Acquisition

Tribal Group PLC 21 August 2001 Tribal Group plc ('Tribal Group' or the 'Company') Acquisition of GWT Group Limited (the 'GWT Group') Tribal Group is pleased to announce the acquisition of the GWT Group. The Company has acquired 85 per cent. of the issued share capital of the GWT Group, with the balance of 15 per cent. being retained by the GWT Group management. Since its inception in 1998 the GWT Group has grown rapidly to become a leading supplier of consultancy services to the local government sector. It currently operates in three principal areas: recruitment advertising and communication services; search and selection services for senior management appointments; and employment consultancy services. In the past twelve months, the GWT Group has worked with over 100 local authorities. 75% of the GWT Group's revenue is secured on long-term contracts. In the year ended 31 July 2000, the GWT Group achieved an operating profit of £360,000 on turnover of £1,386,000. The net assets were £112,000 as at 31 July 2000. On the basis of the audited accounts for the 11 months ended 30 June 2001 and the management accounts for July 2001, the GWT Group achieved an operating profit of £870,000 on turnover of £3,330,000 for the year ended 31 July 2001. The initial consideration of £4,894,146 is to be satisfied by: - the issue of 138,820 ordinary shares of 5p each in Tribal Group ('New Tribal Group Shares') - £4,154,196 in bank guaranteed loan notes; and - £339,950 in cash. The initial consideration includes the acquisition of cash balances held by the GWT Group of £168,112. Further consideration will be paid based on the audited accounts of the GWT Group for the year ended 31 July 2001: for every £1 by which the audited operating profit exceeds £820,000, Tribal Group will pay £5.60. Any such deferred consideration will be satisfied by the issue of further loan notes. Application has been made for admission of the New Tribal Group Shares to trading on the Alternative Investment Market of the London Stock Exchange ('AIM'). It is expected that the New Tribal Group Shares will commence trading on AIM on 22 August 2001. The New Tribal Group Shares will rank pari passu in all respects with the existing ordinary shares of the Company. Commenting on the announcement, Henry Pitman, Chief Executive of Tribal Group, said: 'GWT Group has an impressive trading history, and an excellent public sector customer base, and we are delighted that they are joining Tribal Group. This acquisition further strengthens our position in the Local Authority sector and enhances our human resource and communication capacity. We anticipate further acceleration of its growth as a result of its joining Tribal Group. There are significant opportunities for the expansion of its services into the health sector and central government and into related areas such as interim management and human resource outsourcing. For further information contact: Henry Pitman, Chief Executive - Tribal Group plc - 01386 702 900 END

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Tribal Group (TRB)
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