Expansion of Central & Eastern European Operations

ITE Group PLC 2 November 1999 Acquisition in Poland Joint Venture in Bulgaria And Acquisition of Consultancy agreement in Moscow ITE Group plc, ('ITE'), the international exhibitions specialist is pleased to announce the expansion of its Central and Eastern European operations with two acquisitions and a joint venture. Biuro Reklamy Poland S.A ('Biuro Reklamy') On 1 November 1999 ITE, through its wholly owned subsidiary, International Trade and Exhibitions (ITE) Worldwide B.V., entered into a conditional agreement with Pentor Communications International L.P. ('Pentor') to acquire its 60% shareholding in Biuro Reklamy for a cash consideration of US$3.7 million. This agreement is conditional, inter alia, on consent of the Office of Protection of Competition and Consumers in respect of anti-competition laws and the consent to the transfer of shares by the shareholders of Biuro Reklamy. Biuro Reklamy, together with its two subsidiaries Polexpo and Agpol, generated sales in 1998 of zl 39.218 million (US$ 9.29 million) and profits after tax and minority interests of zl 2.031 million (US$ 481,000). The net assets of Biuro Reklamy as at 31 December 1998 were zl 2.381 million (US$564,000). Biuro Reklamy is the largest exhibition organiser in Warsaw with 14 exhibitions in 1998 with a net exhibition space of 43,741 sq.ms. Through its subsidiary it also holds exhibitions in Gdansk. Joint Venture with Agency Bulgarreklama Limited ('Bulgarreklama') in Bulgaria ITE through its 70% owned subsidiary, IEG International Limited, has recently entered into a long term joint venture agreement with Bulgarreklama in relation to the 18 exhibitions that Bulgarreklama expects to hold in Sofia, Bulgaria in the year 2000. ITE and Bulgarreklama will share the profits on a 50/50 basis with ITE selling international space and Bulgarreklama carrying out the local selling and organising of the shows. Bulgarreklama is also building a new exhibition centre in Sofia and ITE is providing support for this project which should be ready by May 2000. L.A.Financial Group Inc, Alex Bernstein and Sergei Levit On 1 November 1999, ITE agreed to acquire certain of the rights of the existing consultancy agreement with L.A.Financial Group Inc, Alex Bernstein and Sergei Levit and to the hivedown of ITE s exhibitions in Moscow into a new wholly owned subsidiary of ITE. The consideration agreed to be paid will total US$8 million with an initial payment of US$2 million and further equal payments US$1.5m at the end of each financial year for the next four years. ITE will no longer pay any sales commission under the existing consultancy agreement, which amounted to approximately US$480,000 in the year to 30 September 1999 (US$ 600,000 1998). Lawrie Lewis, Chairman of ITE said, 'These two acquisitions and the joint venture further expands ITE s operations in Central and Eastern Europe through established local partners. Biuro Reklamy has a reputation for quality exhibitions in Poland and should prove an excellent base for us. We will be looking to merge our existing exhibitions in this region into their operation, then to go on to further expand in Poland. The joint venture with Bulgarreklama cements our operations in Bulgaria, following our acquisition of exhibition organisers, IEG which was announced earlier this year. The acquisition of the consultancy arrangements in Russia means that ITE and Alex Bernstein s team in Moscow will now consolidate and focus on a common goal. These deals and the new management team show that ITE s strategy to be the leading exhibition organiser in Eastern Europe is now becoming a reality.' For further information, please contact: ITE Group plc Lawrie Lewis Chairman 0171 596 5000 Odette Jonkers Press Office 0171 596 5253 Buchanan Communications Richard Oldworth/Isabel Petre 0171 466 5000

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