Fthr re Disposal

Avingtrans PLC 20 February 2001 Avingtrans plc ('the Company') announces that following completion of the sale of its operating companies to Goldstart Limited in December 2000, the principal operating company, Frank Usher Limited, was indebted to the Company in the sum of £481,291 of which £381,291 represents debts which Frank Usher Limited failed to discharge following completion and the sum of £100,000 which is due to be repaid upon resolution of an insurance claim in respect of the premises in Hendon. The Company has today been advised that both Goldstart Limited and Frank Usher Limited have been placed in receivership and accordingly the Company is unlikely to receive repayment of the outstanding debt of £481,291. In the circular sent to shareholders on 13th October 2000 relating to the disposal of the operating companies, it was stated that following completion of the disposal the Company would comprise assets in cash of approximately £5,000,000. In view of the doubtful recoverability of debt due from Frank Usher Limited the cash assets of the Company will be diminished by this amount. The Company's current cash assets are approximately £4,500,000. The Board, in conjunction with its advisors, is continuing to explore a suitable acquisition for the Company in order to enhance shareholder value.