MWB - General - 20% Stake in Internet Incubator

Date: 04 Apr 2000

Marylebone Warwick Balfour Group plc ("MWB"), the property-related business services company, today announces that it is subscribing 17.5% of new equity in Illuminator Plc, an emerging internet incubator, for £3.5m cash. In addition, MWB's executive directors are investing a total of £500,000 entitling them to a further 2.5% of new equity on identical tenns as MWB, with Richard Balfour-Lynn, Chief Executive of MWB, becoming a non-executive director of Illuminator.

MWB believes the investment in Illuminator, which is seeking an AIM flotation in April 2000, will enable it to take an active investment role in the rapidly expanding e-commerce and internet sector where substantial opportunities exist. Illuminator distinguishes itself from other incubators because it focuses equally on 'Bricks and Mortar' joint venture transformations as well as more traditional dot com start-ups. It also provides consultancy services to internet and e-commerce businesses.

Through MWB Business Exchange, its serviced office business, MWB is already witnessing the impact of the fast growing internet and e-commerce sector where demand for accommodation in its London serviced offices is beginning to outstrip supply.

Apart from its investment in Illuminator, MWB also has the opportunity to participate in financing and helping companies which Illuminator is incubating. Simultaneously MWB will look to introduce fledgling internet businesses or concepts to Illuminator with MWB taking strategic equity holdings when appropriate.

As part of the overall transaction, a joint venture is being established between MWB Business Exchange and Illuminator whereby the serviced office operator will provide accommodation and support infrastructure for Illuminator's fledgling e-commerce companies whilst having the ability to take equity in return for reduced licence fee levels.

Additionally, through its existing exposure to these businesses, particularly in London and the Thames Valley, MWB Business Exchange will be able to offer its existing client base the benefit of working with Illuminator which can provide both cash for business development and consultancy advice on a wide range of topics. In London 70% of MWB Business Exchange's licensees are internet, telecom and IT based companies, and this two-way deal flow between MWB and Illuminator will provide both companies with an excellent range of opportunities in which to co-invest.

Richard Balfour-Lynn, Chief Executive of MWB, said, "This is a superb opportunity to position MWB and MWB Business Exchange in the heart of the e-commerce revolution. Not only will we be able to participate and invest in new and existing businesses, but we will also have the technical capability, through Illuminator, to expertly screen ideas and companies.

"I believe our investment in Illuminator will become an important element of MWB's future growth strategy, as we are able to access the very best of internet ideas. Simultaneously we can offer existing Illuminator companies modem and efficient accommodation in any one of our 30 Business Exchange offices around the UK helping maintain our existing high occupancy levels."

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