Acquisition

Capitaltech PLC
27 November 2001

CapitalTech PLC (the 'Group')

ACQUISITION

On 26 November 2001 the Group acquired the entire issued share capital of
Belgrave Residential Assets Limited and Belgrave Residential Investments
Limited ('the Companies'), two residential property investment companies, from
Morrison Residential Properties Limited. The consideration, paid in cash, was
£3,950,000 being the agreed combined net asset value of the Companies at
completion, and intercompany indebtedness of £1,103,671 was repaid to the
vendor. The audited accounts of the Companies for the year to 31 December 2000
reported aggregate net profit of £231,946. This is a substantial transaction
in terms of the AiM Rules. No directors or employees of the Companies shall
continue with the Companies post acquisition.

The audited balance sheets of the Companies at 31 December 2000 reflected
primarily residential property of £27.5m (subsequently reduced by a £3m
disposal) and bank borrowings. The property of the Companies is situated
entirely in Scotland with gross rental income of approximately £2.5m p.a. The
effect on the Group is to improve the size and quality of the Group's
residential property portfolio and that in the Group's targeted strategic
area, Scotland.

Ross Macdonald, Chief Executive, commented: 'This acquisition fits well into
our plans. The property is generally not more than six years old and has been
well maintained. Indeed, given the excellent condition of the property - and
the improbability of excess repair costs in the future - we are happy to be
retaining Morrison Homes as property manager.

The property comprises a total of 465 flats throughout Scotland. Included are
developments of 36 flats in Edinburgh Trinity, 66 West Edinburgh, 32 in
Glasgow's West End and 20 near Glasgow Sheriff Court. Edinburgh Trinity and
Glasgow West End are well established areas, the other two areas are seeing
substantial new development. Inverness property comprises a development of 35
flats, Dundee 22 and Aberdeen three developments totaling 81. Other
developments are in Penicuik (near Edinburgh), Ayr, Irvine, Paisley, Dumbarton
and (the smallest with only 6 units) Galashiels.'

END