Investee Co. applies to OFEX

On-Line PLC
09 February 2005


On-line plc ('On-line' or the 'Company')



Introduction of investee company to OFEX


On-line owns 20% of Smoking Gun Entertainment Group Plc ('SGEG') which yesterday
announced that it has applied to have its entire share capital of 50,000,000
shares of 0.1 pence each to be traded on the OFEX market.  It is expected that
admission will be effective on 28 February 2005.  No capital is to be raised on
admission and it is expected that the opening price will be in the region of 8p,
valuing SGEG at £4 million and On-line's 20% holding at £800,000.



Information on SGEG



Smoking Gun Entertainment Group Plc ('SGEG') was incorporated on 7th February
2005.



After a share reorganisation involving its subsidiary Smoking Gun Holdings
Limited ('SGHL'), it is the 100% owner of the subsidiary.



SGHL has traditionally been a funded (work for hire) developer for the likes of
games publishers Infogames Entertainment, Akaei Plc and Just Flight Limited.



The main product line of SGHL since 1999 has been PC based football management
strategy games. In 2001 SGHL acquired exclusive licences to develop its PC games
based on the branding of Celtic FC and Rangers FC. Since then, SGHL has released
titles based on the branding of more than 40 UK football clubs.



In 2004 the Company took the strategic decision to follow a self-funded, self
publishing business model in order to increase the margins earned from each unit
sold. SGEG now distributes its titles directly through the clubs own retail
channels (both club stores and official websites), and markets its titles
directly to football fans via match day programmes, official magazines and
stadium advertising.



SGEG is now looking to further develop its football strategy titles for
consoles, and online via the Internet. In addition, SGHL is developing a range
of interactive DVD football quiz titles, which will also be sold through the
clubs own retail channels. SGEG has plans to further distribute its football
quiz titles via mobile phones and the Internet.



All IP in the proprietary technology developed by SGHL is vested within the
Company.





For further information please contact :-



Michael Hodges            Chairman         020 7070 0946
Francesca de Franco PR                     020 7070 0932






                      This information is provided by RNS
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