FOR IMMEDIATE RELEASE 28 MARCH 2002

At 31 December 2001, the net asset value of ECTWO Investments plc was £7,585,292 or 8.4p per ordinary share. This compares with a net asset value of £11,856,621 or 13.1p per share at 31 December 2000. After taking account of profit on the sale of investments and amounts written off in respect of investments, there was a loss before taxation of £122,032 compared with a profit in the previous year of £126,902. This represented a loss per share of 0.13p compared with a profit per share of 0.15p. It is not proposed to pay a dividend.

The decline in net asset value was principally attributable to the holding in Firmgrowth Limited. At 31 December 2000, this investment was valued at £4.9 million and represented 61.7% of the investment portfolio. During the year to that date, the company completed a Private Placement at £44.31 per share and was planning an initial public offering. During 2001, it became apparent that market conditions would not permit an IPO and that alternative sources of funding would be required. In a difficult market for TMT companies, Firmgrowth successfully raised a further round of finance and ECTWO supported the company with an additional investment of £250,000. The price of this round, however, was £2.18 per share and this has been adopted for valuation purposes at 31 December 2001.

Firmgrowth continues to develop its business, which is focused on the student market. This includes Activate, the leading UK on-line graduate recruitment medium and NUS Direct, which has an exclusive 30-year agreement with the National Union of Students and has become the leading media channel to the UK student community.

During the year under review, the investment of £250,000 in London-Capital.com was written off and there was a general decline in the value of quoted companies in the portfolio. However, First Artist Corporation, which floated on OFEX and moved to AIM during the year, saw a substantial increase in valuation. Mean Fiddler Holdings merged with Mean Fiddler Music Group plc and the company's loan stock converted into shares that are now quoted on AIM.

Sportingbet moved from OFEX to AIM in January 2001 and continues to make good progress. For the nine month period to 31 December 2001, the company reported revenues of £64.5 million and profit before tax of £3.2 million.

A total of £3,099,626 was invested by ECTWO in 2001, of which £2,849,626 was in 10 companies that were new to the portfolio. Several of these investments are likely to require additional funding and, until further realisations are made, the company does not expect to make any significant new commitments. At year-end, the Company had held in excess of £2 million in cash.

As noted in reports throughout the year, 2001 was a difficult time for investment generally and especially for the kinds of company in which ECTWO invests. Most of these are still at an early stage in the process of building value.

The Board, which is advised by Daniel Stewart and Company, believes that the portfolio contains a number of companies with significant growth potential. It is therefore disappointing to note that the company's share price stands at a substantial discount to net asset value. In the medium term, it is envisaged that the performance of the portfolio will drive the share price forward. In the meantime, however, it is proposed to take powers for the company to buy in its own shares so that the company can itself take advantage of this unacceptably deep discount.

The Company's auditors, Jeffreys Henry, have reviewed the preliminary results.

Daniel Stewart & Company Plc has approved this announcement for the purposes of Section 21 of the Financial Services and Markets Act 2000. Daniel Stewart & Company plc is regulated by the Financial Services Authority.

Peter Shea

Maxine Barnes

UNAUDITED BALANCE SHEET 31 DECEMBER 2001

31-DEC-01 31-DEC-00

FIXED ASSETS

Investments 5,497 7,995

CURRENT ASSETS

Debtors and Prepayments 62 3

Cash at bank 2,072 5,140

2,134 5,143

CREDITORS: AMOUNTS

FALLING DUE WITHIN 1 YEAR (46) (83)

NET CURRENT ASSETS 2,088 5,060

PROVISIONS AND LIABILITIES

Deferred Tax 0 (1,198)

7,585 11,857

CAPITAL AND RESERVES

Share capital 233 233

Share premium account 8,728 8,728

Revaluation reserve (1,355) 2,795

Capital Reserve (203) -

Profit and loss account 183 101

7,585 11,857

Net assets per ordinary share 8.4p 13.1p

Operating loss (192) (119)

Interest receivable and similar income 273 246

(Loss)/Profit on investments

- amount written off investments (250) -

- profit on sale of investments 47 -

(Loss)/Profit before tax (122) 127

Taxation 1 (26)

Profit for the period (121) 101

Earnings per ordinary share (0.13p) 0.15p