Acquisition

System C Healthcare plc
03 July 2007


         System C Healthcare PLC expands into private healthcare sector
                                                                                
                     Acquisition of IQ Systems Services Ltd


System C Healthcare PLC ("System C") (AIM:SYS), the provider of specialist IT
products and services to the healthcare sector announces a significant strategic
step into the private healthcare market with the acquisition of IQ Systems
Services Ltd ("IQ") for a maximum consideration of £2.16m.

IQ is a leading supplier of patient management and clinical software solutions
for private treatment centres and hospitals. Its IQUtopia product is highly
regarded in the private healthcare marketplace and has been deployed at a number
of the most prestigious private sector treatment centres in the country
including Sussex Orthopaedic NHS Treatment Centre, Will Adams NHS Treatment
Centre (Gillingham), St Marys NHS Treatment Centre (Portsmouth), Midlands NHS
Treatment Centre (Burton) and Eccleshill NHS Treatment Centre (Bradford) amongst
others. IQUtopia complements System C's MedWay Patient Administration and
Electronic Patient Record (EPR) software, which is typically deployed into
larger NHS Acute Trusts.

The acquisition of IQ accelerates System C's expansion into the private
healthcare market as well as strengthening its product portfolio. IQ's customers
include a number of major private healthcare providers including Mercury
Healthcare (acquired by Care UK in April 2007), Centres of Clinical Excellence
("CCE") and Nations Healthcare (acquired by CCE in June 2007).

The consideration for the acquisition is £0.8m in cash on completion, with up to
a further £1.36m payable in a mixture of cash and shares over the next 2 years
dependent on the achievement of performance targets. The cash element of the
consideration is to be funded from the Group's existing resources. In the year
to 31 December 2006, IQ reported turnover of £0.9m, normalised PBT of £0.15m
and, as at 31 December 2006, had Gross assets of £0.25m. The board expects the
acquisition to be earnings enhancing from day one. (1)

System C's Chief Executive, Ian Denley, commented:

"We are delighted that IQ has chosen to become a fully integrated part of the
System C business. We believe that the role of the private sector in most major
health economies will be become increasingly important over the medium term, and
with its significant customers and an established and well thought of product,
the acquisition of IQ enables System C to expand directly into the private
healthcare provider market.

We will work closely with IQ to enhance IQUtopia, strengthen the professional
services available to IQ customers, and further expand the strategic
relationship with their clients."

John Wyatt Barton, Co-director of IQ, highlighted the product and services
synergies between the companies:

"Working with System C will open up many new opportunities for us. Their
professional services capability and their scale are just what our clients have
been asking for and they have key products which complement IQUtopia.

There is a tremendous cultural fit between the two companies and we look forward
to working in close collaboration to meet the exciting new opportunities ahead."


                                      ENDS                                      


For further information, please contact:

System C Healthcare plc     Dr Ian Denley, Chief Executive
                            Markus Bolton, Founding Director  Tel: [phone]

Maitland                    Emma Burdett/Richard Farnsworth   Tel: [phone]

Collins Stewart Europe Ltd  Chris Wells/Mark Connelly         Tel: [phone]


Notes to editors:

System C Healthcare plc (www.systemc.com), established in 1983, specialises in
the provision of information systems and solutions to the healthcare sector. Its
staff have an average of 15 years' healthcare experience and can provide all
aspects of systems design, development and deployment services. System C is
founded upon the belief that IT solutions, when effectively implemented, can
significantly contribute towards improving patient care.

System C is a specialist developer and supplier of Patient Administration and
Electronic Patient Record Systems to the health service. The company's MedWay
product is successfully installed at a number of NHS hospitals including
University Hospitals Aintree, Swindon and Marlborough NHS Trust, Tameside
Hospitals NHS Trust and the Christie, one of the UK's leading cancer hospitals.
System C has recently won a £7.5m contract to supply MedWay to the Isle of Man
Government.

System C has helped to install healthcare systems at over 130 NHS Trusts and
offers a wide range of services to Local Service Providers, the NHS and
third-party suppliers. These include programme/project/change management,
design, build and test, implementation, training, data migration, interfacing
and helpdesk/support services.  Within the National Programme for IT (NPfIT),
System C people have been involved in the majority of secondary care go-lives to
date as well as many GP, community, Single Assessment Programme and child health
deployments.


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(1) This statement should not be interpreted as a profit forecast and does not
mean that the future earnings per share of System C, following completion of the
acquisition of IQ, would necessarily match or exceed the historical earnings per
share of System C.




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