RIN Rii

RNS Number:0027Q
Riceman Insurance Investments PLC
25 August 2000


Riceman Insurance Investments plc announces that the following is the text    of
a letter being mailed to shareholders today:

"Loss of Capital and Extraordinary General Meeting

The audited report and accounts of the Company for the year ended 31st
January  2000  were  recently  mailed to shareholders.  The  consolidated
balance  sheet of the Group at that date showed net assets  of  #694,663,
while  the  balance  sheet  of  the  parent  company,  Riceman  Insurance
Investments  plc,  showed a net deficiency of #17,639 after  taking  into
account an amount due to the main operating subsidiary of #957,207.  This
deficiency  has  arisen as a result of the Group's  principal  source  of
income  being generated within the main operating subsidiary,  while  the
parent  company has historically borne all central overhead expenses  and
those associated with maintaining an AIM listing.

On this basis, the net assets of the parent company have fallen to below     one
half of its called up share capital and, in accordance with Section 142
of the Companies Act 1985, the Directors are required to call an Extraordinary
General Meeting.

The  Directors,  having taken appropriate professional advice,  concluded
that  the  position should be resolved by the payment of a dividend  from
the  principal  operating subsidiary to the parent company  amounting  to
#700,000,  and this dividend was credited to the parent company  on  18th
August. Accordingly the Company has now been restored to a position where
Section  142  of  the Companies Act 1985 is no longer applicable  to  it.
However,  the  Companies Act 1985 nonetheless requires  an  Extraordinary
General  Meeting  to be held and accordingly, although no  resolution  is
required  to be nor will be proposed, shareholders will find a Notice  of
the Extraordinary General Meeting on the reverse of this letter."


For and on behalf of
Riceman Insurance Investments plc

Jeremy P Gorman
Company Secretary

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