Acquisition

Totally PLC 23 October 2000 TOTALLY PLC ('Totally' or 'the Company') Proposed Acquisition of London Jewish News Limited ('London Jewish News') and Sojewish.co.uk Limited ('Sojewish') HIGHLIGHTS * Proposed acquisition of London Jewish News Limited and Sojewish.co.uk Limited for a total consideration of 12,500,000 new Ordinary shares * As a result of the acquisitions, the enlarged group will own a leading UK Jewish newspaper and in the Directors' belief, the UK's leading Jewish Internet site. * The Directors intend to develop the Enlarged Group's activities in the UK, America, Israel, Continental Europe and the former Soviet Union. * During the consolidation of the three businesses, the enlarged group will continue to investigate further opportunities for expansion both in the UK and abroad through acquisition, strategic partnership or organic growth. * Dr Michael Sinclair to join the board of Totally Plc as non-executive Chairman with Tony Caplin remaining as a non-executive director * The Company will have the right to call on Sinclair Montrose Trust to subscribe up to £250,000 for new Ordinary Shares at a price per share being equal to the greater of (a) 40p per share and (b) the price at which the Company shall have issued or be issuing any new Ordinary Shares for cash either at the same time as or prior to the exercise of this right Steve Burns, Chief Executive of Totally plc, commented, 'The proposed deal represents a great opportunity to position and develop the Company as the number one Jewish multi media and leisure group in the world.' For further details please contact:- Totally plc Steve Burns Tel: 020 7692 6929 Chief Executive John East & Partners Limited Tel: 020 7628 2200 John East David Worlidge Simon Clements Hansard Communications.com Ltd Adam Reynolds/Takki Sulaiman Tel: 020 7735 9415 Mob:0385 908158/ 0378 419218 Introduction The Company is pleased to announce that it has entered into a conditional agreement to acquire the entire issued share capital of London Jewish News and all of the issued share capital of Sojewish not already owned by London Jewish News for a total consideration of 12,500,000 new Ordinary Shares. Under the AIM Rules, the acquisitions are classified as a reverse takeover in view of their size and are, therefore, subject to shareholder approval at an extraordinary general meeting ('EGM'). Accordingly, the Company's Ordinary Shares were suspended on 4th October, 2000 following the announcement of the Company entering into heads of agreement which would constitute a reverse takeover. It is expected that dealings will commence on 24th October, 2000. If the Resolutions are duly passed at the EGM, the existing AIM trading facility will be cancelled and a new trading facility granted at the same time. It is anticipated that dealings on AIM in the enlarged issued share capital will commence on 16th November, 2000. Information on the Company The Company was formed to create specialist web sites and portals for clearly defined ethnic and non-ethnic communities and was admitted to AIM in January this year, when it raised £1.8 million (net of expenses) for the development of the Company. The first project of the Group, through totallyjewish.com Limited, was to create a comprehensive on-line Jewish 'virtual community' site, totallyjewish.com, providing a range of Jewish content and information primarily for members of the UK's Jewish community, including contacts, information, buying and selling products or services and entertainment. Since the Company's admission to AIM, the Group has been focused on developing this project and an infrastructure to support future projects. totallyjewish.com was launched on 1st March, 2000. To date it has received sponsorship and advertising from a number of recognised brands, including Legal & General, British Telecommunications, Thomas Cook, DeBeers, Time Warner and Tesco. Other revenue streams including e-commerce, content syndication, database marketing and ancillary services are expected to grow over the coming months. From the launch of the web site to 31st July, 2000 the site has generated a revenue of £184,000. As the business has become more established, marketing, technology and infrastructure costs have reduced. The Directors believe that penetration into the UK Jewish market has been significant with approximately 40,000 unique users visiting the site during August 2000. Currently, the monthly page impressions are in excess of 450,000. Partnership agreements have been signed with a significant number of entities within the UK's Jewish establishment, including The Board of Deputies, UJIA, Norwood Ravenswood, Maccabi Primary Soccer League, Manchester Jewish Soccer League, Jewish Charity Yearbook and All Aboard. Information on London Jewish News and Sojewish London Jewish News London Jewish News publishes a free newspaper servicing London's 225,000 strong Jewish community. The distribution has recently been audited at approximately 40,000. Outlets where the paper is available include Tesco, Sainsbury's, a number of Kosher restaurants and delis and community establishments such as major charities and synagogues. The paper has been in circulation for three and a half years. Revenues have grown steadily from £225,000 in its first year of publication, to £720,000 in the year ended 31st December, 1999. Partnerships with entities within the UK's Jewish community include Maccabi Southern Football League, Jewish Music Festival and Zionist Federation of UK. Sojewish In February 1999, JewishNet, a web site targeting the UK's Jewish community, was launched. It originally featured a cyber-rabbi, an agony aunt and business listings, but it rapidly expanded to incorporate synagogue listings, dating and Kosher recipies. In January 2000 it was announced that JewishNet, in association with Epoch Software, one of the UK's leading e-commerce companies and iDesk, another Internet company, had entered into a joint venture with London Jewish News to launch Sojewish.co.uk as the successor to JewishNet. Details of the Acquisitions The Company is proposing to acquire the entire issued share capital of London Jewish News and on completion of the acquisition it will discharge certain loans payable by London Jewish News to Sinclair Montrose Trust Limited ('SMT '). A total of 8,568,125 new Ordinary Shares will be issued for this purpose, and certain of those new Ordinary Shares will be utilised to discharge (in part) certain further loans made to New Moon Publications PLC and one of its subsidiaries by SMT. In total 8,000,000 new Ordinary Shares will be issued to SMT under these arrangements. The acquisition of London Jewish News is conditional upon, inter alia, the approval of Shareholders at the EGM and admission of the new Ordinary Shares to AIM. The Company is also proposing to acquire the 71 per cent. of the issued share capital of Sojewish not already owned by London Jewish News for a consideration of 3,931,875 new Ordinary Shares. The acquisition of Sojewish is conditional upon, inter alia, the approval of Shareholders at the EGM and admission of the new Ordinary Shares to AIM. In addition, the Company has entered into an arrangement with SMT pursuant to which the Company will have the right to call on SMT to subscribe up to £ 250,000 for new Ordinary Shares at a price per share being equal to the greater of (a) 40p per share and (b) the price at which the Company shall have issued or be issuing any new Ordinary Shares for cash either at the same time as or prior to the exercise of this right. The right will be exercisable by notice given at any time within the period of 120 days following the completion of the acquisitions, and shall lapse if not exercised by the end of that period. Current Trading and Future Prospects of the Enlarged Group Totally The Group's infrastructure has now been developed to support future projects. It is the Directors' intention that the enlarged business will concentrate primarily on creating a Jewish focused multi-media and leisure group, globally. The objective is to bring together complementary businesses by way of acquisition or strategic alliance, in order to deliver significant benefits due to cross fertilisation of sales, marketing, content creation and distribution capabilities. The Directors intend to develop the Enlarged Group's activities in the UK, America, Israel, Continental Europe and the former Soviet Union. The Directors intend that the enlarged group will in time incorporate the following constituents: * Electronic and print publishing * Television and radio broadcasting * Restaurants, bars and clubs * Travel services Immediately following the completion of the Proposals, the enlarged group should benefit from significant cost savings. The Directors believe they will be able to achieve these savings in editorial, sales, marketing, technical resources and infrastructure costs. The intention is to amalgamate totallyjewish.com and Sojewish into one portal, thus eliminating a competitor at the early stage of totallyjewish.com's development. Sojewish will then be absorbed into totallyjewish.com branding. The Directors also believe that the enlarged group will benefit from the revenue growth potential of the combined businesses, as a result of sponsor and advertiser perception of the Company's ability to deliver access to the UK's Jewish community. As a result of the acquisitions, the enlarged group will own a leading UK Jewish newspaper and, in the opinion of the Directors belief, the UK's leading Jewish Internet site. During the consolidation of the three businesses, the enlarged group will continue to investigate further opportunities for expansion both in the UK and abroad through acquisition, strategic partnership or organic growth. Steve Burns, Chief Executive of Totally plc, commented, 'The proposed deal represents a great opportunity to position and develop the Company as the number one Jewish multi media and leisure group in the world. We have assembled a board with proven business acumen who will be able to make this a reality.' For further details please contact:- Totally plc Steve Burns Tel: 020 7692 6929 Chief Executive John East & Partners Limited Tel: 020 7628 2200 John East David Worlidge Simon Clements Hansard Communications.com Ltd Adam Reynolds/Takki Sulaiman Tel: 020 7735 9415 Mob:0385 908158/0378 419218 Notes to Editors:- Directors and Proposed Directors of the Enlarged Group Directors Anthony Caplin (Current Non-executive Chairman), aged 49, is Chairman of SEP Industrial Holdings and iCollector plc and Deputy Chairman of Northamber plc. He is non-executive chairman of G.S. Packaging Limited, Keystone plc, William Clowes Limited and 2020Me ltd. He is also a non-executive director of Easynet plc, Mountcashel plc, Tadpole Technology plc, Intermediate Equity plc and Just plc. On completion of the proposed acquisition, he will step down as Chairman, but will continue in the board. Steven Burns (Chief Executive), aged 33, the founder of the Company, has been involved in consulting since 1991, spending the last 5 years with Conduit Communications Limited (recently purchased by International Integration Inc. and subsequently Razorfish Inc.), a UK consultancy firm, where he held various senior positions including that of managing director of the New York and London offices. He left Conduit Communications Limited in July 1999, following the sale of his equity interest in that company, to establish Totally. Richard Brenner (Finance Director), aged 32, graduated from Middlesex Polytechnic with a BA (Hons) in Accounting and Finance in 1990. Following graduation, he joined Gerald Edelman, Chartered Accountants, where he spent four years in the audit practice, before leaving to become the financial controller in 1994 and later the financial director of Ingersoll Printers Limited, whom he left to join Totally at the end of 1999. Daniel Levitt (Director and Editor-in-Chief), aged 32, achieved a BA Hons in Business Studies from Middlesex Polytechnic. Following graduation, he worked in the media industry, most recently in the position of associate director of Universal McCann Limited, which he left in June 1999. In August 1999 he joined Steven Burns to establish Totally. Andy Margolis (IT Director), aged 36, has worked in the IT industry over the last 15 years for a number of companies and in a wide range of roles, including developer, business analyst, technical architect and software consultant. His last assignment before joining Totally was as the business analyst on a multi million pound communications project within the telecommunications market. Martin Gill (Non-executive Director), aged 39, is a private equity investor with equity interests in Careline Services Limited (a telephony services provider), Skillvest Limited (an Internet training service portal) and Entropy (CMG) II Limited (a property holding company). He is a non-executive director of Skillvest Limited and an executive director of Entropy (CMG) II Limited. Following the sale of his investment in Reportsent Company Limited (an Internet consultancy and development company) to International Integration Inc. ('I-Cube') (a NASDAQ quoted company) in June 1999, he acted as a part- time consultant to I-Cube and its new parent company Razorfish Inc. Mr Gill trained as a chartered accountant with Arthur Andersen & Co and is a member of the Institute of Chartered Accountants of England and Wales. Proposed Directors Dr Michael Sinclair (Proposed Non-Executive Chairman) aged 57, was educated at Harrow and The University of London where he graduated in medicine subsequently specializing in Psychiatry. He is a Senior Partner in Atlantic Medical Partners LP, a New York based Investment Fund, which invests in a portfolio of healthcare companies throughout the USA and Europe. He is also Chairman of Sinclair Montrose Trust Limited, a UK based investment company and a non-executive Director of Numis Corporation PLC. He is a Governor of the Jewish Agency, Chairman of the Executive Board of the World Council for Torah Education and a Trustee of the Agency for Jewish Education, Kesher, Schools' J-Link and the Jewish Outreach Network. He will become chairman of the remuneration committee. Gary Stern (Proposed Executive Director) aged 36. In 1984 he established Lacefern Limited, which then merged with two existing printing companies in 1988 to form Purbrook & Eyres Limited. During 1995, following the disposal of Purbrook & Eyres Limited, he was a producer for several West End shows at the London Palladium, the Vaudeville and the Lyric Theatre. In 1996, he set up London Financial News, a City trade newspaper focussed specifically upon the security and investment banking market. In 1997, he established the London Jewish News newspaper where he is currently the managing director.

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