New Contract Wins

K3 Business Technology Group PLC
09 August 2007


KBT.L

                        K3 BUSINESS TECHNOLOGY GROUP PLC

                                     ('K3')

                       New Contract Wins in Key Verticals

K3, which provides IT solutions to mid-tier retailers and manufacturers, is
delighted to announce that its policy of focusing on key verticals in its Retail
Software division (whereby the company identifies and targets niche sectors)
continues to drive sales. The strategy has led to a number of significant new
contracts signed in recent weeks across the the key verticals including
Breweries and Fashion:

    •  In the fashion sector, FOOTASYLUM has selected K3's Microsoft Dynamics 
       Retail solution to support its fast-growing chain of high-end casual 
       footwear and apparel retail stores. The contract is for the installation
       and integration of Microsoft Dynamics across its stores nationwide for 
       point of sale and in-store back office, and in the head office for 
       merchandising, warehousing and financials.

    •  In the drinks and brewing sector, the Caledonian Brewing Company Ltd 
       (CBCL), the Edinburgh based traditional brewery, has selected K3's
       'Drink-it' solution (a Microsoft Dynamics based Retail Solution tailored 
       for the brewing and drinks industry). Drink-it will enable CBCL to run a 
       complex business that embraces third party distributors, telesales, 
       excise duty, discounts and promotions. In addition, CBCL will use 
       Microsoft CRM functionality to enable it to access customer information 
       such as visit reports, marketing activity, indirect sales and competitor 
       data, and provide this to the telesales staff and to the business     
       development managers via PDAs. CBCL is the fourth such brewery to sign up 
       for this new vertically focused solution.

Andy Makeham, Chief Executive of K3, commented,

'These wins reflect the increasing success of our policy of verticalisation and
niche marketing campaigns. We believe that our product offering provides an
ideal solution for mid-tier retailers and by focusing on these key verticals, we
are able to target retailers with a message relevant to their sector,
successfully driving sales.

Pipelines are strong and we have a number of significant deals at an advanced
stage in both the retail and manufacturing sectors.'

Enquiries:

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

Biddicks                          Sophie Lane                          T: 020 7448 1000

Daniel Stewart (NOMAD)            Paul Shackleton                      T: 020 7776 6550


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