Acquisition(s)

17 July 2003

The Sage Group announces agreement to acquire US business management software
vendor Timberline 

The Sage Group plc ('Sage') announces that it has agreed to acquire
NASDAQ-listed Timberline Software Corporation ('Timberline'), based in Oregon,
US.

Timberline shareholders will receive $8.25 per share, a premium of 33.3% to the
closing share price of Timberline on 16 July 2003.  Timberline has net cash of
£6.8m giving an enterprise value of £57.1m and an equity value of £63.9m for
the transaction.  The acquisition consideration, to be paid in cash, will be
financed using Sage's existing debt facilities and cash balances.  The
acquisition is subject to approval by Timberline shareholders as well as
regulatory clearances and is expected to complete by mid-September 2003.

With over 20,000 active customers, primarily in the US, Timberline is a leading
provider of accounting, estimating and business management software for small
to medium-sized businesses in the construction and real estate industries.  As
in the Sage business model, Timberline uses a distribution channel of resellers
complemented by direct sales.

The proposed acquisition of Timberline is consistent with the Sage strategy of
expanding its products and services to meet the industry-specific requirements
of its customers.  Upon completion of the acquisition, Timberline will become
part of Sage's US business, Best Software, and will expand Best's product range
into the US construction and real estate industries.  Timberline's products
will provide a natural migration path for those Best customers seeking to
replace their existing software with an industry-specific software solution. 
In addition, Timberline's customers will benefit from Best's range of products
and services.

Timberline Chief Executive Curtis Peltz, commented 'We look forward to becoming
part of Sage.  Sage and Timberline have very similar market strategies, as well
as a shared focus on providing excellent service to customers.  We believe our
customers, employees and business partners will realise significant benefits
from the merger of our two companies.'

Timberline's revenue for the year ended 31 December 2002 was £38.4m with an
operating profit of £1.3 million.  As in the Sage business model, there is a
focus on maintenance and service revenues: these contributed 53% of the year's
revenue.  At 31 December 2002, Timberline had net assets of £15.7m.

Commenting on today's announcement, Paul Walker, Chief Executive, said: 'The
acquisition of Timberline fits with our strategy of acquiring locally developed
and locally supported market-leading software brands.  Timberline will expand
our business into two significant vertical markets: construction and real
estate.  We expect to create value through selling Timberline's products to our
large and growing US customer base, and also through selling additional Sage
products and services to Timberline customers.'

All financial information calculated on the basis of £1 = $1.61

Enquiries

The Sage Group plc           +44 (0)    Financial Dynamics         +44 (0) 20
191 255 3000                            7831 3113                            
                                                                             
Paul Walker, Chief Executive            Giles Sanderson                      
                                                                             
Paul Harrison, Finance Director         Harriet Keen                         
                                                                             

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.