Acquisition

8 August 2006

Sage to acquire Emdeon Practice Services, a provider of software and services
to doctors and small clinics in the US

The Sage Group plc ("Sage") is to acquire Emdeon Practice Services, Inc.
("EPS"), based in the US in Tampa, Florida, from its parent company Emdeon
Corporation, for an enterprise value of approximately £297 million*, to be paid
in cash and financed through Sage's existing credit facilities. The acquisition
is expected to complete in September, subject to regulatory approvals.

EPS revenue for the year ended 31 December 2005 was approximately £160.3
million* (2004: £155.8 million*). Earnings before interest, tax, depreciation
and amortisation were approximately £11.4 million*^ (2004: £3.7 million*^). EPS
had gross assets of approximately £37 million* as at 31 December 2005.

With 20,000 customers, EPS is a leading vendor of software and services for
doctors' practices in the US, most of which are small or medium-sized
businesses. EPS software is used in practice management and in the maintenance
of patient data. This includes administrative and financial processes such as
appointment scheduling, prescriptions and billing, together with the creation
and management of electronic health records.

EPS support services include software maintenance and, additionally, access to
electronic medical transaction services such as those facilitating claims to
healthcare insure rs.

The market for doctors' practice management software has potential for
significant expansion. There are over 200,000 doctors' practices in the US and
many are seeking to automate their businesses, in order both to increase
efficiency and to ensure compliance with regulations governing electronic
health records, healthcare insurance claims and medical care documentation.
Users of practice management software exhibit high demand for support services.

Revenue growth is expected to result from increasing use of software to
automate doctors' practices, from higher adoption of electronic health records
software compared with the current low levels of adoption and from the
extension of support and network services. Sage's expertise will be used to
improve sales and marketing of additional products to EPS customers and to
maximise retention and productivity in customer support operations.

Additional revenue opportunities will arise from cross-selling of Sage accounts
software to EPS customers and vice-versa, facilitated by progressive
integration between accounting and practice management. Customer research on
the 7,000 doctors' practices in Sage's US customer base has shown a clear
demand for practice management software and for its integration with accounting
software. There are also opportunities to raise operating margins through the
application of Sage's customer base marketing and support expertise, and
through administrative synergies.

Paul Walker, Sage Chief Executive, commented, "Acquiring Emdeon Practice
Services enables Sage to market its products and services to a substantial new
community of small and medium-sized businesses in the US. This market is
showing clear demand for automation of business processes. This acquisition
continues our strategy of providing industry-specific solutions, by bringing
dedicated Sage solutions to this business sector for the first time.

The growing doctors' practices market provides opportunities to offer an
integrated Sage solution to both new and existing Sage customers in the US,
covering accounting, health records and practice management. Emdeon Practice
Services will now form the basis for a new doctors' practices division, which
we aim to grow both organically and through further acquisitions."

* All financial information calculated on the basis of £1 = $1.90.

^ EPS reported adjusted EBITDA and an estimated allocation of Emdeon
Corporation's central costs.

A conference call for analysts to discuss this announcement will be held at
8.30am today. The dial-in number is [phone] (pin code 129 844).
Presentation material, to be referred to during the call, will be available at 
www.sage.com/investors/eps from 8:15am.

Enquiries

The Sage Group plc [phone]

Paul Walker, Chief Executive

Paul Harrison, Finance Director

Phil Branston, Investor Relations

Tulchan [phone]

Julie Foster [phone]

Kirstie Hamilton +44

Notes to editors

The Sage Group plc is a leading international supplier of accounting and
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 the Group now employs over
10,000 people worldwide.