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AdVal Group PLC (ADL)

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Thursday 03 January, 2002

AdVal Group PLC

Acquisition

AdVal Group PLC
3 January 2002


ADVAL GROUP PLC (THE 'COMPANY') ACQUIRES OUTSTANDING MINORITY INTEREST IN
KEYKNOWLEDGE AND ELECTRONIC INTELLECTUAL PROPERTY RIGHTS IN LIBRARY


AdVal Group plc announces that it has acquired all of the issued shares in
KeyKnowledge Limited ('KeyKnowledge') not previously owned by it by buying out
FT Knowledge Limited's 10% minority interest in KeyKnowledge for a
consideration of £25,000. As part of that deal, FT Knowledge Limited has also
transferred to KeyKnowledge all the electronic intellectual property rights in
the library of titles that had previously been licensed to KeyKnowledge.


KeyKnowledge sells off-the-shelf e-Learning titles covering a range of
business, human performance and management skills and has invested
significantly in 2001 to create the 'Professional Management Series' of ten
new generation web-based titles and ten associated videos, the first of these
titles having been launched at the end of 2001.


The purchase of the 10% minority interest in KeyKnowledge from FT Knowledge
Limited has eliminated the original joint venture obligation for KeyKnowledge
to pay ongoing annual licence fees of £175,000 in 2002 escalating by £25,000
increments annually until 2007 when a £300,000 payment would have been
required.


Whilst the new deal means that KeyKnowledge will no longer carry the FT
Knowledge brand beyond 30 June 2002, the removal of the Licence costs of the
brand and the original library is considered by the directors to offer
shareholders the best value in light of current trading conditions. This is
especially the case as KeyKnowledge has now become well established and
recognised in the market place as a brand in its own right. The Company
expects to maintain and build the business, from its new cost base, in line
with improving revenues and profitability as the new generation twenty title
Professional Management Series adds critical mass to the existing KeyKnowledge
library, and impacts the market as corporate buying activity in this sector
returns to normal in the medium to long term.


For further information, please contact:

AdVal Group plc                                                   01296 616 700

Dennis Quilter, Chief Executive

Fleet Financial Communications Limited                            020 7601 1066

Sophie Dutton