Acquisition

Begbies Traynor Group PLC
02 August 2005



RNS Release

2 August 2005
                           Begbies Traynor Group plc
                     Acquisition of Taylor, Gotham and Fry

Begbies Traynor Group plc ('BTG' or 'the Group') (AIM: BEG), the UK's largest
independent firm of business rescue and restructuring specialists, today
announces its largest acquisition since listing on AIM in October 2004. It has
acquired Essex-based Taylor, Gotham and Fry ('TGF'), an unincorporated firm
specialising in insolvency services, with offices in Essex, Kent and the West
End of London.

The transaction involves the purchase of the goodwill and tangible trading
assets of TGF. The consideration comprises a cash payment of £3 million on
completion plus a deferred consideration, estimated at £3.5 million over five
years (to be paid as two thirds in cash and one third in BTG shares),
conditional on the achievement of specific fee realisations. Tangible fixed
assets and work in progress are valued at approximately £300,000 with the
balance of the consideration representing directly acquired goodwill.

BTG announced on 15 July 2005 the placing of 6,200,000 Ordinary Shares of five
pence each at £1 per share, raising £6 million after expenses. The funds raised
will be partly used in paying the above initial consideration and the balance
will fund the continued planned expansion of the Group.

TGF has a similar mix of business and personal insolvency activities to BTG,
with six appointment takers, 20 fee earning staff and 13 (full time equivalent)
in support. Its unaudited accounts for the year to 31 March 2005 reported
turnover of £3.5 million. TGF has an existing association with BTG, in that it
already uses the Group's brand name and administrative systems, for which it
pays BTG a royalty fee. After allowing for that fee and the proposed ongoing
remuneration of its principals, the operating profit of TGF for the year to 31
March 2005 was £1.1 million.

The activities of TGF will be combined with BTG's South Eastern regional
subsidiary operation, although TGF will continue to trade from its existing
offices. The two controlling principals in TGF will continue with BTG and take
an active role in the management of the whole of the Group's operations in the
South Eastern region.

BTG's purchase of TGF is its fourth acquisition since listing on AIM in October
2004. It is the Group's aim to grow its market share in insolvency services to
10% by 2007 through continued organic growth and further acquisitions and to
develop further ancillary activities.

This acquisition should be immediately earnings enhancing and has the strategic
benefit of increasing the Group's activity base in the South East to a level
commensurate with the economic importance of that region, whilst also
introducing a dynamic and entrepreneurial additional management team to that
operation(1).

(1)This statement should not be taken to mean that the earnings per share of the
Group will necessarily match or exceed the historical reported earnings per
share of the Group and no forecast is intended or implied.

Ric Traynor, Executive Chairman of Begbies Traynor Group, comments:

'We're delighted to welcome Taylor, Gotham and Fry as a full member of Begbies
Traynor Group. The skills and energy of Mark Fry and Jamie Taylor and their
partners and staff will be invaluable in the continuing development of our
presence in the key South Eastern region, providing a platform for significant
organic growth.'

Enquiries, please contact:

Andrew Dick                         Neil Boom/Rosemary Acfield
Chief Operating Officer             Gresham PR Ltd.
Begbies Traynor Group plc           020 7404 9000
020 7398 3800

Notes to Editors

About Begbies Traynor Group plc

The Group specialises in business insolvency management and is becoming
increasingly active in the area of personal insolvency. It also offers services
in corporate rescue and forensic investigation and has entered the field of
corporate finance through the acquisition of MCF Corporate Finance. In addition,
the Group recently acquired FDB International, an established commercial
investigation and security agency.

The Group has grown to its current network of 29 nationwide offices ranging from
Scotland to the South West of England, with over 300 operatives. The Company
intends to pursue a strategy of organic development, coupled with the
acquisition of specialist knowledge of both individuals and firms, to further
increase its market share in its core services.

The Directors believe that the Group is the UK's largest independent insolvency,
corporate rescue and recovery specialist with clients ranging from major
institutions to individuals with business difficulties.

The Office Network

The Group operates with 65 licensed insolvency appointment takers, some 175 fee
earning staff and 68 in support and administration. The Group operates from 29
locations of which five are regional offices, a further eleven are full offices
and thirteen are satellites.

Business Activities

The core business of the Group is the formal administration of insolvencies
including receiverships, liquidations, administrations, company voluntary
arrangements and business-related personal insolvencies. The Group has extended
its activities into a range of consultancy services including corporate rescue,
credit management, forensic and investigation services and corporate finance.



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