AVI Avisen

RNS No 4151x
AVAILEON PLC
22nd December 1998


AVAILEON PLC
Convertible Unsecured Loan Stock

On 21st August 1998 the Company announced the proposed issue of up to #750,000
nominal of new convertible unsecured loan stock ("CULS") 2003/6 to B & C Plaza
Limited ("BCPL") and certain nominated individuals. In addition, a further
#150,000 nominal of convertible unsecured loan stock 2003 was proposed in
exchange for an existing #150,000 loan.

These proposals were approved by shareholders at an Extraordinary General
Meeting held on 14th September 1998 and subsequently BCPL and the nominated
individuals subscribed for the first #250,000 of the CULS and the additional
#150,000 was exchanged for the existing loan.

Under the terms of the agreement with BCPL, they had the option for a period
of two months from the date of the EGM to subscribe for a further #150,000 of
CULS and the option for an additional three months thereafter to subscribe for
the remaining #350,000 of CULS.

BCPL has not taken up its option to subscribe for the next tranche of #150,000
which, under the terms of the agreement, allows the Company to seek an
alternative source of funding for the whole or part of the remaining #500,000.
 

The Board is pleased to announce that Mr. A.K. Robertson has agreed with the
Company to apply the net proceeds of sale of the shares referred to below in
taking up an initial #150,000 of CULS on 20th January 1998.

Substantial Shareholder Dealings

Mr. A.K. Robertson, a substantial shareholder in the Company holding
11,694,067 Ordinary Shares (11.1%), has today notified the Company that he has
sold through the market part of his holding in the Company as set out below:-

      Date                          No. of shares sold
      16th December 1998               3,000,000
      17th December 1998               1,167,856
      18th December 1998               1,750,000
      21st December 1998               2,000,000
                                      ---------
                                      7,917,856 (7.5%)
                                      =========

The above sales reduce Mr. Robertson's holding in the Company to 3,776,211
Ordinary Shares (3.6%).

Current Trading

The Company has invested heavily in winning new catering contracts and
arranging investment finance. The most notable of these are a 5-year extension
to the original 3-year contract with Elstree Film Studios and a new 12-year
contract at Leamington Spa, as part of the local authority's #8 million
refurbishment of the Royal Pump Rooms. The costs associated with winning these
contracts, together with the costs of raising the funding during the year,
will impact on this year's results but the benefits are expected to flow in
future years.


END

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