TRANSACTION UPDATE

NewMedia SPARK PLC
19 July 2002





                       NewMedia SPARK Plc ('The Company)

                              'Transaction Update'

NewMedia SPARK Plc announces that its German subsidiary Spuetz AG has today been
informed that Kling Jelko Wertpapierhandelshaus AG ('Kling Jelko') has filed for
insolvency with the German Financial Services Institute. Spuetz was in the
process of disposing of its warrant trading business to Kling Jelko in return
for a 50.1% stake in that business. The future of that transaction is now
uncertain.

For further information, please contact:

Joel Plasco

NewMedia SPARK plc                    [phone]



19th July 2002




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