Investments

Web-Angel PLC
14 August 2000

           web-angel plc announces investments in
           
        Electronic Trading Company and Ascot Drummond



HIGHLIGHTS

*    E-business accelerator web-angel plc ('web-angel')
     increases its stake at a cost of £300,000 in ETC
     (Electronic Trading Company) Limited ('ETC') to a total
     of 9.76%, supplementing its initial earned equity
     position

*    web-angel gains a further 2.55% stake in Ascot Drummond
     Limited ('Ascot Drummond') by way of earned equity
     taking its total equity stake to 5.93% at a total
     investment cost of £205,000

Chris Eyles, Chief Executive of web-angel, said: 'web-angel
is delighted to have made further investments in two
companies which are using the Internet to radically
reorganise and improve the dynamics and efficiency of the
services industries they are targeting.

We view these investment opportunities as an excellent
example of the success of the web-angel business model of
'time-money-value', in which web-angel earns equity through
providing expert e-business strategy advice backed up by
cash investment only after having worked closely and at
length with the management of our investee companies.'



Further information

web-angel announces that it has increased its stake in ETC
at a cost of £300,000 to a total of 9.76% of the ordinary
share capital of ETC. web-angel's total position in ETC of
9.76% has been achieved through a combination of earned
equity as a result of providing e-business strategy advice
and other services to ETC, which has then been supplemented
by an additional cash investment after having worked at
length with ETC's management to shape their ongoing business
strategy.

ETC is an online insurance company that allows users to
research, price and purchase policies quickly and easily
using the Internet. ETC provides consumer brands with an e-
commerce trading platform that enables low cost distribution
of insurance and other related funds whilst maintaining full
brand control.

A panel of leading UK insurers, including AXA,
AllianzCornhill and Fortis, has been recruited to underwrite
a competitively priced suite of streamlined insurance
products. The ETC offering is due to launch in early October
and will initially focus on motor insurance but is expected
to expand to include household and travel insurance. 

ETC has already entered into partner arrangements with ten companies
(including AON) to provide an e-commerce trading platform
for their own-branded online insurance sales, in addition to
distribution to other associated affinity groups and
corporate intranets.

ETC's revenue model is based on a commission-sharing model
with its trade partners, supplemented by additional
licensing arrangements.

web-angel also announces an additional earned equity
investment of 205,882 ordinary shares in Ascot Drummond
(representing 2.55% of the ordinary share capital) taking
web-angel's total cost of its earned investment to date in
Ascot Drummond to £205,000 and its total shareholding to
477,941 shares, representing 5.93% of the share capital of
Ascot Drummond.

Ascot Drummond provides web-based accountancy services to
small businesses. It operates as an outsourced accountancy
function, executing invoicing, bill payment, banking and
other relevant transactions. It provides a customer with 24-
hour access to their company accounts via intuitive web
browser and proprietary software. It has productively
targeted independent IT contractors as its initial customer
group.

Humphrey Drummond, Chief Executive of Ascot Drummond, said:
'We are pleased that web-angel has provided us with
substantial value added advice and services, and has
continued their investment in our business, which continues
to grow rapidly. Our client numbers continue to rise at an
annualised rate of over 500% and we have received a number
of offers of growth financing. Our London front office and
overseas back office staff have doubled in the last quarter
and we have maintained our high standards of service
quality. We continue to believe that Ascot Drummond offers a
unique and valued service to its customers and our business
prospects are excellent'.

Nick Southan, co- Chief Executive of ETC, said: 'We are
delighted that web-angel has made a further investment in
ETC as we come to the conclusion and delivery of our
groundbreaking solution, which will enable the online
distribution of insurance products to major consumer brands.
In light of the recent press coverage of many online
financial companies that have incurred delays and
difficulties in delivering their products to their target
markets, we believe that we have a sustainable and scalable
solution that will prove successful where others have
failed.'

                     

For further information please contact

Chris Eyles, Chief Executive, web-angel plc
020 7400 6377

David Rydell / Mark Way, Bell Pottinger Financial
020 7353 9203



Notes to editors

About web-angel plc

web-angel is an AIM listed e-business accelerator that
advises and resources developing e-commerce companies.
Principally, web-angel provides advisory and consultancy
services to developing e-commerce businesses in the UK and
Europe. In return for these services, web-angel receives
equity or rights to equity and may also make cash
investments in such businesses.

The web-angel concept was initiated in early 1999 by the
Company's Founders: Ermgassen & Co., a pan-European
corporate finance house and OC&C, an international
consulting firm, both of which have been extensively
involved in investing and advising on developing e-
businesses such as Apple, Intel and IBM in the US (through
the McKenna Group) as well as Cadbury Schweppes and BT in
the UK. These founders were subsequently joined by Brait SA,
an investment and merchant banking company listed on the
Luxembourg, Johannesburg and London stock exchanges, which
manages in excess of US$650 million including a US$40
million venture capital fund dedicated to early high-tech
and Internet investing.

Shares in web-angel were admitted to the Alternative
Investment Market (AIM) of the London Stock Exchange after
United Energy plc agreed to acquire the entire issued share
capital of web-angel for £23.1 million, which was satisfied
by the issue of new shares representing 70% of the United
Energy plc's enlarged ordinary share capital.

web-angel is focused on developing and growing a portfolio
of businesses at varying stages of evolution in e-commerce
across Europe and now has equity interests or rights to
equity interests in eight companies.

About ETC

ETC provides companies with established consumer brands with
an e-commerce trading platform that enables the distribution
of insurance and other related products. ETC's proposition
simplifies the buying process and brings to bear the new
technologies in an established marketplace, helping to
reduce the cost of distribution for the insurer. ETC's
positioning combines new electronic processes with the high
profile brand awareness and marketing strategies of the
trading partners. ETC is a private limited company.

About Ascot Drummond

Ascot Drummond provides outsourced web-accounting services
to small and micro companies.  It champions the merits of
cross-cultural partnerships and a significant proportion of
its total staff are employed in the developing world and are
managed and trained by UK-based supervisors. Ascot Drummond
believes its business structure allows its customers to make
significant cost savings in accounting provision.