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[News Release, 26 October 2006]

Elonex Plc announces takeover
takeover heralds an exciting new direction



Elonex announces a corporate takeover.

The takeover will allow a diversification of product ranges and a further  expansion into international markets.

The experienced management team is focused on continued strategic and operational development. Major investment and continued research and development will allow growth into the home electronics sector.

There will also be investment for the continual remodelling of Elonex's flagship Media Center products to provide the superlative in all-in-one solutions.

The takeover will allow Elonex to continue to provide quality and reliable computing solutions as well as meeting the needs of a new client base in the home electronics market. Elonex expects to release a range of newly developed products shortly.