New Contract Win

K3 Business Technology Group PLC
17 June 2005



                                        
                        K3 BUSINESS TECHOLOGY GROUP PLC
                                     ('K3')
                                        
                                    ANNOUNCES
                                        
                                NEW CONTRACT WIN

K3, the IT solutions provider to the supply chain sector, is pleased to announce
that Information Engineering Group Limited ('IEG'), the software provider to the
manufacturing sector which K3 is in the process of acquiring, has secured a
contract with Doncaster Group Limited ('Doncaster'), worth a total of
approximately £2.0 million over the next 10 months.

Doncaster is a leading manufacturer of precision components and assemblies for
the aerospace, power generation, specialty automotive and medical orthopaedic
industries, with operations in Europe, the US and Mexico. IEG will be supplying
and implementing SYSPRO software in 13 of Doncaster's manufacturing sites in the
UK and US. The SYSPRO suite of software is specifically tailored for the
manufacturing sector and provides mid-range manufacturers with a complete
enterprise resource planning solution, enabling them to manage and control the
manufacturing process as well as the financial and distributions functions. IEG
will begin implementing the software this month and will complete the roll-out
by March next year.

K3's acquisition of IEG remains conditional, amongst other things, on
shareholder approval at K3's extraordinary general meeting on 20 June 2005. The
acquisition is expected to complete on 21 June 2005.

This new agreement takes the total value of new orders secured by K3 since the
beginning of the new financial year to £8.7million. This includes a £4.5m
contract signed in May with Carpetright plc, the carpet & floor coverings
retailer. Under the terms of the contract with Carpetright, K3's retail software
division will be installing Microsoft Navision business management software
across 450 Carpetright stores, with on-going support provided thereafter. Other
new contracts were signed with: Scotts of Stow, the mail order specialist; Moss
Pharmacy, the UK's third largest pharmacist and Space NK, the beauty products
retailers.

Andy Makeham, CEO, of K3 commented,

'This is a significant contract win for IEG and demonstrates the strength of
IEG's position in the mid-range manufacturing software market and the excellence
of their implementation team, as well as the quality of the SYSPRO software.

The contract with Doncaster follows a total of £6.7 m of new agreements, signed
over the first half, by our retail software division, K3Landsteiner, and our
distribution software division, K3 Elucid. In particular, in May, we were
delighted when K3 Landsteiner secured a £4.5m agreement with Carpetright plc to
install and support new business management software across 450 stores. These
successes support our strategy for the Group and give us great confidence for
the future.'

Enquiries:
 K3 Business Technology Group                                   T: 01282 864111
 Andy Makeham, Chief Executive 
 David Bolton, Finance Director

 Biddicks                                                       T: 020 7448 1000
 Katie Tzouliadis



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