K3 BUSINESS TECHOLOGY GROUP PLC
                               ("K3")

                              ANNOUNCES

                          NEW CONTRACT WINS

K3, the IT solutions provider to the manufacturing, distribution  and
retail sectors,  is  pleased to  announce  that its  retail  software
solutions subsidiary, K3 Landsteinar,  has secured two new  contracts
with a total value of approximately £1.5m.

The larger of  the two  contracts is  worth £1,260,000  and has  been
signed with Beale plc, which operates a chain of 12 department stores
in  the  south  and  north-west  of  England.    The  second,   worth
approximately £226,000, is  with one of  Ireland's premier  furniture
retailers.

For both contracts, K3 Landsteinar will be installing and  supporting
Microsoft  Navision  business  management  software.    The  software
provides a complete 'end-to-end' solution  for retailers and will  be
implemented across the head  office, stores operation and  individual
EPOS (Electronic Point of  Sale) tills of both  customers.  With  the
same software running across all aspects of the business process, the
solution provides retailers with enhanced data and sales analysis and
typically delivers lower  cost of ownership  than traditional  retail
solutions.

The major part of revenue arising from these contracts will fall into
the current financial year.

Andy Makeham, Chief Executive of K3 commented,

"K3 Landsteinar is Microsoft's largest Navision partner in the UK and
the  software  suite  represents  a  highly  attractive  solution  to
mid-tier retailers.   These  wins  reflect the  strength of  our  new
business pipeline.  Currently, our  qualified sales pipeline for  our
retail software business is some 25% ahead of last year."


Enquiries:


K3 Business Technology Group    T: 01282 864111
Andy Makeham, Chief Executive
David Bolton, Finance Director

Biddicks                       T: 020 7448 1000
Katie Tzouliadis




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