RNS Number:6719A
Clipper Ventures PLC
09 July 2004



               CLIPPER VENTURES PLC ("CLIPPER" OR "THE COMPANY")


Clipper today announce the proposed acquisition of the entire issued share
capital of Zapcat Racing Limited ("Zapcat") (the "Acquisition"). Zapcat operates
the UK "National Zapcat Championship" , which is a single series power boat
event, involving the racing of rigid, inflatable boats, taking place on either
flat water, open sea or surf. The unaudited accounts of Zapcat for the 12 months
ended 31 December 2003 showed a loss before tax of #46,207 and net liabilities
of #21,205. The Acquisition is conditional on shareholders approval which is
being sought at an extraordinary general meeting of the Company, to be held on
26 July 2004.



Under the terms of the Acquisition, the Company proposes to acquire the entire
issued share capital of ZapCat for a maximum consideration of #521,676.  Of this
sum, #150,005 ("Initial Consideration") will be satisfied by the allotment and
issue to the vendors of Zapcat ("Vendors") 789,500 ordinary shares of the
Company at 19p per ordinary share.



The balance of the consideration ("Deferred Consideration") shall be calculated
by reference to the audited pre-tax profits of ZapCat for the financial periods
ending 31 December 2004, 2005 and 2006.  The Deferred Consideration will be
satisfied by the allotment and issue to the Vendors of up to a maximum of
1,956,167 ordinary shares of the Company at 19p per ordinary share as follows:-


                          Audited pre-tax profits of   Maximum shares in Clipper 
                                  Zapcat up to          Ventures arising on 
                                                              conversion

Year ending December 31 2004         #105,000                    789,500
Year ending December 31 2005         #166,000                    666,667
Year ending December 31 2006         #229,000                    500,000
Total                                #500,000                  1,956,167



If the pre-tax profits of Zapcat are below #50,000 in any year then no Deferred
Consideration will be payable in respect of that year. To the extent that
pre-tax profits fall between #50,000 and the profit target in each year the
Deferred Consideration entitlement will be pro-rated accordingly. In the event
that there is a shortfall from the target in any one year then such shortfall
can be made up in subsequent years up to 31 December 2006 by taking the
aggregate profits over the period.  In the event that there is an excess over
the target in any one year then such excess can be carried forward in subsequent
years up to 31 December 2006.

In addition to the consideration payable for ZapCat, the Company proposes to
make available a facility to ZapCat to enable it to repay director's and
associated loans of #249,296.60 as follows:-


Name                                                       Amount
William Ward                                               #199,296.90
Stasson Investments Limited                                #50,000



William Ward is a director of Clipper, and is also a director and vendor of
Zapcat, owning 94.8 per cent of its ordinary shares. Mr Ward is therefore a
related party as defined under the AIM Rules and, as such, has taken no part in
the board of Clipper's deliberations regarding the Acquisition. The Directors,
save for Mr Ward, consider, having consulted with the Company's nominated
adviser, Corporate Synergy Plc, that the terms of the acquisition are fair and
reasonable insofar as its shareholders are concerned.



Jeremy Knight, finance director of Clipper, commented:



"We are delighted to announce the proposed acquisition of Zapcat. Since its
start, the 'National Zapcat Championship' has made significant progress in the
development of its business and brand, and now attracts in excess of 90
competing teams and benefits from international TV coverage. We believe that
with our proven ability to generate event sponsorship from marine events, there
is significant potential to increase the sponsorship levels currently leveraged
from the Zapcat Championship."





For further information please contact:


Jeremy  Knight - Finance Director                  Tel:  023 8023 7088
Clipper Ventures PLC

John Prior                                         Tel:  020 7626 2244
Corporate Synergy Plc





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

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