Acquisition of stake in PSE

K3 Business Technology Group PLC
04 November 2003


                        K3 BUSINESS TECHNOLOGY GROUP PLC
                                     ('K3')

                    ANNOUNCES ACQUISITION OF STRATEGIC STAKE
          IN WAREHOUSING AND DISTRIBUTION MANAGEMENT SOFTWARE COMPANY

K3 Business Technology Group is pleased to announce it has acquired a 38% stake
in PSE Ltd ('PSE'), the Lancashire-based warehousing and distribution management
software company.

Established in 1995, PSE has developed specialist Microsoft SQL-based
applications for the manufacturing, distribution and retail sectors. The
software, branded under the 'Elucid' name, supports multi-channel marketing and
improves warehousing and supply chain logistics. It is well-regarded in the
industry and customers include Evesham Technology, Empire Stores and Axminster
Power Tools.

PSE generated approximately £1m turnover for the year ended 30 September 2002
and showed a profit before taxation of £34,000 and net assets of £34,000, having
paid a dividend of £80,000. The initial consideration for the 38% stake is
£95,000 with a further £95,000 due within two years. Should K3's holding in PSE
increase to 50.1% or higher, further consideration will be due, dependent on
turnover.

Andy Makeham, chief executive of K3, commented,

'We are finding increasing demand from our customers for warehousing and
distribution management functionality and because of this entered into a
partnership arrangement with PSE. PSE's Elucid range of solutions have now been
integrated into our core products and our customer response is very encouraging.
This strategic investment is the next logical step, securing the partnership and
extending our product range into this additional growth sector'.

For more details please contact:

K3 Business Technology Group plc                   T: 01270 211211
Andy Makeham, Chief Executive

Biddicks                                           T: 020 7448 1000
Katie Tzouliadis or Kathryn van der Kroft

Rowan Dartington & Co Limited                      T: 0117 933 0011
Barrie Newton, Managing Director





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