RNS Number:4308P
Sky Capital Holdings Limited
05 September 2003



                 SKY CAPITAL HOLDINGS LTD. ("Company" or "Sky")



                     Issue of Convertible Preferred Shares





Sky Capital Holdings Ltd. is pleased to announce that yesterday it raised US 
$9,194,487 (approximately GBP 5.7 million) before expenses, by the issue  of
3,064,829 Series A Convertible Preferred Shares of par value US $ 0.0001
("Series A Shares") per share at an issue price of US$ 3.00 (approximately GBP
1.86).



Series A Shares have an interest rate of 5 per cent. per annum until 30
September 2004 and become convertible, subject to adjustment under certain
circumstances, into a like number of Common Shares of US $0.0001 each. One third
of the Series A Shares become eligible for conversion on 30 September 2003, an
additional one the third become eligible for conversion on 31 March 2004 and the
balance becomes eligible for conversion on 30 September 2004. Application will
be made for the new Common Shares arising on conversion to be admitted to the
Alternative Investment Market of the London Stock Exchange at the appropriate
time.



The proceeds of the issue of the Series A Shares will be used to expand the
Company's operations in both the United States and the United Kingdom.



5 September 2003



Note:

The rate of exchange used for the purpose of this announcement is #1:US$ 1.61



Contact Details


Ross Mandell - Chief Executive                     Tel:  (00 1) 212 709 1900
Sky Capital Holdings Ltd
www.skycapitalholdings.com


Adam Reynolds / Ben Simons                         Tel:  020 7245 1100
Hansard Communications                             ben@hansardcommunications.com
www.hansardcommunications.com




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