Re Contract

RM PLC
20 December 2001

                                                             20 December 2001

               RM ANNOUNCES £800,000 RM STORE BOX CONTRACT WITH
                            SOUTH LANARKSHIRE COUNCIL

RM plc, the leading supplier of software, services and computer systems to UK
educational establishments, announces that it has secured a contract worth
£800,000 to provide the RM Store Box computer network product to South
Lanarkshire Council (SLC). Over one hundred primary schools in South
Lanarkshire will have RM Store Box installed over the next eight months. RM
currently provides complete managed services to schools in SLC under a £5m,
five-year deal awarded in 1998.

This is the first major order for RM Store Box, which is a newly introduced
RM product designed to provide powerful and flexible networking facilities
for schools with limited technical resources. RM Store Box is an addition to
RM's SchoolShare peer-to-peer network and provides facilities, such as
central storage of data and sharing of multimedia CD ROMs, that are normally
associated with complex client-server networks. A key feature of RM Store Box
is that it does not require the high level of technical management normally
associated with client-server architectures. This makes it ideal for
customers such as primary schools where ease of management and ownership is
important.

RM Store Box comes pre-loaded with ten educational CD ROMS, eliminating the
need for teachers to download materials to pupils' PCs before the start of
each lesson. The product is also designed to allow remote support, which
means that RM staff can handle much of the day-to-day management as part of
the SLC managed service.

Commenting on the contract, Richard Girling, Chief Executive of RM said:

'I'm delighted that South Lanarkshire Council has placed the first major
order for RM Store Box. This demonstrates how effectively SLC and RM are
working together in developing and improving the managed service that RM has
been providing to SLC since 1998. The value of the SLC contract has grown
organically as RM has been asked to provide more services, and SLC is now one
of RM's largest managed service customers.

RM Store Box is one of the significant new products we talked about at the
time of our Preliminary Results announcement. I am confident that, by making
infrastructure issues easier to deal with, RM is continuing to allow schools
to focus on getting real educational value out of ICT. By providing a
platform for delivering exciting and innovative multimedia content, RM Store
Box will give teachers and pupils a much improved experience with
technology.'

                                 - Ends -

For further information, please contact:

Mike Greig/Phil Hemmings, RM plc,                           01235 826 000
Fiona Fong/Mark Antelme, Brunswick                          020 7404 5959