Placing & Director Holding

K3 Business Technology Group PLC
09 October 2006



K3 BUSINESS TECHNOLOGY GROUP PLC



('K3' or the 'Company')



Placing and Director Dealing



The Board of K3 announces that the Company has raised £1,627,500 through the
conditional placement of 1.55 million new shares at a price of 105 pence per
share (the 'Placing Shares').  As part of the placing, institutional investors
have conditionally subscribed for 983,000 Placing Shares and Directors and
certain employees of K3 have conditionally subscribed for a total of 567,000
Placing Shares.  The Directors acquired Placing Shares as follows:


                                           Prior to Placing                      Post Placing

                                       Shareholding    Percentage   No. of shares       New            New
                                                                     acquired     shareholding     Percentage

        Johan Claesson Non-Executive       3,811,448        21.5%        150000       3,961,448        20.5%
                       Director


          David Bolton Finance               612,300         3.5%        150000         762,300         4.0%
                       Director


          Andy Makeham Chief                 599,139         3.4%        150000         749,139         3.9%
                       Executive
                       Officer


             Tom Milne Non-Executive         125,000         0.7%        100000         225,000         1.2%
                       Chairman



     Total issued share capital           17,740,719                                 19,290,719





Proceeds of the Placing Shares will be used to strengthen the Company's balance
sheet and give the Company more flexibility regarding any acquisition
opportunities that may arise going forward.



Application has been made for the Placing Shares to be admitted to AIM and
admission is expected on 13 October 2006.  The Placing Shares will rank pari
passu with K3's existing ordinary shares.



Enquiries:



K3 Business Technology Group plc
Andy Makeham, Chief Executive
Tel: [phone]



Biddicks
Katie Tzouliadis
Tel: [phone]



Bridgewell Limited
Shaun Dobson
Simon Bridges
Tel: [phone]




                      This information is provided by RNS
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