Legendary Invest PLC


Legendary Investments PLC
27 December 2000

                          Legendary Investments PLC

               Acquisition of The Accessory People Stake

Legendary Investments PLC ('Legendary'), the AIM listed development capital
group, announces today that it has completed the acquisition of a 10 per cent
interest in The Accessory People ('TAP'), a leading supplier of mobile phone
accessories in the UK, which designs innovative accessories in conjunction
with leading cellular manufacturers. The investment values the fully diluted
ordinary share capital of The Accessory People at approximately £10 million.

Reasons for and benefits of the Acquisition

- Legendary has, for some time, been examining opportunities to broaden its
portfolio by making an investment in design-led businesses with expertise in
managing new product development within customer organisations. This strategy
recognises the emerging interrelationship between hardware suppliers and those
supplying accessories, and is underpinned by the experience of Legendary's

- The Accessory People is one of the largest companies in the UK specialising
in the development, manufacturing, procurement, and distribution of new
accessories. These include a wide range of products for mobile phones,
personal data assistants, and palm top computers which are increasingly
getting smaller and becoming very personal to the individual. For every single
product it is estimated that there are approximately 8 to 10 accessories
available and rising.

- The Legendary Board has concluded that TAP's specialist design and project
management skills when combined with Legendary's resources and brand expertise
should create substantial opportunities to enhance shareholder value for both

- The acquisition of TAP brings to Legendary:

  * one of the UK's market leaders in mobile phone accessories;

  * a strong new product development capability and clearly differentiated
    service offering;

  * a substantial market opportunity to cross-sell additional accessories to
    the existing customer base

- a platform to develop mobile computing and data equipment accessories, in

    there are also suppliers in common; and

- enhanced opportunities for further international expansion, particularly in

The Accessory People was established in 1995 and has grown at a compound
annual rate of over 100 per cent per annum. TAP has an excellent record of
retaining customers and has developed significant recurring revenues through
repeat business.

Following an exceptionally strong year, the directors of TAP estimate that its
profit before taxation for the year ended 31 January 2001 will be ahead of
last year. For the year ended 31 January 2000 TAP made a profit before tax of
£364,638. Its directors plan to seek an AIM listing within the next 12 months.

The consideration for the investment is approximately £1 million to be
satisfied by the issue of 20 million New Ordinary Legendary Shares at 5p,
credited as fully paid. Application will be made for the New Ordinary Shares
to be admitted to AIM.

Commenting on the investment in The Accessory People, Shami Ahmed, Chief
Executive, Legendary Investments stated:

'This is an ideal investment for us - an innovative design-led business where
we can use our experience to support its rapid development. Together, we have
already identified a number of opportunities to accelerate growth and we are
delighted to be involved with TAP's dynamic team at this stage in the
company's development.'

                                                              27 December 2000


Legendary Investments plc                    Tel: 020 7743 6010

Shami Ahmed, Chief Executive

College Hill Associates                    Tel: 020 7457 2020

Michael Padley