Acquisition

Focus Solutions Group PLC 30 April 2002 30 April 2002 Focus Solutions Group plc acquires North American partner, MPO Focus Solutions Group plc, ("Focus", "the Company"), a specialist in sales automation solutions for the financial services industry, today announces the acquisition of its North American partner, MPO Group Inc, ("MPO"), a US based e-business solutions company. Like Focus, MPO specialises in delivering solutions that automate the sales process for insurance companies, helping to capture and underwrite policies. MPO's solutions are based on Focus's XML based toolkit, goal:technology. The initial consideration is £726,502 ($1,053,000) of which £451,777 ($653,000) is payable in cash and the remaining £274,725 ($400,000) by the allocation of 549,449 ordinary shares in the Company, which are subject to a two year lock-in. In addition, deferred consideration of up to £3.5million, is payable in ordinary shares following the announcement of results for years ending 31st March 2003, 2004, 2005, on the achievement of certain performance related targets for those financial periods. Focus has the option to pay up to 50% of the deferred consideration in cash. Focus believes there are significant opportunities open to the Company in North America. By acquiring MPO at this early stage in its development, the Directors believe that MPO's growth will generate substantial value for Focus shareholders. The business is being acquired from the MPO founders who have been contracted to stay with the business for a minimum of 3 years after the acquisition. MPO reported losses of $713,000, for the period 28th September 2000 to 28th February 2002 and net labilities of $60,000 and borrowings of $150,000 at 28th February 2002. Borrowings and losses are expected to increase by no more than $50,000 and $100,000 respectively by completion. It is expected that the acquisition will be earnings neutral in the year ending March 2003 and earnings enhancing from the year ending March 2004, before the amortisation of goodwill. John Streets, Chief Executive of Focus, said: "This acquisition will enable us to participate fully in the development of this major opportunity in the North American life insurance market. It gives access to the experience and expertise of our US partners, who have extended and enhanced the benefits our technology can deliver. Taking this step at an early stage in the product lifecycle will significantly increase our earnings potential from its future development." Tom McCahill, Chief Executive of MPO, added: " We have already benefited from our work with the Focus innovation teams. Now solutions based on goal:technology can be deployed from a highly motivated, combined force. This is just the first step in jointly applying our in-depth market knowledge to leading edge technology. I am highly enthusiastic about our combined ability to deliver value." For further information, please contact: Focus Solutions Group plc 01926 468 300 John Streets Claire Forrest Citigate Dewe Rogerson 020 7638 9571 Chris Barrie Sara Batchelor Notes to editors MPO was founded in 2000, and is managed by 3 entrepreneurs with extensive experience of the North American life insurance industry. In May 2001, MPO signed a partnership with Focus to develop and market solutions for the North American life industry using Focus's core technology. MPO's first solution, eAppCapture, was launched in November 2001. The processing of new business applications for insurance in North America is still largely paper- based and each state has differing legislative requirements. eAppCapture enables North American insurance carriers to capture the complex data required to process and complete transactions electronically, utilising the industry standards set by ACORD, the international standards body. In April 2002 , MPO formed a strategic alliance with Milliman USA, a leading actuarial practise, with 1750 staff based in the US and the Pacific Rim. MPO has integrated eAppCapture with FAST, Milliman's policy administration system, automating the new business sales process for insurance products from application through to administration, including electronic policy capture, underwriting, issue and fulfilment. In addition, MPO has signed a strategic alliance partnership with e-Nable, the portal for MIB Group, Inc. MIB is an association owned by the leading North American life carriers which provides a fraud prevention information service for the North American life insurance industry. MPO has integrated eAppCapture with e-Nable's internet- based interface to MIB, automating the capture and validation of the medical and non-medical underwriting data required to improve risk assessment. Previously, the MPO founders had been major shareholders in the ECTA Corporation, a company that developed and marketed an insurance quotation and tax calculation system . Originally founded by Tom McCahill, the CEO of MPO, ECTA's customers included 40 of the largest insurance carriers in the US prior to its sale in 1998. This information is provided by RNS The company news service from the London Stock Exchange
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