Sale of Narrow Boats

AWG Services PLC 9 July 2002 For Immediate Release 9th July, 2002 AWG Services PLC ('AWG' or 'the Company') Sale of Narrow Boats AWG today announces it has disposed of 92 of the remaining 103 narrow boats held in Anglo Welsh (Overseas) Limited, a wholly owned subsidiary of the Company ('the Transaction'). The boats are being acquired by a small group of private investors ('the Consortium') who hold 11,250,000 ordinary shares, representing 6.93 per cent. of the issued share capital of the Company. Under the AIM Rules, the Transaction is classified as a related party transaction. Under the terms of the agreement, Anglo Welsh (Overseas) Limited ('Anglo Welsh Overseas') is being sold for a consideration of £1. As part of the Transaction, the Consortium will repay to the Company the outstanding inter-company loan of £1.74 million due from Anglo Welsh Overseas. Upon receipt of the loan repayment, the Company will discharge certain financial obligations relating to the narrow boats amounting to £340,000 and a group bank loan amounting to £60,000. The net cash proceeds available to the Company as a result of the Transaction will amount to approximately £1.34 million. As at 31st October 2001, the 92 narrow boats had a net book value of £2.23 million and the outstanding financial obligations in respect of the boats at that date amounted to £0.38 million. The depreciation charge accrued in the period from 31st October 2001 to date was £82,000. Of the 11 boats, which are not subject to this agreement, nine are currently being marketed for sale. The Company is actively considering offers received in relation to seven of these. The Directors consider, having consulted with its nominated adviser, that the Transaction is fair and reasonable insofar as the shareholders are concerned. Stephen Thomson, Executive Chairman of AWG commented; 'The sale of these assets is consistent with the Company's strategy of realising its assets for cash to form a cash shell pending an appropriate new direction via either an acquisition or reverse. The asset disposal exercise has now largely been achieved and we will be able to concentrate on finding an acquisition in the knowledge that the Company's principal asset will be cash'. For further information contact:- AWG Stephen Thomson - Executive Chairman 01603 877 682 John East & Partners David Worlidge/Simon Clements 020 7628 2200 This information is provided by RNS The company news service from the London Stock Exchange DISBXGDRXBGGGDC