Acquisition

Calyx Group PLC 01 March 2006 FOR IMMEDIATE RELEASE 1 March 2006 Calyx Group plc ('Calyx') Calyx completes its largest acquisition to date and acquires Ireland's leading IT security specialist Calyx, the largest single-source providers of information and communication technology ('ICT') network solutions throughout Ireland, today announces the acquisition of Entropy Ltd ('Entropy'), the Dublin based IT security specialist for a total consideration of €4.95million (£3.37 million) through cash and shares. The initial consideration of €4 million comprises of €2.98 million (£2.03 million) in cash and 1.06 million ordinary shares of €0.10 each (valued at €1.02 million (£0.69 million) based on yesterday's closing price of 65.5p). Management will be locked in for 12 months post the acquisition. Further deferred consideration of up to €0.95 million (£0.65 million) is payable again in cash and shares upon the achievement of specific performance criteria 12 months from the date of the acquisition. Established in 1993, Entropy is Ireland's leading IT security specialist and delivers security solutions that help clients across all industries secure their business assets. From design and implementation to support and management, Entropy provides a single point of contact for securing complex networks. Entropy has existing partnerships with top security providers including Microsoft, Nokia, Trend Micro, Websense, Check Point, IronPort and RSA Security. As companies in the UK and Ireland adopt a 'zero tolerance' approach to the security and integration of their I.T. networks and infrastructures, their requirements for outside services and support are becoming more sophisticated and demanding. In addition the incorporation of best practice guidelines and I.T. governance frameworks, such as BS7799, have created a growing market for focused skilled companies such as Entropy. The combination of Entropy's capability and the existing Calyx resource has created a very significant presence in the UK and Irish security services sector. Entropy's current customer base covers all industry sectors including: retail, investment, pharmaceutical, leisure, transport and local authority, and include Waterford Crystal; the Grafton Group - the UK-listed building and plumbing merchants; Zurich Capital Markets - one of the premier alternative asset management firms; United Drug - one of the largest pharmaceutical wholesalers in Ireland; and the Department of the Environment Heritage and Local Government - the Irish government department. For the year ended 31 December 2005 Entropy had audited revenues of €6.25 million (£4.25 million) with profit before tax of €0.59 million (£0.4 million), cash in the bank of €1.1 million (£0.75 million), and net assets of €1.1 million (£0.75 million). Conall Lavery current Entropy Managing Director will remain Managing Director of the division. Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said; 'I am excited to announce this, our largest acquisition so far, as the addition of Entropy to the Calyx group enhances our existing capability and expertise in the security solutions arena. It also takes us closer to our goal of becoming one of the largest providers of specialist ICT infrastructure services in the UK and Ireland. Our customers are now demanding scale and reach from their trusted partners and Calyx is at the forefront of this market as it continues to consolidate. We are pleased to confirm that the current Managing Director of Entropy, Conall Lavery, will remain Managing Director of the division and expect the acquisition to be immediately earnings enhancing. Furthermore, this acquisition remains in line with our strategic objectives as set out back in March 2005 when we floated on AIM.' Calyx will be announcing its preliminary results for the year ended December 2005 on Monday 6 March, there will be a presentation at 09:30am at the offices of Buchanan Communications. 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 NOTES TO EDITORS About Calyx - Calyx is the largest single-source provider of information and communication technology ('ICT') network solutions throughout Ireland and includes the largest technical training operation in Ireland. Calyx is headquartered in Cork, but has offices in Dublin, Limerick and Swindon. This is the 4 acquisition Calyx has completed since its flotation on AIM back in March 2005. Amounts in this document expressed in pounds sterling or equivalent amounts stated in Euros have, unless otherwise stated, been calculated using a rate of £1:€1.47. This information is provided by RNS The company news service from the London Stock Exchange
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