RNS Number:6659E
Creative Education Corp Plc
29 October 2004



The Creative Education Corporation Plc ("CEC" or "Company") is pleased to
announce that, further to the announcement on 3 August 2004, it has today
substantially completed the acquisition of the business and assets of the
partnership trading as Happy House Educational Care ("HHEC").

The acquisition was conditional on the receipt of certain written consents,
orders, clearances, authorisations or exemptions and consents to assign
leasehold property.  As at the date of this announcement all of these have been
received other than a licence to assign the lease relating to the property used
by the Little Ducklings Day Nursery, a 48 place nursery in Woodley, Berkshire.
Therefore the acquisition of the Little Ducklings Day Nursery has yet to be
completed, but the acquisition of the other nurseries detailed in the
announcement of 3 August 2004 have now been completed.  The directors of CEC
hope to complete the acquisition of the Little Ducklings Day Nursery prior to 31
December 2004.

The aggregate consideration paid was #2,197,504.77, satisfied as to
#2,097,504.77 in cash and #100,000 by the issue of 1,919,386 new ordinary shares
of 1 penny each in CEC at an issue price of 5.21 pence per share, such price
having been calculated in accordance with the asset purchase agreement as the
average closing price of ordinary shares during the seven dealing days up to and
including the third dealing day prior to today's date.  Application has been
made for these consideration shares to be admitted to trading on AIM with effect
from 3 November 2004.

In order to assist in the financing of the acquisition, Conduit Square Limited
("Conduit") has, pursuant to the terms of the asset purchase agreement and at
the requirement of CEC, acquired the two freehold properties at Crowthorne and
Reading from HHEC for a cash consideration of #1,593,679 and has entered into a
30 year leasehold agreement with CEC on each of these two properties.  Details
of the leases are set out in the announcement dated 3 August 2004.

Therefore the cash consideration paid by CEC as part of the above aggregate
consideration was #503,825.77.  Furthermore, the Company has entered into a loan
agreement with Conduit, pursuant to which Conduit has lent the company an
aggregate of #583,363.50.  The purpose of the loan was to finance the cash
consideration paid by CEC, stamp duty and professional fees.  The loan is
interest free and unsecured and is repayable upon demand.

Conduit is controlled by Laurence Davis and John Baker, who are both current
directors and shareholders in CEC.  As such the loan agreement described above
is considered to be a transaction with a related party for the purposes of the
AIM Rules.

The directors of CEC, other than John Baker and Laurence Davis, have considered
the terms of the loan agreement between the Company and Conduit and, having
consulted with Corporate Synergy Plc, nominated adviser and broker to the
Company, consider it to be fair and reasonable insofar as shareholders are
concerned.


Further information

Laurence Davis
020 7409 7878


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