Award of contract

Manpower Software PLC 28 April 2005 MANPOWER SOFTWARE PLC ("the Company") AWARD OF CONTRACT Manpower Software plc announces today that, as anticipated in the recent Chairman's Statement which accompanied the 2004/5 Interim Results, it has reached agreement for a sale of its software to Headquarters Land Command, British Army ("HQ Land"). This contract has a value of £3.6 million over 6 years, of which approximately £1.3m should be capable of recognition in the second half of this financial year. Additionally, HQ Land has the option to proceed with further projects valued up to £0.4 million within the first three years of the contract. In the opinion of the Directors, it is likely that commitment to commence these further projects will be given in the first year of the contract. Including the amount under option and amounts already under contract, the total amount now under contract with HQ Land is £5.2 million. The British Regular and Territorial Armies are using MAPS for Force Generation, Force Modelling, state of readiness and training management. HQ Land is responsible for the generation of army formations, units and individuals for operations at home and overseas. All of its soldiers, whether regular or reservist, must be properly equipped and trained and at the correct readiness level for whatever they are required to do. It is therefore essential that HQ Land has, at its fingertips, detailed knowledge of the state of training of its forces and how prepared they are for operations. Manpower Software has been supporting HQ Land for some time in delivering this capability and has previously provided a software tool for Force Generation ("FORGE") to enable HQ Land to manage its reserve forces with greater efficiency and clarity. This capability is now being extended to the whole Army, Regular and Reserve. The recent work on structural adjustments to the British Army highlighted the need to be able to model forces against changing commitments, so that HQ Land could analyse differing levels of its current force structure and examine options to meet future training and operational commitments. Manpower Software has been closely involved in developing this capability and has enhanced the FORGE tool, to provide Force Modelling capabilities that have enabled HQ Land actively to manage and schedule its complex activity-based operations programme. Brigadier (now Major General) Mark Mans, when Assistant Chief of Staff Plans at "HQ Land", has commented: "Throughout the time that we have been involved with Manpower Software we have been particularly impressed with their customer focussed approach and the way in which they have engaged with us in an open and constructive manner that has delivered considerable benefit to our business." Richard Morgan-Evans, Managing Director, said: "Force Generation is at the top of the agenda of every nation involved in rapid expeditionary operations today. The fact that our products meet the requirements of HQ Land and the British Army, who are themselves at the forefront of military strategy, gives me great confidence in the ability of Manpower Software to respond to the changing needs of all other National and International armed forces that are undergoing the process of modernisation. The Company will continue to work closely with HQ Land, building on this success, to extend the functionality of the existing software products, while ensuring that they will be capable of replication to other military forces worldwide." For further information please contact: Manpower Software plc Simon Thorne, Finance Director (020) 7389 9500 Shore Capital Alex Borrelli (020) 7408 4090 Dated 28 April 2005 This information is provided by RNS The company news service from the London Stock Exchange
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