FNET Future

RNS Number:9028M
Future Network PLC
9 November 2001

  Not for release, publication or distribution in or into the United States,
  Canada, the Republic of Ireland, France, The Netherlands, Australia, South
                               Africa or Japan.


9 November 2001


                            The Future Network plc


Result of Rights Issue and Secondary Placing


On 28 September 2001 The Future Network plc ("Future" or the "Company")
announced a 6 for 5 Rights Issue, fully underwritten by Morgan Stanley & Co.
International Limited ("Morgan Stanley") and Beeson Gregory Limited ("Beeson
Gregory"), to raise gross proceeds of approximately #34.6 million.



Future today announces that, by 3.00 p.m. on 8 November 2001, the latest time
and date for acceptance and payment in full, valid acceptances had been
received in respect of 166,289,352 New Ordinary Shares pursuant to the Rights
Issue, representing approximately 95.9 per cent. of the 173,418,544 New
Ordinary Shares offered to Future Shareholders by the Company.  This figure
includes 48,907,524 New Ordinary Shares not taken up by Directors,
representing approximately 28.2 per cent. of the New Ordinary Shares offered
in the Rights Issue, which were subscribed by placees procured as part of a
placing by Morgan Stanley and Beeson Gregory with institutional investors.
Under the placing arrangements disclosed at the time of the announcement of
the Rights Issue, those New Ordinary Shares were conditionally placed firm,
nil paid, by Morgan Stanley and Beeson Gregory with institutional investors
who undertook to subscribe for them at the Issue Price of 20p per share.



In accordance with the arrangements referred to in the Prospectus sent to
Future Shareholders, subscribers have today been procured at a price of 27p
per New Ordinary Share for the 7,128,663 New Ordinary Shares for which valid
acceptances were not received.   After deducting the Issue Price of 20p per
New Ordinary Share and expenses of procuring the subscriptions, the net
proceeds of such subscriptions will be remitted to Future Shareholders
entitled thereto, except that entitlements of less than #3.00 will not be paid
but will be retained for the benefit of the Company.  Accordingly,
sub-underwriters will not be required to subscribe for any New Ordinary
Shares.   Fractional entitlements amounting to 529 New Ordinary Shares have
not been issued in accordance with the terms of the Rights Issue.



Dealings in the New Ordinary Shares commenced, fully paid, at 8.00 a.m. on 9
November 2001.  It is expected that CREST stock accounts will be credited for
New Ordinary Shares in uncertificated form by 14 November 2001 and that
definitive share certificates in respect of the New Ordinary Shares will be
despatched by 16 November 2001.



Pursuant to a placing agreement entered into with Morgan Stanley and Beeson
Gregory on 28 September 2001, following the announcement of the Rights Issue
10,050,000 existing Future Shares were placed on behalf of Chris Anderson with
institutional investors at a price of 20p per Future Share.  In addition, on 9
November 2001 Morgan Stanley and Beeson Gregory placed a further 12,000,000
existing Future Shares with institutional investors on behalf of Chris
Anderson at 27p each.  Accordingly, following this placing, Chris Anderson
holds 14,630,537 Future Shares representing 4.6 per cent. of Future's enlarged
issued share capital.  Chris Anderson has notified the Company that he intends
to use the net proceeds of the placing to repay a loan from Morgan Stanley &
Co. Inc. of US$6.8 million against which 32,655,588 Future Shares were pledged
pursuant to a security interest.


Chris Anderson has agreed with Morgan Stanley and Beeson Gregory not to
dispose of, directly or indirectly, his remaining Future Shares until
publication of the Company's preliminary results for the year ended 31
December 2001.  This agreement may be waived in full, or in part, at the
discretion of Morgan Stanley and Beeson Gregory.



Until the net proceeds of the placing are applied in repaying the loan from
Morgan Stanley & Co. Inc. to Chris Anderson the security interest referred to
above will remain in force.



Roger Parry, Chairman of The Future Network plc, commented:



"We are delighted to have completed the refinancing of the business, in what
are, by any measure, difficult equity markets, and with the support we have
received from our shareholders.  The proceeds of the rights issue, together
with our new banking arrangements, provide greater operational flexibility for
the Company and establish a more appropriate capital structure for the Group."



"With the funding issue now resolved, we can focus on those activities Future
does best, namely producing high quality, specialist consumer magazines for
the video games, computing and leisure sectors.  Whilst general economic
conditions and the advertising market in particular remain challenging, there
is encouraging evidence of recovery in the games sector. Sales of PlayStation2
consoles have increased substantially in recent months and with the launch of
Microsoft's Xbox now only a matter of weeks away, the mood within the games
industry is as positive as it has been for some time. As the world's leading
publisher of games magazines, Future is well placed to benefit from any upturn
in this sector.  Against this background, we believe we have achieved strength
and stability in our capital structure and look to the future with renewed
confidence."





Terms defined in the Prospectus shall, unless the context requires otherwise,
have the same meanings in this announcement.



Enquiries:


The Future Network plc
Roger Parry, Chairman
Greg Ingham, Chief Executive                                       01225 442244


Morgan Stanley
Chris Snoxall                                                     020 7425 8000


Beeson Gregory
Tom Price                                                         020 7488 4040


Hogarth Partnership
James Longfield / Georgina Briscoe                                020 7357 9477







This announcement is issued by The Future Network plc and the Directors of The
Future Network plc are the persons responsible for the information contained
in this announcement.  Morgan Stanley & Co. International Limited and Beeson
Gregory Limited are acting exclusively for The Future Network plc and no-one
else in connection with the Rights Issue and will not be responsible to anyone
other than The Future Network plc for providing the protections afforded to
their respective customers or for providing advice in relation to the Rights
Issue or the contents of this announcement.  The contents of this announcement
do not constitute an offer or invitation to acquire shares in The Future
Network plc.





END

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