with which both the Asian
markets and the clean technology sector are developing, the Fund needs more
flexibility in its investment strategy than is typically available in a listed
fund. Those investors that prefer to invest in listed stock can gain exposure to
our fund activities through buying London Asia shares, rather than investing
directly in the new funds, with London Asia becoming a channel through which
investors seeking liquidity can invest into non listed funds."


For further information please visit www.londonasiacapital.com or contact:


Cecilia Wong              John West/Andrew Dunn         Jonathan Wright
London Asia Capital plc   Tavistock Communications      Seymour Pierce
Tel: +852 2251 8373       Tel: 020 7920 3150            Tel: 020 7107 8000



About the London Asia Clean Technology Fund

The Fund has been created to provide investors with exposure to the fast growing
clean technology sector. The Fund aims to provide investors with capital growth
from a portfolio of investments in the clean technology sector, primarily those
that own technology and expertise in the sector which is applicable in the Asian
markets.

With rising energy prices, alternative sources of energy, particularly from
renewable sources, have attracted considerable investor interest, as have
related technology and services, such as energy saving technology. Much of the
growth in global energy consumption, which has fuelled the increase in energy
prices, comes from China and India whose booming economies are creating an
emerging consumer class, hungry to start devouring resources the way their
Western counterparts have for so long. With China and India having barely
started using the world's resources - people in the West use an estimated 20x
the energy per head of those in China - the future for clean technology
businesses, particularly those selling into the Asian markets, looks bright.

The Fund has a broad investment mandate, covering natural resources, pollution,
waste, recycling, and the agricultural sector, as well as energy related
businesses. China scores high in the list of the world's most polluted cities,
getting 16 of the top 20 slots according to the World Bank. China itself has
estimated that pollution costs it US$200 billion per annum, roughly 10 percent
of China's gross domestic product. And with only 7% of the world's water, and
over 20% of its population, there are significant opportunities in China's water
sector.

The Fund is managed by principals of the London Asia Group, the Asian-focused
merchant banking group with offices and partners across China and S.E Asia,
North America and Europe. The investment managers have been active in the sector
for more than 10 years and have a wide array of industry contacts and access to
deal flow. Substantial preparatory work has been undertaken to identify
deal-flow for the Fund, including follow on funding for existing portfolio
companies. For information on the Fund, visit www.energyandenvironmentfund.com.
For information on some of London Asia Group's existing clean technology
investments and clients, visit www.asiarenewables.com


About London Asia Fund Management Ltd

LAFM is a Brunei authorised fund management company, 40% owned by London Asia
Capital pte Ltd, the Singapore incorporated subsidiary of London Asia Capital
plc which currently advises the London Asia Chinese Private Equity Fund, and 60%
by its management team, including Simon Littlewood and Victor Ng, co-founders of
the London Asia Group.



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

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