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.

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