RIN Rii

RNS Number:3962Z
Riceman Insurance Investments PLC
22 February 2001



   RICEMAN INSURANCE INVESTMENTS PLC ( 'RICEMAN ' OR  THE
                         'COMPANY ')

Proposed  disposal of entire issued share capital of  Riceman
Investments Limited ( 'RIL ')
           Notice of Extraordinary General Meeting

Introduction

The  Board  of  Riceman (the  'Board ') is today  pleased  to
announce that it has conditionally agreed to dispose  of  the
entire  issued share capital of Riceman Investments  Limited,
the   Company's   wholly-owned  subsidiary,   for   a   total
consideration of US dollar300,000 receivable in cash ( the  '
Disposal ').

Due  to  the  fact  that the Company is  selling  its  entire
operating  business,  the  Directors  believe  that   it   is
appropriate to seek shareholder approval for the Disposal and
completion of the Disposal has been made conditional upon the
approval of Riceman Shareholders at the Extraordinary General
Meeting to be held on 13 March 2001. A circular has been sent
to Riceman Shareholders today.

Reasons for the Disposal

As  explained  in  the Group's interim report  issued  on  30
November 2000, the Group has been trading at a loss for  some
time   despite  continuing  successful  efforts   to   reduce
overheads. Business activity in the territories in which  the
Group's   investments  are  operating  has   been   extremely
challenging in difficult economic conditions.

As  a  consequence, the Board has been considering  for  some
time  various options which might enhance value  for  Riceman
Shareholders. The Board believes that the best way to achieve
this  is  for the Company to dispose of the Group's  existing
business activities currently operated by RIL by means of the
Disposal.   The Company will then be in a position to  pursue
the  development of the Company through acquisitions in areas
unrelated  to  insurance which may provide  opportunities  to
enhance  value for Riceman Shareholders.

Information on Riceman

The  principal activity of the Group is the establishment and
management of insurance companies in the former Soviet Union,
and  the  Group  has  a minority interest in  five  insurance
companies based in the former Soviet Union.

Information on the Purchaser

TB  Investco  Limited, a company registered  in  England  and
Wales,  is  jointly  owned by David Porter  ACII  and  Jeremy
Leggett.   The  Purchaser  is  a newly  incorporated  company
formed for the purpose of purchasing RIL.

Principal terms of the Disposal

The Company has today entered into a conditional agreement to
dispose  of the whole of the issued share capital of  RIL  to
the    Purchaser   (the    'Disposal   Agreement   ').    The
consideration for the Disposal is US dollar300,000 receivable
in cash on completion of the Disposal.

Completion of the Disposal is conditional on the approval  of
Riceman  Shareholders of the Disposal and the  terms  of  the
Disposal Agreement at the EGM.





Current trading and prospects

In  the audited results for the year ended 31 January,  2000,
the  Group generated an operating loss of ster282,503  and  a
loss  before tax of ster252,124 from turnover of ster317,048.
For  the  six  month period ended 31 July,  2000,  the  Group
incurred  an unaudited pre-tax loss of ster125,247 against  a
loss  of  ster182,491 for the corresponding period  in  1999.
Overheads continued to be reduced during this period.

All turnover in the first six months of 2000 arose from small
to  medium  sized  businesses and had it  not  been  for  the
problems   faced   by  Anglo-Azerbaijan  Insurance   Company,
turnover  would  have  exceeded the corresponding  period  in
1999.

Since  31  July,  2000  the  Group has  continued  sustaining
further  losses,  thereby  depleting  its  limited  available
capital.   The  present low income base  cannot  justify  the
still high levels of fixed overheads.

Financial effects of the Disposal

Based  on  the unaudited management accounts of RIL  and  its
principal operating subsidiary, Riceman Underwriters  Limited
(  'RUL  '),  as at 30th November, 2000, the latest  date  to
which  management accounts have been prepared,  the  combined
net  assets  of RIL and RUL at that date (after writing  back
amounts  due  to  the  Company) are estimated  to  amount  to
approximately ster385,000.

The  consideration  for  the  Disposal  of  US  dollar300,000
(representing approximately ster207,000 at the exchange  rate
prevailing at 21 February, 2001, being the latest practicable
date  prior to the date of the circular) will therefore  give
rise  to  a  loss  on  disposal in the  Group's  accounts  of
approximately ster178,000.

The Group following the Disposal

RIL  comprises  the only operating business currently  within
the Group.  Following the Disposal, the Company will cease to
have  any  operating  activities and  its  only  assets  will
consist  of approximately ster360,000 in cash (including  the
net  proceeds  of  the Disposal but before  expenses  of  the
transaction),  and  the  overheads of  the  Company  will  be
significantly reduced.


Contact:       Kamran Amin, Riceman on:  020 7481 1600

               Roland Cornish, Beaumont Cornish Limited  on:
               020 7628 3396


Note:

The  circular to Shareholders was posted on 22 February  2001
and  is  available,  free  of charge,  from  the  offices  of
Beaumont Cornish Limited, Georgian House, 63 Coleman  Street,
London EC2R 5BB.

                              

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