GALLEON HOLDINGS PLC: Placing & Acquisition

Immediate release: 18 July 2005

                             GALLEON HOLDINGS PLC                              

Galleon Announces Major Strategic Alliance with Imagination Holdings Ltd.

Galleon Holdings plc ("Galleon" or the "Company"), the multi media company,
today announces that it has entered into a strategic alliance with Imagination
Holdings Ltd ("Imagination"), which is expected to bring extensive new media
content and market access to the Company. Imagination has successfully
developed content for both television, through its association with major
broadcasters, and also children's books. It is anticipated that Imagination and
Galleon will co-operate on the development and marketing of both the existing
portfolio of children's properties and on the development of new content
building on the successful platform which has been established by Imagination.

As outlined below, the strategic alliance consists of two aspects. Firstly, an
investment by Imagination of £402,326 of cash in the Company and, secondly, an
acquisition by the Company of HHH Limited ("HHH") from Imagination through the
issue of shares in Galleon.

Imagination, whose CEO is venture capitalist David Wong, has subscribed for 24%
of the enlarged issued share capital of ordinary shares (6,705,442 shares, £
402,326 cash) at a price of 6p per share. Imagination is the holding company
for Imagineire (book publishing), Mystical Productions (television production)
and Lavish (interactive brand communications) and is the owner of a portfolio
of children's properties including the hugely successful girl's property
"Mysti" which has its own BBC TV show, a popular range of books and a monthly
magazine.

Pritesh Desai, a director of Imagination will join the Board of Galleon as a
non-executive Director. Mr Desai is a qualified chartered certified accountant
with wide experience in investment management and general corporate
administration.

Galleon has acquired HHH, a licensing and merchandising company. HHH has
exclusive worldwide licensing rights to the "Hoo Ha House", a children's
animation property owned by Imagination. The initial book publishing programme
consists of 16 books over the next 18 months, the first of which will be at
retail in the UK during September 2005. A Hoo Ha House animated television
series is currently in its final development phase at Imagination and expected
to follow the launch of the books. The consideration is 1,396,967 new ordinary
shares at a price of 6p per share.

As a result of both transactions, Imagination will own 27% of the enlarged
share capital of the Company.

Commenting today James Driscoll MBE, Galleon's Chairman said "This strategic
alliance with Imagination is a major development for Galleon. It provides
access to an extensive portfolio of new children's content and also provides
the Company with the additional finance to allow us to maximise the return to
shareholders.

We now have the expertise of building successful entertainment brands in key
categories and channels globally and the acquisition of HHH further
demonstrates our capability to be in control of the exploitation of our IPR."

David Wong, CEO of Imagination said," I am excited by this association with
Galleon. I believe that combining the content of Imagination and Galleon will
be a significant step forward in the development of a successful media business
with a broad portfolio of content in books, television, merchandising and
related areas."

Subsequent to the closing of the Placing, the Company has applied for the new
ordinary shares, which will rank pari passu with existing ordinary shares, to
be admitted to trading on AIM, and expects that admission will occur on Friday
22 July 2005.

For further details please contact:
Jim Driscoll, Galleon Holdings plc - Tel: [phone]
Ben Simons, Hansard Communications - Tel: [phone]


Notes:

Galleon Holdings PLC is an IPR owner and manager that specialises in all
aspects of IPR management including concept creation, development and
commercial exploitation; across multiple channels and categories, on a Global
basis.

Imagination Holdings Ltd is a multimedia holding company that owns and develops
intellectual property through subsidiary companies in the group. These are:
Imagineire Limited, a publishing company; Mystical Productions Limited, a
television and film production company; and Lavish Productions Limited, a
design, content development and marketing company.

Imagination's flagship property is the successful tweenage brand "Mysti", 
www.mysti.co.uk. The Mysti Show, was broadcast for 21 consecutive weeks on BBC
1 and ranked the highest-rated TV show for girls 10-15. A second series has
been commissioned and will be broadcast in the autumn, making a total of over
30 hours of programming. Five books are at retail, with combined sales of over
120,000. A boys' property, 4 Aces, is a successful book series based around the
lives of a team of fictional professional footballers. Its website, 
www.the4aces.com, is a hit with the target demographic of 10-12 year old boys
with thousands regularly playing its free football management game.



END