ACN Advance Capital

RNS Number:8959F
Advance Capital Invest PLC
27 June 2001



                          Advance Capital Invest plc


                 Proposed Acquisition of IAC Holdings Limited

                 'Reverse Takeover' and Suspension of Shares

Advance Capital Invest plc ("ACI" or the "Company"), the investment vehicle
that floated on the Alternative Investment Market ("AIM") in November 2000
announces that it has signed heads of terms for the acquisition of the entire
issued share capital of IAC Holdings Limited ("IAC"). The Company is
continuing to undertake due diligence on IAC with a view to agreeing a sale
and purchase agreement which would be conditional upon, inter alia, the
approval of ACI shareholders at an extraordinary general meeting and the
re-admission of ACI to trading pursuant to Rule 13 of the AIM Admission Rules.


Under the AIM Rules of the London Stock Exchange, the proposed transaction is
classified as a reverse takeover of ACI by IAC. Accordingly ACI has today
requested the London Stock Exchange to suspend trading in its shares. It is
expected that trading in the Company's shares will resume either when an
explanatory circular is sent to ACI shareholders or in the event that
negotiations are terminated with IAC.


IAC is an integrated film and television development, finance and
international sales agency business. Its business is to raise third party
finance and act as worldwide sales agent on independently produced films. It
does not invest in productions as a principal. IAC, which began trading in
1997 has a number of established relationships with well known producers and
has more recently entered into a joint venture agreement with Martin Bregman.
Such arrangements allow IAC to secure quality product and have more recently
enabled it to focus on larger budget films.


Negotiations are ongoing and subject to, inter alia, further due diligence,
however, it is anticipated at this stage the consideration for IAC will be
satisfied by the issue of ACI shares. In order to fund the expansion of the
enlarged group it is also anticipated that funds, in addition to ACI's current
cash balance of approximately #1.9 million, will be required to be raised by a
placing and open offer.


Following the proposed acquisition it is likely the executive positions of the
ACI board will consist primarily of current IAC employees, most notably Guy
Collins as Chief Executive and Keith Cousins as Chief Operating Officer. Nigel
Whittaker, Chairman of ACI, and Geoff Westmore and Richard Joseph,
non-executive directors of ACI will continue in their respective capacities.
Charles Fairbairn, currently the Finance Director of ACI, will remain as
Finance Director for an interim period until a full time appointment is made.


Commenting on the transaction, Nigel Whittaker, Chairman of ACI, said:


"We are looking forward to the prospect of acquiring IAC, which we believe has
excellent potential. The search to find a suitable opportunity for us to
invest in has been a very thorough one and we have carefully examined a number
of situations. The Board is confident that in IAC we are making the right
choice".


Commenting on the transaction, Guy Collins, Chairman of IAC said:


"We look forward to the additional business opportunities that the proposed
transaction with ACI will bring. The additional working capital and profile
provided by an AIM listing will assist our planned growth strategy. Working
with ACI directors' business experience will also add considerably to our own
expertise."


Further announcements will be made as appropriate.


For further information, please contact:


Nigel Whittaker

Chairman, Advance Capital Invest                   Tel: 020 7796 4133


Alistair Mackinnon-Musson / Philip Dennis          Tel: 020 7796 4133

Hudson Sandler


Chris Callaway / Rob Collins                       Tel: 020 7488 4040

Beeson Gregory

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