Re Contract

K3 Business Technology Group PLC
26 July 2001



K3 Business Technology Group plc wins Contract in excess of £1,000,000.



K3 Business Technology Group plc has won an order worth £1,000,000 to supply a
total IT Business Management solution to five sites within a major
international aerospace engineering group.



The five businesses are principally involved with Contract Manufacture and are
all located in the UK.



The Customer recognised the need for a new, integrated manufacturing system
that would address a number of problems at the sites. These included the use
of too many manual processes, and insufficient control over manufacturing
operations from the existing IT system. In addition, the company needed to
achieve a strategic goal of improving customer service levels.



K3's IBS Business Management solution will be implemented to provide a fully
integrated system for 168 concurrent users across the five sites. The IBS
workflow-enabled solution will provide comprehensive visibility, traceability,
contract management and total management of the 'As Built' process through the
IBS simultaneous engineering systems.



John Nash Sales Director of K3 commented 'K3 were selected as the client was
looking for an established 'business excellence' IT partner focused in the SME
market, that would give a cost effective solution across the 5 sites, with a
measurable Return on Investment. The IBS solution from K3 will not only
provide increased visibility throughout the business, but help it to achieve
improved customer service levels.'



K3 is also pleased to announce a Contract with the Advanced Composites Group
Ltd of Heanor, Derbyshire who have selected IBS, to meet the demands from the
continuing growth in its business.



Advanced Composites Group provides a unique combination of composite
materials, design and manufacturing expertise to customers worldwide. From its
origins in the motor racing industry, the Group has expanded into other
composite markets including aerospace, defence, wind energy, communications,
marine and sports & leisure.'



K3's CEO Andy Makeham commented: 'These two orders taken together mark a
significant step forward for this business unit (which focuses on delivery of
Supply Chain Management solutions to medium sized companies).  This unit has
historically generated revenues of £3,000,000 per annum.  The two contracts
will be delivered, installed and invoiced by quarter three 2002.