SRS SR EUR Inv.S

RNS Number:3831F
Startup Station PLC 
18 June 2001


           STARTUP STATION PLC ("Startup Station" or "the Company")


                               COMPANY REFOCUS


                    Specialist engineering team recruited

Startup Station Plc announces that following a strategic review it is to
concentrate on the development of new digital technology to bring to the
telephony market, hardware-independent echo cancellation software to meet the
needs of the growing telecommunications industry.


The market for traditional echo cancellation is based on the need to suppress
the echo and background noise which exists during nearly all communications
over traditional copper cables. The Directors believe improving the quality of
telephony communications is an important objective in the telecommunications
industry and it is estimated that US$1 billion per annum is spent on trying to
remove interference from telephone calls.


To date, the major telecommunications companies have relied on in-house
developed hardware solutions specific to their infrastructure. This presents
significant logistical hurdles if, for example, the company wishes to modify
or change part of its technology infrastructure.


Consequently, Startup Station believes that to overcome this, a flexible
alternative is required and that the answer lies in a software solution which
is readily adaptable to any system.


The Company is in the process of putting together a team consisting of several
of the world's leading experts in echo cancellation. The team will be led by
Dr Masoud Ahmadi and Mr Sedat Zaimi, who have entered into service contracts
with Startup Station and are recognised as two of the leading experts within
the industry, both having worked in this field for a number of years as
employees of and consultants to major telecommunications companies. Both Dr
Ahmadi and Mr Zaimi have developed a number of relevant patents and published
technical papers on the subject of echo cancellation and are confident that
the needs of the industry can be met by their software based solution.


Masoud Ahmadi and Sedat Zaimi have each agreed to invest #15,000 in Startup
Station at 5p per share. In addition, the Company will issue to them 3,833,585
warrants each. These warrants will be exercisable at 5p between 18 and 36
months from the date of the grant, subject to the achievement of certain
business objectives. The Company will also issue 3,000,000 warrants to Mr
Changuiz Nazarbaghi, who has been instrumental in raising additional funds and
in the further development of the Company. These warrants will be exercisable
between 18 and 36 months from the date of the grant, subject to the
achievement of certain business objectives.


Application has today been made for admission of 5,600,000 new ordinary shares
of 5p each in the Company to trading on the Alternative Investment Market.
These shares have been issued pursuant to the placing for cash at 5p per share
to raise #280,000 before expenses as funds for the new venture. The shares
will rank pari passu with the existing ordinary shares of the Company.
Dealings are expected to commence in the new ordinary shares on 21 June 2001.
The Directors remain in discussion with other potential investors to subscribe
additional capital.


Dr Ahmadi commented:


"This new opportunity will be developed in-house, from a low cost base and
with ease of distribution. The development of the Echo Cancellation software
overcomes the constraints of traditional hardware solutions and is an
essential element in voice communications, a particular necessity within the
telecommunications industry."


Masoud Alikhani, Chairman, commented:


"This is an exciting opportunity for Startup Station PLC. The Board is
delighted to have agreed terms with Masoud and Sedat and to bring a new focus
to the Company. Over the coming months it is my aim to strengthen the team
further with the objective of securing 10% of the traditional $1bn echo
cancellation market within 3 to 5 years.


Echo Cancellation is a highly specialised discipline and as such the relevant
engineers are known to us and a number have already indicated their interest
in joining Startup Station and being part of this exciting development.


The technology meets the needs of a huge and growing marketplace and we are
anxious to capture a share of it as quickly as possible. We expect to have the
first products available for beta trials within a year."


                                                                18th June 2001

ENQUIRIES:

Startup Station Plc                            Tel: 020 7408 1181
Mr Masoud Alikhani, Chairman

College Hill Associates                        Tel: 020 7457 2020
Michael Padley                                 Mobile: 07768 753512
Nicholas Nelson                                Mobile: 07798 863690

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