Acquisition & Trading Update

Calyx Group PLC 11 July 2005 FOR IMMEDIATE RELEASE 11 July 2005 Calyx Group plc ('Calyx') Acquisition of Convergent and Trading Update Calyx, one of the largest single-source providers of information and communication technology ('ICT') network solutions throughout Ireland, today announces the acquisition of Convergent Systems Ireland Ltd ('Convergent'), a leading Irish supplier of communication solutions, for a total consideration of up to €0.6 million (£0.41 million) in cash. Calyx has a broad client base to which it offers ICT network design, sales, installation, training and support and recently completed a successful Placing and Admission to AIM. Convergent was set up in December 1999 and delivers professional services, including consultancy, project management, installation, & support of voice and data products to a wide range of business sectors. As an Avaya Business Partner, Convergent specialises in helping their customers to maximize the use of their existing voice and data infrastructures to reduce costs and improve efficiency. The Convergent client base includes Citigroup, One Direct, American Holidays, AVX, Micros Fidellio, Dublin Tourism, Sportingbet Ireland, Accenture and Norfolkline. The Convergent acquisition will enhance Calyx's skill set particularly in relation to professional services and systems integration. They also bring a healthy client portfolio and a positive, ambitious approach to the converging voice and data market. For the year-end 31 August 2004, the most recent year of which audited figures have been published; Convergent had revenues of €1.3 million, EBITDA of €0.25 million and gross book value assets of €0.66 million. The acquisition of Convergent will be settled by an initial consideration of €0.3 million with a further earn-out payment of up to €0.3 million payable in July 2006, subject to appropriate performance criteria being met. Calyx Trading Update First half trading has been strong and is in line with managements' expectations, which were highlighted at the time of the Placing and Admission to AIM. Calyx continues to experience favourable trading conditions and the Board remains confident about the prospects for the full year. Calyx will update the market on further progress at its interim results, for the 6 months ended 30 June 2005, which will be announced in August 2005. Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said; 'I am pleased to announce the acquisition of Convergent, following our strong first 3 months as a public company. This acquisition is part of our continuing acquisition strategy, as set out at the time of our Placing, and will be an ideal synergistic fit. We will continue to seek appropriate acquisitions which the Board believe will further enhance Calyx's position within the market and provide us with the ability to expand our services throughout Europe.' For further details please contact: Calyx Group plc Maurice Healy, Chief Executive Tel: +353 1 676 3363 Buchanan Communications Tim Thompson / James Strong Tel: +44 (0)20 7466 5000 This information is provided by RNS The company news service from the London Stock Exchange
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