Press Release - IRIS Software

HG Capital Trust PLC
07 July 2004


The following is the text of a press release issued by HgCapital, manager of the
investment portfolio of HgCapital Trust plc.  The Trust participates in all of
HgCapital's investments.  Its holding in IRIS Software cost £6.6 million.





               'HgCapital funds £102 million MBO of IRIS Software

London, 07 July 2004.   HgCapital, a leading sector-focused European mid-market
private equity investor, has funded the £102 million management buy-out of IRIS
Software.

Shareholders in IRIS, the UK's leading provider of financial, practice
management and tax software to accountancy practices, have completed the buy-out
to support the next stage of the company's rapid growth strategy.  HgCapital is
taking a 62 per cent stake in IRIS and LDC, the private equity arm of Lloyds TSB
Group, has re-invested £8 million for 12 per cent of the company's equity.  LDC
will sell its shareholding in the company for £48 million.  It acquired its
stake for £8 million when it backed the original £33 million buy-out in October
2000.

IRIS has contracts with c.8,000 of the UK's accountancy practices (over 40 per
cent) and 20,000 small businesses, which use the company's software to fulfil
tax, accounts, time recording, book-keeping and payroll needs.  IRIS' products
and customer service are consistently ranked ahead of its competitors in
independent surveys: in 2000, 2001 and 2002 it was rated the leading software
product by the Institute of Chartered Accountants in England and Wales'
independent survey of c.700 practices.

Nic Humphries, partner and head of technology investment at HgCapital, led the
investment with support from fellow director, Leo Dee, and colleague, Richard
Donner.  HgCapital was advised by Altium Capital.  Humphries said: 'IRIS is an
example of a world-class UK software company.  It has produced strong growth by
delivering a high-quality product and exceptional customer service.  HgCapital's
technology team has been researching the business software market for some time
and we believe that there is potential for significant growth in the UK.  We see
excellent opportunities for organic growth supplemented by complementary
acquisitions in this sector.

'This is HgCapital's third technology buy-out in the last fourteen months,
cementing our position as the leading technology buy-out investor in Europe.  We
are delighted to close another £100 million plus investment only a week after
Xyratex, a buy-out that we led in September 2003, announced a $400 million
NASDAQ IPO.  Our success is based on our deep technology sector expertise and on
our reputation for building strong partnerships with successful management
teams.'

Patrick Sellers, deputy managing director of LDC, said: 'IRIS has been an
excellent investment for LDC and this deal signals growing confidence in the IT
and software sector. The company has an excellent management team and now has a
leadership position in practice software and a firm foothold in the supply of
business software to the SME market.'

IRIS group chief executive Martin Leuw, who led the management buy-out, said: '
This deal is excellent news for employees and customers. It supports our
ambition to be the number one choice of business software for UK accountancy
practices and SMEs and we are delighted to have the backing of HgCapital and LDC
to support the next phase of our growth.'


                                   -  ENDS  -


For further information contact:

Nic Humphries, Director, HgCapital             [phone]
[e-mail]

David Bick                                     [phone]
Holborn



Note to editors:

HgCapital invests in six sectors: consumer, healthcare, industrials, leisure,
media and technology.  Each sector is served by a dedicated team of investors.

HgCapital is a leading investor in the European private equity market and has
offices in the UK and Germany.  It focuses on companies with enterprise values
up to €400 million.

HgCapital was the most active investor in mid-market European technology
buy-outs in 2003.  Its other technology investments include the MBO of Xyratex,
which recently completed an IPO on NASDAQ, nine months after the investment by
HgCapital, and the public to private buy-out of Rolfe & Nolan, which recently
announced a trebling of profits, its most successful trading period in its
30-year history, twelve months after its acquisition by HgCapital.

HgCapital's other investments include Raymarine (consumer), Tunstall
(healthcare), FTE Automotive (industrials), Hoseasons (leisure) and Boosey &
Hawkes (media).  Details of these investments can be found on HgCapital's
website: www.hgcapital.net.

HgCapital services over 200 institutional clients and manages HgCapital Trust
plc, an investment trust listed on the London Stock Exchange that participates
in all of HgCapital's investments.  HgCapital has funds under management of €1.3
billion.

HgCapital is the trading name of Hg Investment Managers Limited and Hg Pooled
Management Limited. Registered office: Third Floor, Minerva House, 3-5 Montague
Close, London SE1 9BB.  Authorised and regulated by the Financial Services
Authority.



LDC

1.   LDC has, since 1981, completed over 325 investments and has ongoing
     interests in over 100 businesses across the UK.

2.   LDC backs ambitious, entrepreneurial management teams seeking
     between £2m and £30m of equity.

3.   LDC invests in a broad range of sectors, including aerospace, healthcare, 
     IT/electrical, leisure, retail, specialist engineering and support 
     services.

4.   LDC is one of the most active private equity companies in the UK mid
     market (typical transaction sizes up to £100m).  Recent transactions 
     include the MBO investments at HFS, Rosebys, comdirect and Brittons, plus 
     exits from Ethel Austin, Phones International Group, and CSR.

5.   LDC has a regional network of ten offices - Birmingham, Bristol,
     Leeds, Liverpool, London, Manchester, Newcastle, Nottingham, Reading and
     Southampton.

6.   LDC (Lloyds TSB Development Capital) is part of the Lloyds TSB
     Group. Authorised and regulated by the Financial Services Authority.

7.   For further information, call Patrick Sellers on 0207 4991500 or visit
     www.ldc.co.uk


7 July 2004


                      This information is provided by RNS
            The company news service from the London Stock Exchange