Capital Reorganisation

Dinkie Heel PLC
29 October 2004



                               Dinkie Heel plc

                            Capital re-organisation


At an extraordinary general meeting of Dinkie Heel plc held on 19 April 2004
shareholders approved proposals to effect a Capital Re-organisation and
reduction of the capital and Share Premium Account of the Company. On 13 October
2004 the High Court of Justice sanctioned these proposals. Accordingly the share
capital of the Company is reduced from £1,100,000 divided into 330,403,256
Ordinary Shares of 0.1p each and 15,706,056 Deferred Shares of 4.9p each to
£330,403.256 divided into 330,403,256 Ordinary Shares of 0.1p each.



At the date of this announcement the Company has 144,631,513 Ordinary Shares in
issue. It also has outstanding 72,127,571 Warrants to subscribe at any time
before 19 April 2007 for one Ordinary Share at 2.0p per share.


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