Acquisition

Tribal Group PLC 1 November 2001 Tribal Group plc ('Tribal Group' or the 'Company) Acquisition of Cambridge Training and Development Limited ('CTAD') Tribal Group is pleased to announce the acquisition of 100 per cent. of the issued share capital of CTAD. CTAD is a leading e-learning consultancy and content developer in the areas of professional development, basic skills and post-16 education. It publishes e-learning products and delivers consultancy and multi-media content under contract to public sector bodies, including the Department for Education and Skills (through the Adult Basic Skills Strategy Unit), Learning and Skills Councils, the Basic Skills Agency, the Qualifications and Curriculum Agency, the Learning and Skills Development Agency, the University for Industry and the National Institute for Adult and Continuing Education. In the year ended 31 March 2001, CTAD achieved an operating profit of £382,000 on turnover of £3,458,000. CTAD is currently experiencing strong demand for its products and services and operating profit in the six months ended 30 September 2001 was ahead of the comparable period last year. The initial consideration of £4,237,968 (which includes the acquisition of cash balances of £767,187) is to be satisfied by: - the issue of 190,366 ordinary shares of 5p each in Tribal Group ('New Tribal Group Shares'); - £2,530,150 in bank guaranteed loan notes; and - £1,171,929 in cash. Further consideration of up to £0.5 million will be paid, based on the performance of CTAD in the two years ending 31 March 2003. For every £1 by which the average audited operating profit for the two years ending 31 March 2003 exceeds £600,000, Tribal Group will pay £4. The deferred consideration will be satisfied by the issue of new Tribal Group shares or, at Tribal Group's option, bank guaranteed 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 7 November 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: 'We have been working with CTAD for some time, and have been impressed by their strong position in the adult basic skills market and excellent contractual relationships. Their e-learning products are performing particularly well, and one has recently been nominated for a major international award. This acquisition further strengthens our position in the education market, and will help us to increase our presence in basic skills. This is an important area; Skills for Life, the Government's basic skills strategy, has a budget of £1.5bn over the next three years. We have already seen significant opportunities for joint working with other group companies and we expect CTAD's growth to be accelerated by these cross selling opportunities.' For further information contact: Henry Pitman, Chief Executive Tribal Group plc 01386 702900 Nicholas Naylor Granville Baird 020 7488 1212 ENDS

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Tribal Group (TRB)
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