Acquisition

Microgen PLC
31 December 2003

microgen

Information Management Solutions

www.microgen.co.uk



31 December 2003




                     Acquisition of Imago QA Limited


Microgen plc, the IT solutions and services company, through its subsidiary MMT
Computing plc ('MMT'), has acquired the entire issued share capital of Imago QA
Limited ('Imago'), a leading UK provider of IT consultancy services for software
acceptance and managed risk-based testing.


The consideration paid in respect of the issued share capital to IQA Holdings
Limited, the holding company of Imago, is £1.11 million in cash. Imago's net
debt at completion was £0.61 million, which MMT intends to repay.  There are no
deferred payments.


Imago was formed in January 1997 and has established a strong position as an
independent specialist consultancy, with a particular industry focus on the
Financial Services sector. For the 12 month period to 30 September 2003,
unaudited management accounts report revenue of £6.8 million and an operating
profit of £43,000. Imago has UK tax trading losses in the order of £5 million
which are being acquired with the transaction. As at 30 September 2003 Imago had
unaudited net liabilities of £151,000.


The Imago business has a blue-chip customer base and at 30 December 2003 has 75
employees, including 49 consultants. Imago will be integrated into the Group's
consultancy operations and will be relocated to Microgen's existing London
facilities. Restructuring charges associated with this integration, estimated to
be in the order of £1.2 million, will be incurred in the current financial year,
including £750,000 in respect of a property provision associated with vacating
the Imago offices in High Holborn, London.


Martyn Ratcliffe, Executive Chairman of Microgen, commented:  'Following on from
the acquisition of MMT Computing plc, the acquisition of Imago further broadens
Microgen's customer base and consultancy offerings. Imago complements our
existing business and, following integration, is anticipated to be earnings
accretive.'



Contact

Martyn Ratcliffe, Executive Chairman
Mike Phillips, Group Finance Director                    01753-847122

Ben Way, Financial Dynamics                              020-7831-3113



www.microgen.co.uk


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