Acquisition

Begbies Traynor Group PLC
03 May 2006



RNS Release

3 May 2006

                 Acquisition of two Middleton Partner practices
                                      and
                            Pre-Close Trading Update

Begbies Traynor Group plc ('Begbies Traynor' or 'the Group') (AIM: BEG), the 
UK's largest nationwide independent insolvency, corporate rescue and recovery
specialist, today announces the acquisition of the entire equity interests of
Mike Stevenson and Julie Palmer of Middleton Partners ('Middleton').

Middleton was established in 2002, many of its principals having previously
worked for national accountancy practice Smith & Williamson. Under the deal, the
Middleton offices in Salisbury and Southampton will trade as part of Begbies
Traynor and the total assets and staff of 16 employees will be transferred
immediately to the Group. Mike Stevenson and Julie Palmer will continue with the
business.

The Group will pay an initial consideration of £1 million on completion, and an
additional £500,000 to be satisfied three months later, which the Group has the
option to settle by issuing 274,725 shares in Begbies Traynor Group at £1.82
pence per share. Subject to Middleton's offices maintaining and improving
current profit levels over the next two years, Begbies Traynor will pay
additional cash considerations. In its last trading year, Middleton achieved
fees in the region of £1.75 million.

By acquiring Middleton's Southampton and Salisbury businesses, the Group will
enhance its presence in the South and South West of England. Middleton's
Southampton and Salisbury offices are profitable and have been enjoying year on
year turnover growth. They will immediately be rebranded as part of the Begbies
Traynor Group. By joining the Group, the local practitioners will have the
opportunity to work on larger, more technically challenging cases that are only
accessible via referrals from high street banks.

Begbies Traynor plans to continue its expansion strategy of growth via
additional acquisitions and further organic expansion. Its stated strategic goal
is commanding a 10% share of the available market in corporate insolvency work.

Pre-Close Trading Update

The Group has made good progress and is on course to deliver further growth in
line with current market expectations. Results for the year ended 30 April 2006
are expected to be announced in July.

Ric Traynor, Executive Chairman of Begbies Traynor, comments:

'We are pleased to welcome Mike and Julie and their colleagues to Begbies
Traynor. We were very keen to increase our presence in the South and South West
and are delighted that we now can offer clients the full range of services from
our new offices in Southampton and Salisbury.'

Enquiries, please contact:

Ric Traynor                         Neil Boom/David Pettet
Executive Chairman                  Gresham PR Ltd.
Begbies Traynor Group plc           020 7404 9000
0161 839 0900

Mike Sawbridge
Director of Corporate Finance
Shore Capital Stockbrokers Limited
0151 600 3722






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