Re Joint Venture

Web-Angel PLC
3 April 2001



        web-angel plc joins with AU-System to launch
                   new wireless germinator


 HIGHLIGHTS

-    web-angel  plc ('web-angel'), the AIM-listed  e-business
     and  mobile commerce accelerator business, announces  it
     has  helped  to create and taken a stake in a  Stockholm
     based  corporate venturing company (the 'Company') aimed
     at exploiting wireless technology

-    Joint venture agreements have been entered into with AU-
     System,    the    Stockholm-listed    mobile    internet
     consultancy, IT-Provider, a Swedish venture capital firm
     and  McKenna Venture Accelerator ('MVA'), the US venture
     capital fund connected with web-angel.

-    The  new  Company - to be based in Sweden - will develop
     and  commercialise mobile commerce technologies from AU-
     System's   existing  and  future  intellectual  property
     assets through the creation of innovative new companies

-    Committed  initial funding of up to £20  million  to  be
     invested in new companies over the next three years

-    As  a  founding partner, web-angel has secured  a  9.26%
     equity  stake in the Company with an agreement to invest
     - on a discretionary basis - up to £1.9 million over the
     next three years

Penny  Hughes, Chairman of web-angel, said: 'By creating  an
independent corporate venturing vehicle focused on  wireless
technology, web-angel and its world class partners  will  be
able  to  maximise  potential through the  creation  of  new
operating  companies  with  a  clear  focus  and  innovative
approach to product generation and marketing.

'Within  AU-System  is  a wealth of  ideas,  technology  and
dynamism  that has significant commercial potential  and  is
ready  to  be  nurtured  to  deliver  value.  Based  on  the
outstanding  track  record  of  our  partners  I   am   very
enthusiastic about the prospects for the new Company.'

Information:
web-angel plc, the AIM-listed e-business and mobile  commerce
accelerator business, is to take a founding equity stake in a
newly created corporate venturing Company aimed at exploiting
wireless technology.

The  new  corporate  venturing  Company  will  be  based   in
Stockholm, Sweden.

Agreement has been entered into with other equity partners AU-
System, the Stockholm-listed mobile internet consultancy, IT-
Provider,  the  Swedish  venture  capital  firm  and  McKenna
Venture  Accelerator, a US venture capital fund to  establish
the new Company .

AU-System  has a proven track record in developing successful
independent  companies including the  creation  and  sale  of
Across  Wireless  and iD2 Technologies for EUR1.135  billion.
The  added skills of the joint venture partners are  expected
to help strengthen further these abilities.

The  Company  will  have  an  exclusive  corporate  venturing
arrangement  with  AU-System  whereby  it  will  commercially
develop  and  bring to market selected wireless  technologies
and  applications generated from within AU-System's  existing
operations  through  the  creation  of  a  series  of   newly
established companies.

The  Company  will  be  managed  by  a  board  of  directors,
supported by an investment committee, both of which  will  be
drawn from each of its four partners.

Initial  funding  commitment is up to  £20  million  for  new
companies over the next three years. It is envisaged that  up
to four new companies will be created each year.

web-angel has secured a 9.26% stake in the Company,  and  has
agreed  to  invest, at its discretion, up to £1.9 million  in
future new companies established by the Company over the next
three  years. web-angel will also contribute, free of charge,
an  agreed level of management and advisory services  to  the
Company.

web-angel  envisages that it will work closely with  MVA  and
its  strategic partner The McKenna Group, the Silicon Valley-
based   e-business  strategy  partner  of  OC&C,  a  founding
shareholder in web-angel.

web-angel's partners in the Company have all been extensively
involved in technology and communications businesses. Further
information   on  the  Company's  founding  shareholders   is
provided below.

Jens  Bjaroy,  web-angel's Director of Business  Development
based at web-angel's Stockholm office, said: 'I have enjoyed
developing  a close working relationship with AU-System  and
IT-Provider  and  am  excited at  the  prospect  of  working
alongside  not  only  one  of the  worlds  leading  wireless
technology  developers but also one of Sweden's  leading  VC
houses   to   create   new  businesses  using   the   proved
technological expertise of AU-System. This opportunity arose
from the network and roll-out skills that web-angel together
with MVA bring.'


For further information:

Penny Hughes, Chairman web-angel,            020 7400 6377
Nick Tamblyn, Finance Director               020 7400 6377
David Rydell/Miles Bake,
Bell Pottinger Financial                     020 7353 9203


About web-angel
web-angel  is  an AIM quoted e-business and mobile  commerce
Pan-European accelerator investor that advises and resources
developing e-commerce and m-commerce companies. Principally,
web-angel  provides  strategic advisory services,  financial
consulting and consultancy services to developing e-commerce
and m-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.  web-angel is increasing  its  focus  on  mobile
commerce  initiatives (i.e. products and services  that  are
delivered  over wireless networks).  It believes  that  this
initiative   will  best  leverage  the  company's   existing
expertise, capabilities and networks.

The  company's and OC&C's main office is in London and there
are  six  additional offices in Europe including  Stockholm.
web-angel  was established in 1999 by Ermgassen &  Co,  OC&C
and the investment bank Brait S A.

About AU-System
AU-System  is  a leading Mobile Internet consultancy.  Major
clients   include  Ericsson,  Telia,  Scania,   Nordea   and
Singapore  Telecom.  AU-System was established in  1974  and
currently employs more than 1000 staff in offices in Sweden,
UK,  Italy,  the US, Thailand and Singapore.   AU-System  is
listed on Attract40 of the OM Stockholm Exchange, under  the
symbol AUS.

About IT-Provider
IT-Provider  is a leading Swedish venture capital  firm  with
more  than 40 companies in its portfolio and experience  from
25  successful IPOs.  The company is made up of  20  partners
and senior advisers with considerable experience from the  IT
sector  and  has  an  extensive international  network.   IT-
Provider  focuses on its investments primarily  in  companies
active  within  wireless  communications,  software  and  new
media.

About MVA
McKenna   Venture  Accelerator  is  an  early-stage  venture
capital  fund based in Silicon Valley, California.   MVA  is
linked  with  the  McKenna Group, an international  strategy
consulting firm with a 30-year track record as a pioneer  in
high-technology market creation and development.  The fund's
investment   focus  is  in  next-generation   infrastructure
technologies      primarily     wireless     communications,
telecommunications, and e-business platforms. MVA is already
closely   linked   with   web-angel  through   both   shared
investments and Founders.