Re. Share Premium Account

Cheerful Scout PLC
01 March 2006


                               CHEERFUL SCOUT PLC
                      'Cheerful Scout' or ('the Company')
                Update on cancellation of share premium account

The Company is pleased to announce the cancellation of the Company's share
premium account following an order made by the High Court of Justice (Chancery
Division) on 15 February 2006. The cancellation is designed to restructure the
Company's balance sheet in order to facilitate the future payment of dividends
by the Company to shareholders, at the Company's discretion.

                                  * * ENDS * *

Issued on behalf of Cheerful Scout Plc, 25/27 Riding House Street, London by St
Brides Media & Finance Ltd, 46 Bedford Row, London WC1R 4LR.
Contacts:
Gary Fitzpatrick Cheerful Tel: [phone]
Hugo de Salis St Brides Media Tel: [phone]




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