ANC Abingdon Cap

RNS Number:3488Y
Abingdon Capital PLC
06 May 2004



           Mountcashel LLP confirms initial closing of its first fund
          Abingdon Capital sets its holding in Mountcashel LLP at 25%

Abingdon Capital plc, the AIM-listed integrated financial services business, is
pleased to announce that Mountcashel LLP ("Mountcashel") has today confirmed the
initial closing of its first Mountcashel Fund. It has raised approximately $15
million (#8.4 million) including #2 million from Abingdon Capital.

The Mountcashel Fund will take long and short positions in leading European and
UK equities, derivatives and other securities. Mountcashel was formed in July
2003 and began operating as a regulated hedge fund manager in February 2004.

Abingdon Capital has also finalised terms to confirm that its equity
participation in Mountcashel is now set at 25%. As detailed in the Chairman's
statement of the 2003 Annual Report released on 31 March 2004, this has been
achieved by raising an additional #400,000 of working capital for Mountcashel.
Abingdon Capital chose to reduce its stake in Mountcashel as it prefers to be an
investor with a defined risk rather than a 50% partner with an open-ended future
funding commitment. Moreover, Abingdon Capital believes that a smaller ownership
in an operation where management and employees have a larger stake is more
likely to lead to a better overall financial performance for the Group.

Mountcashel has raised the additional #400,000 from a small group of investors
underwritten by Oliver Vaughan (Chairman of Abingdon Capital) and including two
other Abingdon Capital directors, Thomas Vaughan and Christopher Roberts ("The
Directors"). This fundraising is therefore defined under the AIM Rules of the
London Stock Exchange plc as a related party transaction. The Mountcashel
partners have now contributed #800,000 of capital to Mountcashel. Immediately
following the fundraising, the Directors will hold the following equity
participation stakes in Mountcashel:

Oliver Vaughan          17 %
Thomas Vaughan          2%
Christopher Roberts     2 %

Oliver Vaughan has become a designated member of Mountcashel and as such has
voting rights. Mr Vaughan was also appointed as Chief Executive of Mountcashel
on 7 April 2004. This role requires a time commitment from Mr Vaughan that is
commensurate with a fast-growing fund management company. In return Mr Vaughan
will receive minimum guaranteed drawings of #50,000 per annum.

Edward Vandyk and Gavin Casey, the Independent Directors, having consulted with
KBC Peel Hunt, consider that the terms of the transaction are fair and
reasonable insofar as the Company's shareholders are concerned.

Enquiries, please contact:
Oliver Vaughan/Edward Vandyk   Abingdon Capital     020 7937 4445
Neil Boom/Jenny Leahy          Gresham PR Ltd       020 7404 9000




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

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