Acquisition

Diagonal PLC
17 July 2001



                                 DIAGONAL PLC

      ACQUISITION OF CLARITAS INFORMATION SECURITY LIMITED FOR A MAXIMUM
                           CONSIDERATION OF £ 1.2 MN

                     EXPANSION OF SECURE NETWORKS DIVISION

17th July, 2001

DIAGONAL PLC, the IT consulting services company, announces today that it has
acquired Claritas Information Security Limited for a maximum consideration of £
1,161,730. Claritas is a leading provider of information security consultancy
services to a wide range of commercial and Government clients.

The initial consideration amounts to £747,730, of which £225,175 has been paid
in cash from the Group's own resources with the balance satisfied by the issue
of 300,318 new ordinary shares in DIAGONAL PLC. Additional consideration up to
a maximum of £276,000 will be paid, after completion, as to 30 % in cash and
70% by way of a further issue of new ordinary shares to reflect the net asset
value of Claritas. Deferred consideration is payable by way of a further issue
of new ordinary shares, subject to a maximum value of £138,000, depending on
the profitability of Claritas for the period ending on 30th November, 2001.

Neil O'Connor, Managing Director of Claritas, says:

'DIAGONAL PLC is one of the UK's leading consulting and security companies
offering an extensive range of IT services. At Claritas we now have increased
potential for sustained growth since we now have access to a larger market as
well as being able to offer a broader range of services. We are looking forward
to a challenging and successful future as part of the DIAGONAL group.'

Graham Creswick, Chief Executive of DIAGONAL, says:

'The acquisition of Claritas not only brings complementary skills and expertise
to the Secure Networks Division but also will expand further the customer base
and opportunities for this division. We welcome Claritas to the DIAGONAL
Group'.



Enquiries:

Graham Creswick, Chief Executive, DIAGONAL PLC
Alan Hunter, Finance Director

Tel: [phone]

Ian Seaton, Citigate Dewe Rogerson
Georgina Peiser

Tel: [phone]


Notes to Editors

DIAGONAL PLC provides a broad range of IT consulting services. The Consultancy
Division is one of the leading implementers of SAP systems. The Secure Networks
Division, formed last year with the amalgamation of three acquisitions,
provides network and remote access security.