Disposal

Flomerics Group PLC
20 December 2007


Embargoed until 7am                                             20 December 2007


                              Flomerics Group PLC

                                   Divestment


Flomerics Group PLC ("Flomerics" or "the Company"), the global supplier of
simulation software to the engineering and electronics industries, is pleased to
announce that it is divesting its electromagnetics line of business ("the EM
Business"), in order to increase its focus on areas where the Company has much
better opportunities for growth. The EM Business is being sold to Computer
Simulation Technology GmbH ("CST") with effect from 1 January 2008 for a cash
consideration of £1.6 million, subject to the financial results of the EM
Business for the year ended 31 December 2007 and other normal terms and
conditions.


Since entering the electromagnetics simulation market in 1999, Flomerics has
built up the usage of its MicroStripes and FLO/EMC products around the world.
However, the Company still has only a small share of the market and the
directors have concluded that it would be difficult for Flomerics on its own to
achieve a strong competitive position in this field. The sale of the EM Business
to CST, a company that specialises in electromagnetics simulation, signals the
beginning of a strategic relationship. Customers will be able to benefit from
using a combination of world-leading products from the two companies.


Following the sale of the EM Business, Flomerics will have a greater focus on
fluid flow simulation. The directors believe this will enable it to maintain a
strong competitive position in the area of electronics cooling, where the
Company is world leader, and to take better advantage of the EFD products
acquired through Nika, which are applicable to wider applications of fluid flow
simulation. Sales of the EFD product range have been growing strongly and there
is the opportunity for them to make a significant contribution to the future of
the business. The proceeds of the disposal will be used to enhance the Company's
position for future growth in our core business areas.


In the six months ended 30 June 2007, the EM Business contributed £0.9 million
to turnover and approximately £0.1 million to profit before tax (pre allocation
of overhead). As at 30 June 2007 the Company had an intangible asset of £0.2
million relating to the EM business and a deferred revenue credit of
approximately £0.4 million. The Company will pay to CST an amount of £0.25
million to fulfill its maintenance obligations relating to the deferred revenue
credit. It is expected that the divestiture will lead to some reduction in
earnings per share in the short term until the benefits of the greater focus are
realised. The directors plan to issue a trading statement in early January 2008,
which will give guidance on the results for 2007 and the prospects for 2008.


Commenting on the announcement, Gary Carter, Chief Executive of Flomerics, said:

"I believe that the increased focus on the fluid flow simulation and electronics
cooling business will benefit our customers and investors alike. At the same
time, we are delighted to have found a partner in CST with a commitment to the
continuation of providing the best tools in the business for electromagnetics
simulation and I am confident that our customers will see significant benefits
from the focus they have on this industry."


Commenting on the announcement, Bernhard Wagner, Managing Director of CST said:

"The acquisition of the Flomerics EM business line and its TLM technology
follows CST's strategy of providing the most complete technological offering for
the high frequency EM market. We will ensure a high level of continuity for all
users of the MicroStripes and FLO/EMC products and are looking forward work
closely with all customers."


For further information please contact:


Gary Carter                                               020 8487 3000

Flomerics Group PLC



Christian Taylor-Wilkinson/Charlie Geller                 020 7429 6666

Conduit PR



Andrew Edwards                                            020 7710 7600

Oriel Securities Limited (Nominated Adviser)



About Flomerics


Flomerics (www.flomerics.com) is a world-leading developer of engineering
simulation software and services for analysis of fluid flow, heat transfer.
Flomerics' business model is drastically different from traditional analysis
because its software is designed to be embedded deeply into the design process
and used by mainstream design engineers, not just by analysis specialists.

About CST

CST (www.cst.com) develops and markets software for the simulation of
electromagnetic fields in all frequency bands. Its success is based on the
implementation of unique, leading edge technology in a user-friendly interface.
CST's customers operate in industries as diverse as Telecommunications, Defence,
Automotive, Electronics, and Medical Equipment, and include market leaders such
as IBM, Intel, Mitsubishi, Samsung, and Siemens. With 130 employees worldwide
and a network of qualified distributors, over 170 people are dedicated to the
development and support of its EM products in more than 30 countries.



                      This information is provided by RNS
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