LPX Lipoxen

RNS No 5261r
LOPEX PLC
15th May 1998


Lopex plc ("Lopex")

Acquisitions of Fotorama Holdings Limited ("Fotorama") and SLR Direct
Marketing Limited ("SLR")

Lopex, a leading communications and marketing group, has today agreed terms
for the acquisition of Fotorama, a provider of promotional services and
products, and completed the acquisition of SLR , a direct marketing agency. 
The acquisition of these companies is an important step forward in the
continued development of Lopex.

Fotorama

Fotorama is being acquired for an initial consideration of #4,315,500 million
and further consideration to be based on pre tax profits over the four years
to 31 December 2000 subject to an overall aggregate cap on the consideration
of #10 million.  The initial consideration will be satisfied on completion as
to #4 million in cash and loan notes and the balance by the issue of new
Ordinary Shares.  Application will be made to the London Stock Exchange for
the new shares to be admitted to the Official List.

Fotorama's principal activity is the provision of promotional services and
products in the UK and Ireland either directly for clients, or through their
sales promotion agencies.  It specialises in quoting fixed fees covering every
aspect of a promotion including sourcing, warehousing, distribution of
promotional merchandise and data capture.  Fotorama provides a range of other
related services, including sourcing promotional merchandise, typically from
the Far East and warehousing and distribution services.


Fotorama's activities will complement Lopex's existing handling and fulfilment
facilities at MBO in Basildon.  The Directors believe that there are
significant opportunities for the expansion of Fotorama's business in the UK
and Ireland and potentially in other overseas markets.  The latest audited
accounts show that Fotorama achieved a pre tax profit of #959,000 on turnover
of #10.4 million for the year ended 31 December 1997; net liabilities were
#277,000.

Following completion of the acquisition, Mike Thomas, Non-executive Chairman
of Fotorama, will be appointed a Non-executive director of Lopex.

SLR

SLR will join MBO Limited, Lopex's existing direct marketing operation.  SLR
is a direct marketing agency primarily servicing clients in the financial
services sector.  In the year to 28 February 1998, SLR made pre tax profits of
#96,000 and had net assets at that date of #34,000.  Lopex has acquired the
entire issued share capital for deferred consideration in three instalments
payable in cash.  These instalments will be equivalent to 15 per cent of the
gross profit derived from SLR clients in each of the three years ending 31
March 2001.  The deferred consideration will be subject to an overall cap of
#1 million.  #300,000 was paid at completion to discharge an existing
contractual obligation of SLR.

Peter Thomas, Chief Executive of Lopex, commented:

"The acquisition of Fotorama provides new dimension to our below-the-line
activities and the acquisition of SLR enables us to strengthen our direct
marketing offer in the fast growing financial services sector.

The expansion of these areas consolidates our position as one of the leading
players in the communications and marketing sector." 

The acquisition of Fotorama is subject to the approval of the shareholders of
Lopex at an EGM to be held on 5 June 1998.  A circular will be posted to
shareholders of Lopex later today.


Enquiries:       

Lopex plc                    Peter Thomas                 0181 254 1790
Hudson Sandler Limited       Piers Hooper                 0171 796 4133
KPMG Corporate Finance       Michael Higgins              0171 311 8511

The directors of Lopex accept responsibility for the information contained in
this news release and, to the best of the knowledge and belief of such
directors (who have taken all reasonable care to ensure such is the case), the
information contained in this news release, for which they accept
responsibility, is in accordance with the facts and does not omit anything
likely to affect the import of such information.  This news release has been
issued on behalf of the board of Lopex by KPMG Corporate Finance.

KPMG Corporate Finance, a division of KPMG which is authorised to carry on
investment business by the Institute of Chartered Accountants in England and
Wales, is acting for Lopex in connection with this matter and will not be
responsible to anyone other than Lopex for providing the protections afforded
to clients of KPMG Corporate Finance or for providing advice in relation to
this matter.

END

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