Embargoed: 0700hrs, 19 January 2004

                             Microcap Equities Plc                             

                                (the "Company")                                

The board of Microcap Equities Plc announces that it is in negotiations
relating to a possible acquisition and is considering a rights issue and
placing contemporaneously with this acquisition. The company has had talks with
a replacement nominated adviser and broker and has been advised that it must
issue an admission document in order for its trading facility to be restored.
That document will include details of any acquisition and fundraising and the
board intends to issue it as soon as possible.

Shareholders will be kept fully informed with further developments.

For further information, please contact

Adam Reynolds

Hansard Communications

020 72451100



END