Statement re. Suspension

LEPCO plc 28 June 2002 LEPCO plc ('LEPCO' or the 'Company') Proposed acquisition of Sterling Energy Limited (the 'Acquisition') and Placing and Open Offer The Board of Directors of LEPCO plc, the AIM oil & gas company, are delighted to announce that it has, subject principally to funding, conditionally agreed to acquire the entire issued share capital of Sterling Energy Limited ('Sterling') for a consideration of £9.5 million (based on the mid-market price of 5p per LEPCO share), to be satisfied by the issue of new ordinary shares of 1p each in the Company ('New Ordinary Shares'). The acquisition of Sterling will provide LEPCO with a major increase in its North American oil and gas production and reserves, drilling upside and an experienced executive management team with a significant share interest in the enlarged group. As at 31 December 2001, Sterling had net assets of £105,001 and in the period from incorporation on 10 October 2000 to 31 December 2001 Sterling reported profit after tax of £105,000 on turnover of £1,874,000. A condition of the Acquisition is the requirement for LEPCO to raise additional working capital primarily in order to fund the development of Sterling's existing assets. Consequently, the Company proposes to issue new equity for cash via a placing to institutional and other investors (the 'Placing') whilst also allowing existing shareholders to participate in the fundraising by way of an open offer (the 'Open Offer'). The Acquisition is considered to be a reverse take-over under the AIM rules by virtue of its size and will in due course be subject to shareholder approval. The Company has today requested a suspension of trading in its ordinary shares on AIM until such time as an explanatory circular containing further details of the Acquisition and the Placing and Open Offer is sent to shareholders. The Company's annual results for the year ended 31 December 2001 have been published today and the Annual Report is being posted to shareholders. Contacts: Harry Wilson, Chairman Tel: 01582 460 661 Graeme Thomson, Finance Director Tel: 01582 460 661 Geoff Nash, Beeson Gregory Tel: 020 7488 4040 Henry Turcan, Beeson Gregory Tel: 020 7488 4040 This information is provided by RNS The company news service from the London Stock Exchange SSEMFWWSESESM