ARX Aerobox

RNS Number:6640A
AeroBox plc
09 July 2004

                            AeroBox plc ("AeroBox")

      RE: Termination of Agreement with Watermark Group plc ("Watermark")

The Directors of AeroBox are disappointed to note that Watermark has commenced
proceedings. The Directors of AeroBox intend to defend the claim by Watermark
whilst remaining committed to pursuing any compromise that would protect
shareholder value in AeroBox. These proceedings will not deflect AeroBox from
its business.

The Directors of AeroBox have been attempting since November 2003 to obtain
proper documentary evidence of the claims by Watermark for the reimbursement of
marketing spend in accordance with the joint venture agreements. This dispute
caused the trading relationship with Watermark to deteriorate to such an extent
that the Board of AeroBox reluctantly decided that it was not possible to
continue in any form of relationship with Watermark as there had been a
fundamental breach of trust by Watermark that went to the heart of the contract.
As a direct consequence an immediate Notice of Termination was served by
AeroBox, on 27 May 2004 on the grounds that Watermark, by failing to back up its
claims for marketing spend, was not acting in good faith. AeroBox had previously
issued a 6 months' termination notice expiring on 7 November 2004.

Since 27 May 2004, there have been further attempts to negotiate a compromise
with Watermark. Unfortunately Watermark has continued to defend its own position
rather than resolve the matter.

The Directors of AeroBox can only hope that the prospect of close scrutiny by
the Courts will bring Watermark to their senses before more time and money is
wasted to the detriment of shareholder value in both companies.

ENDS

Enquiries:

David Sebire                     Chairman, AeroBox plc          +44 1454 310 066
Richard Scott                    Finance Director, AeroBox plc  +44 7986 423 891

David Bick/Trevor Phillips,      Holborn                        +44 20 7929 5599
Jonathan Wright,                 Seymour Pierce                 +44 20 7107 8000



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

END
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