Acquisition

29 October 2007

Acquisition of UK HR/payroll solutions supplier


The Sage Group plc ("Sage"), a leading global supplier of business management
software solutions, today announces the acquisition of KCS Global Holdings
Limited ("KCS") from its shareholders for £20 million, paid in cash.

KCS is one of the UK's award-winning suppliers of personnel, payroll and time &
attendance solutions. The acquisition of KCS, combined with the acquisition
earlier this year of HR and payroll specialist Snowdrop, represents an
excellent opportunity for Sage to fulfil the growing need of SMEs for
specialist advice in HR and payroll with a full range of products. Combined,
Snowdrop and KCS deliver to Sage the people, domain knowledge and product set
to fully explore the numerous HR and Payroll opportunities available.

Paul Walker, Chief Executive of Sage, commented: "HR and payroll is an
important and growing sector of the business software market. This acquisition
represents an excellent opportunity for Sage to consolidate its position as one
of the leading suppliers in this sector and complements our acquisition of
Snowdrop earlier this year."


Enquiries: The Sage Group plc Tulchan Communications
Tel: [phone] Tel: + 44 (0) 20 7353 4200

Paul Walker, Chief Executive Stephen Malthouse Paul Harrison, Group Finance
Director

Cynthia Alers, Investor Relations Director

Notes to editors:

The Sage Group plc is a leading global supplier of business management software
solutions and related products and services, principally for small to
medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock
Exchange in 1989 and now employs over 13,000 people worldwide.

KCS is a leading supplier of Personnel, Payroll and Time & Attendance
solutions, available separately or as a fully integrated solution. Through
first class implementation and support services, KCS ensures a close match to
clients' expectations delivering real strategic benefits to a wide range of
customers, including Reg Vardy, Specsavers and Paul Smith.