RAM Ram Active

RNS Number:6724X
RAM Investment Group PLC
16 April 2004


FOR IMMEDIATE RELEASE                                              16 APRIL 2004

                            RAM INVESTMENT GROUP PLC
                            ("RAM" or "the Company")

            RAM CONCLUDES CONTRACT TO SUB-SELL SCOTTISH LEISURE PARK

RAM Investment Group, the AIM listed leisure investment company, today announced
that its wholly owned subsidiary Fullwork Limited ("Fullwork") has concluded a
contract to sub-sell the Stack Leisure Park ("Stack") in Lochee, Dundee for
#8,150,000.

RAM has made a profit before costs of #1,045,000 on the transaction and profits
after costs, but before provision for taxation, of approximately #500,000. It is
likely that the transaction will complete between now and 2 August 2004.

In August 2003 RAM announced that it had concluded a contract to purchase the
Feuhold of Stack for #7,105,000. The contract was on the basis of completion on
2 August 2004 or earlier and a deposit of 10 per cent of the purchase price was
paid.

The Stack Leisure Park consists of 7 purpose built units totalling 152,953
square feet. Unit 2 which comprises 25,626  square feet is let to Gala Holdings
Ltd (trading as Gala Bingo); Unit 3 which comprises 43,127 square feet is let to
Megabowl Ltd (trading as Megabowl).  The balance of the space of circa 84,200
square feet in the other 5 units is  currently vacant and formerly traded as two
restaurants, a cinema and a nightclub.

The Directors of RAM have examined a large number of potential investment
opportunities in the leisure sector in recent months and plan to focus on these
opportunities using the anticipated investment profit from the sub-sale of Stack
together with additional sources of finance. The Directors expect to announce
more detailed information on the progress and nature of these leisure
investments shortly.

A letter will be prepared and posted to all shareholders in the next 2 weeks. It
is anticipated, however, that trading in the company's shares on the Alternative
Investment Market will recommence today.

The Directors regret the long period of suspension that the Stack transaction
has entailed for shareholders but look forward to an extremely positive future
for the company.
                                                 
                                    - ends -

For further information please contact:

Edward Adams, Chairman, Magnum Power plc             07967 008448
Roland Cornish, Beaumont Cornish Limited             020 7628 3396
James Chandler, Beattie Financial                    020 7398 3300


Background Information

Business Strategy
The Directors of RAM announced on 7 April 2003 that they would pursue a new
business strategy focussing the company's activities on property and leisure
investment and development.

Transaction

On 7 August 2003 RAM announced that, through its wholly owned subsidiary
Fullwork, it had concluded, but not completed, a contract to purchase the
Feuhold of the Stack Leisure Park for #7.105 million. The completion date was to
be 2 August 2004 or earlier upon Fullwork giving the Vendor 4 weeks written
notice. A deposit of 10 per cent of the purchase price was paid.

The Stack transaction was a good fit for RAM's new business strategy because:

   * The existing tenants and site fit with RAM's strategy of investing in
     leisure related property assets
   * The vacant units have the potential either to be let on a current use
     basis (leisure) or alternatively a change of use may be granted by the local
     planning committee (e.g. to retail)
   * The Directors believed that there could be considerable long term value
     in excess of the #7.105 million purchase consideration available for all
     RAM's shareholders.

The Directors felt that it was appropriate to seek a twelve month completion
period in order to fully maximise the profit and value potential that they
perceived in the site.

Since announcing the Stack acquisition the Directors of RAM have been focused on
the following:

   * Entering into discussions with a significant number of potential tenants
     for the vacant space, some of which could be subject to planning consent for
     change of use
   * Entering into discussions with the Local Authority regarding a potential
     change of use including, but not limited to, retail zoning
   * Identifying and negotiating with potential providers of specialist debt
     and equity finance
   * Entering into discussions as appropriate with potential purchasers for
     some or all of the Units that comprise the Stack Leisure Park.

In progressing this transaction the Directors have avoided incurring significant
costs or charges in relation to this transaction until the optimal strategy for
the acquisition became clear.

In recent weeks offers have been received to acquire some or all of the units of
Stack and the Directors felt that it was appropriate to consider these offers,
both in the context of the potential value that they could bring to RAM and its
shareholders and in the timescale under which they could be achieved.

In addition, the RAM Directors have examined a large number of other potential
investment opportunities in recent months and they believe that it would be a
more productive use of the management team's time and resources to focus on
these other investment opportunities using this anticipated investment profit
and their other sources of finance. The Directors have therefore decided to
sub-sell the Stack site in order to focus their time and resources on new
opportunities.

Transaction Risk
The purchaser of the Stack Leisure Park has placed a non-refundable deposit of
#500,000 into an account jointly held by both parties' solicitors.

There is a small but not insignificant risk that the purchaser may elect not to
complete the contract to acquire Stack. In this instance the purchaser would
forfeit the deposit, but the obligation to acquire Stack would revert back to
RAM's wholly owned subsidiary, Fullwork. Fullwork would be able to offset the
#500,000 deposit against the acquisition cost of Stack.

In such an instance the Directors of RAM would consider all options available,
which would include, but not be restricted to, arranging the finance for
Fullwork to complete the acquisition of Stack, albeit for a total purchase
consideration that would be #500,000 less than previously anticipated.

It is the Directors' opinion that the likelihood of the purchaser failing to
complete the Stack acquisition is small given the deposits that have been paid.
In addition they believe that under the remote possibility that Fullwork is
obliged to complete the Stack acquisition there will be an appropriate solution
available for the benefit for RAM and its shareholders.


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

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