Disposal

InterX PLC 17 April 2002 EMBARGOED UNTIL 7.00 AM 17 April 2002 INTERX PLC ('InterX' or the 'Company') Proposed Sale of Software, Other Intellectual Property and Business of InterX Technology Limited ('ITL') (the 'Sale') The Board announces that InterX and its internet software subsidiary, ITL, (together the 'Group'), have reached agreement for the sale to The Innovation Group plc ('TiG') of all intellectual property relating to ITL's business ('ITL IPR'), including the BladeRunner, InterX Net2020 and Wrapper software. Certain other assets, including the sales pipeline, required for the business of ITL to be acquired by TiG as a going concern, are also to be sold by ITL, with the relevant staff being transferred. The transaction, in accordance with the requirements of the Listing Rules of the UK Listing Authority, is conditional upon shareholder approval and certain other conditions. Accordingly, a circular (the 'Circular') will be sent to all shareholders in due course in order to provide shareholders with information regarding the sale and to seek their approval for the Sale at an extraordinary general meeting. Irrevocable undertakings to approve the transaction have already been received from 50.89 per cent. of InterX shareholders. Consideration Initial consideration, before transaction costs, will be payable by TiG in cash to InterX and ITL of £300,000 and £1m respectively. Deferred consideration of up to £7m may become payable to ITL by TiG, to be satisfied in either cash or TiG shares, at TiG's option. The amount of the deferred consideration payable will be calculated as a multiple of the value of licence revenues from the ITL IPR achieved by TiG in the two year period from today. The multiple to be applied in the first year will be 3 and in the second year, 2. Of this deferred consideration, £4m is guaranteed, irrespective of the level of licence revenues, and is payable in equal instalments on 1 April 2003, 1 October 2003, 1 April 2004 and 1 October 2004. Name Changes The ITL IPR includes the right to the use of the name InterX. Accordingly, ITL will change its name upon completion of the transaction and InterX will change its name by 31 October 2002 to names not incorporating the word 'InterX' or the initials 'ITL'. Upon InterX changing its name, any remaining rights of InterX to the InterX name will also be assigned to TiG. Option Agreement InterX and TiG will enter into an option agreement whereby TiG is granted an option to subscribe for 1.5m new InterX shares at an exercise price of 6p per share and acquires the right to appoint a non-executive director to the Board of InterX. The option will lapse on 30 June 2004. Financial effects of the transaction As at 31 December 2001, the net assets the subject of the transaction were valued at £nil, although goodwill attributable to the software business was valued at £10m; this will be written off to the profit and loss account. Revenues and net losses attributable to these net assets in the six months ended 31 December 2001 were £976,000 (11 months ended 30 June 2001: £5.8m) and £6.6m (11 months ended 30 June 2001: £25.3m) respectively. Currently, the ITL IPR is the sole source of revenue for the Group, apart from management charges to the Company's remaining investments. The initial consideration of £1.3m from the transaction will reduce to approximately £530,000, after accounting for professional fees associated with the transaction and other matters. As at 31 March 2002, assuming completion of the transaction had taken place and after payment of the professional fees referred to above, the Group would have had aggregate cash reserves of approximately £3.8m. The Group currently has outstanding net creditors of £1.9m and will, after completion of the transaction, have future monthly operating costs, including property related costs, of approximately £300,000 per month. In order to increase the Company's available cash reserves the Board continues actively to market the Company's head office in Brentford, upon which there is a £5.4m rent deposit. Diligenti Limited ('Diligenti') Diligenti remains in breach of the terms of the InterX loan agreement, which was due for repayment on 31 December 2001. £18m remains due to InterX under this loan agreement. Diligenti's creditors and shareholders approved proposals for a company voluntary arrangement ('CVA') on 11 March 2002. Approximately £0.8m is required to fund the CVA and the Board is currently assessing how this should be funded. Subject to completing the funding of the CVA, InterX has options to increase its shareholding in Diligenti to approximately 95 per cent. InterX believes that Diligenti has the potential to offer shareholders value in the future. The Board will provide more information concerning Diligenti in the Circular. Conclusion The Board's strategy is to realise the value of the Company's assets for the benefit of shareholders. The current financial vulnerability of the Group has irreparably damaged ITL's credibility as a viable enterprise software vendor and has accordingly impacted ITL's ability to convert its sales prospects into revenue. It is the opinion of the Board that the transaction represents the best option for shareholders with regards to realising value from ITL's software and related business assets. The Board continues to work towards realising value from the InterX Group's other assets and will update shareholders further in the Circular, which will include the results for the quarter ending 31 March 2002 and an update on the working capital position of the InterX Group. For further information, please contact: InterX plc 020 8817 4000 Simon Barker, Chief Executive Simon Miesegaes, Finance Director This information is provided by RNS The company news service from the London Stock Exchange

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