Contract Wins

K3 Business Technology Group PLC 17 September 2007 KBT.L K3 BUSINESS TECHOLOGY GROUP PLC ('K3' or 'the Company') Announces Contract Wins in Manufacturing Software Division worth £1.35 million K3, the IT solutions provider for retail, distribution and manufacturing sectors, is pleased to announce that its Manufacturing Software Division has recently secured four new contracts totalling c£1.35 million in value. The four contracts, individually worth £0.65m, £0.4m, £0.2m and £0.1m, have been signed respectively with: Westland Horticulture Ltd, a UK leader in the provision of composts, plant foods, lawn treatments, which owns the well known Unwin Seeds brand; ceramic tableware specialists, Dudson Group; Tods, the specialist manufacturers of advanced composites technology for the aerospace and defence sector and TTI, the electronic test equipment manufacturer. The deal with Westland Horticulture Ltd, at £0.65m, first noted in the interim results announcement on 7 September, is especially creditworthy because of its size and complexity. McGuffie Brunton (the Syspro distributor which K3 acquired in April and which establishes K3 as the sole UK supplier of Syspro software), was involved in the tender process together with IEG, K3's existing Syspo distributor. Additionally, K3 customised its Syspro ERP product with McGuffie Brunton's own warehouse management system and a logistics sofware package. As this contract demonstrates, the combination of IEG and McGuffie Brunton is now enabling K3 to tender for larger contracts within its marketplace. Westland will be adopting K3's Syspro solution for its new corporate information system and the 100 user system will be installed over two sites, in Dungannon, Northern Ireland and Alconbury Hill, Cambridgeshire. In K3's contracts with both Dudson Group and Tods, K3 will be replacing both companies' bespoke manufacturing system with a Syspro ERP system. Implementation is expected to be completed by the beginning of April 2008. The TTI contract designates K3 to replace TTI's current Swan manufacturing system with a Syspro solution. Andy Makeham, K3's Chief Executive, commented, 'The new business pipeline as we enter the second half of the year is strong and I am pleased to announce these new orders. The acquisition of Syspro distributor, McGuffie Brunton, in April has added critical mass to our Manufacturing Software Division and establishes it as the sole UK supplier of this market leading software. The full financial benefits of the acquisition will be seen in 2008 but it is very encouraging to see the synergies start to come through not least in that we are now in a position to bid for larger contracts - as our contract with Westland demonstrates.' Enquiries: K3 Andy Makeham, Chief Executive T: 01282 864 111 Biddicks Katie Tzouliadis T: 020 7448 1000 Daniel Stewart Paul Shackleton T: 020 7776 6550 (NOMAD) This information is provided by RNS The company news service from the London Stock Exchange
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