Acquisition and Placing

Ingenta PLC 2 October 2000 INGENTA PLC INGENTA ACQUIRES DYNAMIC DIAGRAMS AND UNDERTAKES £7M PLACING LONDON, October 2, 2000 - ingenta plc ('ingenta'), the global research gateway, today announced that it has acquired Dynamic Diagrams, the online journal and website development operations of Cadmus Communications Corporation Inc. ('Cadmus'). Dynamic Diagrams, with operations in Providence (Rhode Island), Baltimore (Maryland), and London provides data conversion, software and online content development services to some of the leading journal and reference publishers in the US including two of the top medical societies and McGraw-Hill. Under the terms of the agreement, ingenta is acquiring the assets of Dynamic Diagrams. The consideration payable by ingenta is equivalent to the net asset value of the assets acquired, up to a maximum of $5.5million, subject to a completion audit. The business acquired generated $3.4million of turnover in the year to 30 June 2000 and on a pro forma basis, adjusting to remove overheads not being acquired, generated an EBITDA loss of $1.1million. Following reorganisation, the business is expected to be profitable from acquisition. To fund the acquisition and associated reorganisation costs and to provide working capital for further growth for the acquisition, Old Mutual Securities is placing 2.5 million new ordinary shares of 5p each in ingenta at a price of 280p per share, raising £6.7 million net of commissions and expenses. 'This acquisition accelerates ingenta's strategy in the United States of providing online services and e-communities for societies and other publishers of research and reference information', stated Mark Rowse, CEO of ingenta. 'Dynamic Diagrams' skill set complements ingenta's in every area and its technology capability is evidenced by its portfolio of world renowned clients: as well servicing academic and research organisations it also provides information architecture and design services to the American Association for the Advancement of Science and global technology companies such as Samsung Electronics and AOL/Netscape.' Continuing, Mr. Rowse said 'With this acquisition, ingenta can extend its range of services which help publishers to host and serve their material online, create e-communities around special interests and reach end users over the Web. In particular, the acquisition provides ingenta with technical capacity in the US to manage increasing demand for its services. The web hosting operations being acquired generate around 1 million unique visits per month, increasing ingenta's traffic by over 50 per cent.' Bruce Thomas, CEO of Cadmus, commented: 'Cadmus has made the strategic decision to concentrate its developmental energies and resources on the creation and implementation of an integrated electronic publishing system - a web-based, modularized system that will permit our Scientific Technical and Medical (STM) publishing customers to lead the movement toward much earlier and more article-based publishing both in print and on-line. We are pleased that ingenta will continue and enhance the services that Dynamic Diagrams historically has provided to our many valued customers.' About ingenta ingenta is the global research gateway serving the online information needs of over 1.4 million visitors a month. It provides a free online search service of published content from reliable research sources not freely searchable elsewhere on the Web and is one of the UK's top 20 Web services. For publishers of professional and academic periodicals and journals, it provides a suite of services including data conversion, secure online hosting and distribution of this material to subscribers and pay-per-view customers. As well as providing Web users with a broad based article search and delivery service through www.ingenta.com, ingenta also develops subject-focused e-communities, built in conjunction with societies, publishers and university presses. In March 2000 ingenta merged with the UnCover Company and in May 2000 it became listed on the AIM market of the London Stock Exchange. In June 2000 it acquired Publisher's Communication Group (PCG). LINKS: http://www.ingenta.com http://www.pcgplus.com http://www.dynamicdiagrams.com CONTACTS: Edward Macquisten/ Mark Rowse David Callcott Jane Hurley CEO Finance Director Golin/Harris Ludgate ingenta ingenta 0207 253 2252 01865 314800 01225 361020 emacquisten@golinharris.com mrowse@ingenta.com dcallcott@ingenta.com

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