Hemel Hempstead, 21st June 2005 - Telephonetics, a leading UK-based speech recognition and computer telephony company, announced that its founders have agreed to go public by means of a reverse take over of Leptis Magna Plc (`Plc'), a cash shell quoted on AIM. In addition, the new group will raise additional cash funds of £1.5 million before expenses.

The deal values Telephonetics at just under £16.2 million and is subject to Plc shareholder approval at an Extraordinary General Meeting convened for 1st July 2005. Telephonetics shareholders will control 76% of Plc on completion, at which time it will change its name to Telephonetics Plc.

Telephonetics was founded in 1993, by William Burgar and Anthony Mckay and has been consistently profitable and free of commercial debt. It has experienced substantial growth over the last three years, as market acceptance of speech recognition services has been assisted by improvements in core speech-recognition accuracy and the increasingly sophisticated application of the technology in the production of successful products and services. William and Anthony will remain Managing Directors of the Plc.

Telephonetics' have a comprehensive solutions portfolio including the ContactPortalr, a virtual operator and intelligent messaging system driven by speech. This multi award-winning solution has been chosen to improve communications by a wide array of market-leading organisations including GKN Aerospace, BBC, Affiniti, RTE, Royal Marsden NHS Foundation Trust and Bank Leumi. MovieLINEr, a film information and ticket booking service, is used by over 66% of the cinema multiplex industry including Odeon and Cineworld.

According to Bill Burgar, joint managing director and co-founder of Telephonetics, "This opportunity would not be possible without the commitment and hard work of Telephonetics' dedicated staff. Joining a public market has enabled us to access capital for continued growth and will allow us to investigate opportunities for acquisitions. Investment in expanding our current solutions portfolio and continued product and service innovations will ensure the high level of service provided to our current and future customers will be maintained and further enhance our current excellent reputation and the Telephonetics brand in the speech recognition market."

For further information contact:

Danielle Hearne, PR Manager, Telephonetics

danielle.hearne@telephonetics.co.uk