Acquisitions

23 May 2006

Sage acquisition of majority shareholding in UBS and acquisition of Chinese 
distributor

The Sage Group plc ("Sage") has agreed to acquire 50.2% of the share capital of
UBS Corporation Berhad ("UBS"), the leading vendor of business management
software for SMEs in Malaysia, listed on the Malaysian Stock Exchange. Sage
purchased the shares for a price of 0.98 Ringgit per share. The purchase
consideration for these shares is approximately £7m, to be paid in cash.

As a result of this transaction, and as required by Malaysian regulations, Sage
will make an offer to the remaining UBS shareholders to acquire all outstanding
shares, for the same price of 0.98 Ringgit per share. Details of this offer are
set out in a Notice of Mandatory Offer announced by UBS.

With over 100,000 customers, UBS is the leading vendor of business management
software for small and medium-sized businesses in Malaysia. UBS revenues for
the year ended 31 December 2005 were approximately £1.9 million* (2004: £1.7
million*). Earnings before depreciation and amortisation were approximately £
0.9 million* (2004: £0.7m*).

In addition, on 16 May 2006, Sage acquired a Chinese Sage distributor
comprising SWA Ltd. and Huatuo Software Ltd., for a small, undisclosed
consideration. This business, based in Shanghai, resells and implements Sage's
Chinese software products, ACCPAC and Adonix.

Paul Walker, Sage Chief Executive, comments, "The acquisition of a controlling
interest in UBS, and of distribution capability in China, together represent
important early steps in our development of Sage businesses in the Asian
region. These businesses bring important local expertise and deep knowledge of
the requirements of Asian SMEs. We see significant potential to build on these
acquisitions whilst increasing our knowledge of the Asian business software
markets."

*Financial information calculated on the basis of £1 = 6.84 Ringgit (Malaysia).

Enquiries

The Sage Group plc [phone]

Paul Walker, Chief Executive

Paul Harrison, Finance Director

Phil Branston, Investor Relations

Tulchan [phone]

Julie Foster

Kirstie Hamilton