Offer for Softline Limited

1 August 2003

  Sage announces offer for South African business management software vendor   
                                   Softline                                    

The Sage Group plc ('Sage') announces an offer to acquire the business and
assets of Softline Limited ('Softline'), which is listed on the JSE Securities
Exchange South Africa ('JSE'), for an equity value of £66.0m,to be financed
using Sage's existing debt facilities. Softline has net cash of £11.1m as at 31
March 2003, giving an enterprise value of £54.9m. This announcement follows a
previous announcement, on 25June 2003, stating that Sage was considering making
an offer.

The offer will be considered by Softline's independent process committee, and
is also conditional upon finalising acquisition agreements, Softline
shareholders' approval and regulatory clearances. The offer values Softline at
the equivalent of R2.00 per share, a premium of 6.4% to the closing share price
on 31 July 2003, and a premium of 26.6% to the closing share price on 24 June
2003, before Sage's initial announcement.

Softline is a leading provider of business management software in South Africa
and Australia. The proposed acquisition of the Softline business is consistent
with the Sage strategy of expanding geographically into attractive markets.

Softline's revenue for the year ended 31 March 2003 was £53.5m, with an
operating profit of £7.3m. Softline has net assets of £44.2m.

Simultaneous with this announcement, Softline has issued an announcement of the
salient terms of the offer in accordance with South African regulations.
Further information on the progress of the offer will be announced as
appropriate.

All financial information calculated on the basis of £1 = ZAR 11.9

Enquiries:

The Sage Group plc 0191 255 3000     Financial Dynamics 020 7831 3113       
                                                                            
Paul Walker, Chief Executive         Giles Sanderson                        
                                                                            
Paul Harrison, Finance Director      Harriet Keen                           
                                                                            
Phil Branston, Investor Relations    Caroline Ledosquet                     

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 5,500 people
worldwide.