Acquisition

23 June 2005

Sage acquires Spanish business management software vendor Logic Control

The Sage Group plc ('Sage') has agreed to acquire Logic Control S.A. ('Logic
Control'), a vendor of business management software in Spain, for an enterprise
value of approximately £55 million, paid in cash. The acquisition is expected
to complete by the end of July 2005.

Logic Control is a vendor of business management solutions for small and
medium-sized businesses, including accounting, payroll and industry-specific
solutions for accountants. Logic Control has over 20,000 customers.

Logic Control's revenue for the year ended 31 December 2004 was £28.2 million
and its operating profit was £3.8 million*. At 31 December 2004 it had net
assets of £20.6 million.

The acquisition of Logic Control significantly expands Sage's coverage of the
Spanish small to medium-sized business market. Logic Control brings additional
and more advanced solutions for medium-sized ('mid-market') customers in Spain,
complementing the small business solutions of our existing Spanish business,
SP.

Paul Walker, Sage Chief Executive, commented, 'acquiring Logic Control
strengthens our product offering in Spain. Logic Control brings more
sophisticated mid-market solutions, along with new solutions for accountants,
that we can offer to our large customer base of over 180,000 businesses'.

All financial information calculated on the basis of £1 = Euro 1.503.

*After adding back amortisation of acquired goodwill and net amortisation of
capitalised R & D.

Enquiries

The Sage Group plc [phone]         Tulchan [phone]

Paul Walker, Chief Executive                    Stephen Malthouse

Paul Harrison, Finance Director

Phil Branston, Investor Relations

Notes to editors

The Sage Group plc is a leading international supplier of accounting and
business management software solutions and related products and services for
small to medium-sized enterprises. Formed in 1981, Sage was floated on the
London Stock Exchange in 1989 and the Group now employs over 8,000 people
worldwide.