Re: Acquisition

24 October 2003

Sage acquires Spanish accounting software vendor Grupo SP

The Sage Group plc ('Sage') announces that it has acquired Grupo SP, S.A.*
('SP'), a leading provider of entry-level accounting software in Spain, for an
enterprise value of £49.1m, to be paid in cash. SP had net cash of £6.6m upon
acquisition, giving an equity value of £55.7m for the transaction.

SP's revenue for the year ended 31 December 2002 was £22.8m, with an operating
profit of £4.4m.

SP brings over 200,000 customers into the Sage customer base, establishing a
leading position for Sage in a market featuring one of the largest populations
of small businesses in Europe.

Paul Walker, Sage Chief Executive, commented: 'The acquisition extends our
geographical presence to the strategically important Spanish market in which SP
is well established. Its leading product brands and sizeable customer base
provide a sound platform from which we can develop our presence in Spain. The
acquisition is a significant step forward in our strategy of expanding into
attractive new markets where Sage's business model and expertise can add
value.'

*This transaction excludes the small South American operations of Grupo SP; the
operational results and balance sheet items of which are hence excluded from
this announcement.

All financial information calculated on the basis of £1 = Euro 1.435

Enquiries:

The Sage Group plc 0191 255 3000     Financial Dynamics 020 7831 3113       
                                                                            
Paul Walker, Chief Executive         Giles Sanderson                        
                                                                            
Paul Harrison, Finance Director      Harriet Keen                           
                                                                            
Phil Branston, Investor Relations    Caroline Ledosquet                     

Notes to editors:

The Sage Group plc is a leading international supplier of accounting and
business management software solutions and related products and services for
small to medium-sized enterprises. Formed in 1981, Sage was floated on the
London Stock Exchange in 1989 and the Group now employs over 5,500 people
worldwide.