AXU Abraxus Inv.

RNS Number:3047Z
Abraxus Investments PLC
06 March 2006

                                                                    6 March 2006

                            Abraxus Investments PLC
                                (the "Company")

                                 Trading update


At a recent Board meeting, the Directors considered a report on the current
financial position of the Company with regard to its subsidiary, First AB Kft
and the Budapest hotel project. As a result of ongoing disputes between groups
of shareholders, the Board has decided it is not practicable to progress the
raising of equity share capital. In addition, the Austrian bank which had
previously given an "in principle" commitment to provide loan finance for
development of the Budapest hotel project has confirmed that the facility would
not be made available until such shareholder disputes were settled. The Board is
of the view that these disputes are not capable of being resolved in the short
term.

While the Company's funds are anticipated to be adequate to meet all expenses,
including budgeted expenditure on the Budapest hotel project through to the end
of June, the Board believes that, without the certainty of a loan facility being
available, the Company is not in a position to enter into new commitments with
regard to the Budapest hotel project.

In view of the situation outlined above, the Board has resolved that it is in
the interests of the shareholders that the Company should seek to dispose of its
subsidiary, First AB Kft, including the Budapest hotel property, by way of
public tender. The sale will be conducted by an independent firm of estate
agents at a price which it is anticipated would return the Company's investment
in full. The disposal will be subject to the approval of shareholders at an
extraordinary general meeting.

Following the completion of such sale, the Board will seek to canvass the views
of major shareholders with regard to the Company's future strategy.


Contact:           Westport Communications
                   Alan Frame                         Tel: 020 7405 7777


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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