Acquisition of Edward Roscoe Associates

Capita Group PLC 15 December 1999 Acquisition of Edward Roscoe Associates The Capita Group Plc ('Capita') has today announced the acquisition of a leading telecoms engineering consultancy business, Edward Roscoe Associates (ERA) for an initial consideration of £5 million. Founded 25 years ago, it was an early entrant to the mobile telecoms market and has established relationships with many of the leading operators including Cellnet, Orange and Ericsson. ERA specialises in surveying and advising companies on establishing their networks in UK and Europe and oversees the installation of transmitting equipment and the management of mobile phone coverage and voice and data quality. It is well placed to take advantage of the rapid increase in mobile phone coverage throughout the UK and Europe. Its clients for traditional engineering consultancy services include many significant private sector companies including Sainsburys, B&Q, MFI and Manchester United Football Club. ERA, which employs 146 staff in the United Kingdom and Europe, had revenues of £7.9 million in the year to 30 April 1999 and generated profit before tax, but after partners renumeration, of £39,000. Net assets at year end were £334,584. Principal offices are situated in London, Manchester and Edinburgh. The purchase consideration of £5 million is to be satisfied by the payment of £1 million in cash, the issue of 225,469 new ordinary shares in Capita ('the consideration shares') and £1.5 million in loan notes. A further consideration of up to £3.5 million will be paid on 31 March 2002 based on specific performance criteria. Rod Aldridge, Executive Chairman of Capita commented: 'The acquisition of Edward Roscoe Associates provides us with an excellent route into the burgeoning mobile telecoms industry. ERA is a market leader which will enable us to offer our wider portfolio of managed services into this sector. It also enhances our broad property services offering'. The consideration shares will be issued and credited as fully paid and will rank pari passu in all respects with Capita's existing ordinary shares. Application has been made to the London Stock Exchange for these shares to be admitted to the Official List and this is expected to take place on 16 December 1999. For further information: The Capita Group Plc 0171 799 1525 Rod Aldridge, Executive Chairman Paul Pindar, Chief Executive Shona Nichols, Group Marketing Director Issued by 0171 357 9477 Hogarth Partnership, John Olsen / James Longfield Notes to Editors: The Capita Group Plc is one of the largest and fastest growing professional support organisations in the UK. The Group delivers a range of integrated solutions, encompassing customer, administration and human resources services, IT, Consultancy and property services to both public and private organisations. With over 7,000 people operating from some 100 UK sites, Capita is quoted on the London Stock Exchange and is a FTSE 250 company with a market capitalisation of over £2.3 billion. For further information, please visit the Group's website - www.capitagroup.co.uk.

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