Result of Open Offer

Kern River PLC
8 November 2000

                              Kern River plc
                      Results of Placing and Open Offer

The Company is pleased to announce that valid applications have been received
from Qualifying Shareholders for 246,927 new Ordinary Shares under the Open
Offer announced on 18 October 2000 which closed today. This number represents
9.5 per cent. of the 2,590,000 new Ordinary Shares which were placed subject
to clawback. 8,910,000 new Ordinary Shares, which were placed firm, and
2,343,073 new Ordinary Shares not applied for under the Open Offer will be
taken up by placees.

An extraordinary general meeting has been convened for 14 November 2000 at
which a resolution will be proposed to increase the authorised share capital
and to provide the Directors with the appropriate authorities, inter alia, to
implement the Placing and Open Offer. It is expected that the new Ordinary
Shares will be admitted to trading on the Alternative Investment Market of the
London Stock Exchange on 15 November 2000.

8 November 2000

For further information please contact:

Kern River plc

Neville A Brown, Non-executive chairman
(via Marshall Securities Limited)          020  7490 3788


Marshall Securities Limited

Robert Luetchford/John Webb                020 7490 3788