Acquisition

Smiths News PLC
20 March 2008




                                SMITHS NEWS PLC


Acquisition of 50% interest in Rascal Solutions Limited ('Rascal Solutions') and
      entry into a shareholders' agreement with KEM Investments LLP ('KEM
                 Investments') in relation to Rascal Solutions


Smiths News PLC, ('Smiths News'), a leading newspaper and magazine wholesaler
and distributor, today announces that it has acquired from Retail & Mailing
Solutions LLP a 50% interest in Rascal Solutions, a company specialising in
providing inventory management solutions for use by major retailers in the
magazines and newspapers category.


The total consideration for the acquisition is £3 million in cash, comprising an
initial payment of £2 million and a deferred payment of £1 million (to be paid
on 30 October 2008).


As at the year ended 31 May 2007, Rascal Solutions had gross assets of £1.5
million and for the financial year ended on that date had profits before tax and
shareholder management fees of £0.2 million.  Simultaneously with the
acquisition, Smiths News has entered into a shareholders' agreement with the
other shareholder in Rascal Solutions, KEM Investments in relation to the
affairs of Rascal Solutions.  Peter Kemble, a member of KEM Investments LLP,
continues as Managing Director of Rascal Solutions.


Mark Cashmore, Group Chief Executive, commented: 'Rascal Solutions has
successfully established itself in the provision of in-store news product
solutions for retailers with its innovative approach and software products.
Investing in this business is consistent with our overall strategy of improving
the service available to retailers and reducing waste in the supply chain.'



Enquiries:


Smiths News PLC
Kerrie Colford                Investor Relations       01793 563516

Brunswick Group LLP
Aideen Lee                    Media Relations          020 7404 5959


                      This information is provided by RNS
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