Proposed Rights Issue

Capitaltech PLC
1 October 2001

                       CapitalTech plc ('the Company')

                    Proposed Rights Issue/Share Repurchase

The Company is proposing imminently to make an underwritten, non-assignable,
Rights Issue to members of 20 million New Ordinary Shares of nominal value 2p
each on the basis of one New Share for each 2.87 Shares on the register at the
close of business today.  At the same time the Company is proposing, subject
to the necessary members' approval, to repurchase up to 10 million existing
Ordinary Shares.  The directors, representing 53.37% of ordinary shares,
intend to vote in favour of the approval resolution.  Both the issue and
repurchase will be at the price of 10p, the top end of the market maker spread
as published by London Stock Exchange at noon today.

The repurchase, if approved, will allow shareholders to tender shares for sale
directly to the Company, and may reduce the trickle of shareholders selling
which has had a depressing effect on the share price of the Company in a
relatively illiquid market.

The Rights Issue will in part provide proceeds for the repurchase, and in part
improve the Company's equity/borrowing ratio, and is being made in the light
of (a) the acquisition of the outstanding 50% of PCG Residential Lettings
(No.9) Limited announced on 26 September 2001 and (b) further possible
acquisitions.  The Company is in advanced negotiations regarding the
acquisition, for a consideration which reflects the approximate net asset
value £5 million of 2 residential property investment companies having
together gross residential property assets in the region of £30 million all
located in Scotland and the North of England.  In addition the Company is in
early stage negotiations relating to the acquisition of a third residential
property company, and is also considering the possibility of acquiring some
new-build residential development.

A full announcement will be made upon issue of the relevant circular.

END