Acquisition

Calyx Group PLC 20 October 2005 FOR IMMEDIATE RELEASE 20 October 2005 Calyx Group plc ('Calyx') Expanding the Irish network with a €1.28m acquisition Calyx, the largest single-source providers of information and communication technology ('ICT') network solutions throughout Ireland, today announces the acquisition of QCL Technologies Ltd ('QCL'), the Cork based IT product and services company for a total consideration of €1.283 million (£871,000) through cash and shares. The initial consideration comprises 213,140 ordinary shares of €0.10 each (valued at €200,000 (£136,000) based on yesterday's closing price of 64p) and €933,000 (£634,500) in cash. Further deferred consideration of up to €150,000 (£102,000) is payable in cash upon the achievement of specific performance criteria. Established in 1988, QCL has grown steadily to become a leading Irish computer services company focused on providing a broad range of services from initial definition of IT requirements through planning, implementation, sourcing, commissioning, training, system support and maintenance. For each customer QCL provide complete hardware solutions as well as off-the-shelf business software and customised software. QCL also have a Field Service Department supporting their customers' IT systems and networks. QCL's customer base covers all industry sectors including: retail, pharmaceutical, engineering, transport and local authority, and include The A.S.A. Marketing Group; and QUMAS - the Global leader in the development and delivery of software solutions. QCL also has strong supplier relationships with leading computer hardware and software suppliers including Hewlett Packard; Cisco Systems and 3Com. For the year ended August 2005 QCL had audited revenues of €3.95 million (£2.68 million) with a loss before tax of €782 (£532) and net asserts of €215,000 (£146,000). Under the terms of the acquisition all QCL operations will be moved into Calyx's new state-of-the-art offices in Airport East Business Park. General Manager Jack Casey will join Calyx in a senior management role and there are no anticipated job losses with the acquisition. The acquisition is expected to be earnings enhancing for the year ending 31 December 2006. Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said; 'QCL brings a strong 17 year track record as well as good long-term client relationships within the industry which fits well with the established Calyx business brand. They also have a broad range of clients which will now be served by the expanding Calyx group. The businesses are very similar and so integration will be swift and remains in line with the strategic objectives we set out in March when we floated on AIM.' -ENDS- For further details please contact: Calyx Group plc Tel: +353 1 676 3363 Maurice Healy, Chief Executive Buchanan Communications Tel: +44 (0)20 7466 5000 Tim Thompson / James Strong This information is provided by RNS The company news service from the London Stock Exchange
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