CEC Creative Educ

RNS Number:3044D
Creative Education Corp Plc
24 September 2004



                       Creative Education Corporation PLC



  Acquisition of #400,000 secured convertible loan notes in Academy Childcare
                                   Group Plc



Creative Education Corporation PLC ("CEC"), the AIM quoted provider of nursery
school facilities, announces that it has today acquired #400,000 secured
convertible loan notes ("Loan Notes") in Academy Childcare Group Plc ("Academy")
from Lightning Star Limited and others for a consideration of #645,875 to be
satisfied by the issue of a new #400,000 unsecured convertible loan notes in CEC
("CEC Notes") and the allotment of 4,800,000 new ordinary shares in CEC credited
as fully paid at 5p per share and #5,875 in cash.



The Loan Notes are repayable on or before 31 December 2005 and are convertible
in whole or in part, at the holders option only, into new ordinary shares in
Academy on the following basis:



Up to 31 December 2004 at 5p per share, on or after 1 January 2005 at 1p per
share or, in the event that a conversion event (such as a general offer having
been made for the shares in Academy), has occurred prior to conversion at a 39%
discount to the price at which a conversion event occurred.



Although CEC has no present intention of exercising the conversion rights of the
Loan Notes if such rights were exercised in full prior to 31 December 2004 at 5p
then CEC would own 41.8% of the then issued share capital of Academy, if
exercised on or after 1 January 2005 at 1p then CEC would own 64.6% of the then
issued share capital of Academy.



The CEC Notes are unsecured and repayable on or before 31 December 2007. They
are convertible in whole or in part into new ordinary shares of CEC at 5p per
CEC share at the holders option only.



In conjunction with the acquisition of the Loan Notes, David Alexander and
Raymond Harris, chief executive officer and non-executive director respectively
of CEC, have joined the board of Academy.



Application has been made for the 4,800,000 new ordinary shares in CEC to be
admitted to trading on AIM with effect from 29 September 2004. The new ordinary
shares will rank pari passu in all respects with the existing ordinary shares.





Contacts:



David Alexander - 020 8864 5147

Creative Education Corporation



Adam Reynolds - 020 7245 1100

Hansard Communications




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