Re Baugur Acquistion

K3 Business Technology Group PLC
25 October 2007


KBT.L
                        K3 BUSINESS TECHNOLOGY GROUP PLC

                             ('K3' or 'the Group')

                        Baugur Group acquires LS Retail,
                   Developer of K3's Retail Software Solution

Baugur Group, the international investment group which owns high street
retailers such as House of Fraser, Goldsmiths and Iceland, has recently acquired
LS Retail, the Icelandic developer of K3's Microsoft Dynamics based retail
software solution.

K3 is the leading UK distributor of LS Retail's retail software solution, with a
particularly strong presence in key sectors such as fashion and fast moving
consumer goods. In September 2007, K3 further strengthened its position in the
retail sector with the acquisition of Landsteinar Nederland, the LS Retail
partner in Holland.

Andy Makeham, CEO of K3, commented,

'K3 continues to grow its Retail Software Division, having recently announced
contracts worth £2m including with the high street fashion retailer, Jigsaw.

Baugur's acquisition of LS Retail represents an exciting development in the
retail software market. We have developed a strong relationship with LS Retail
over a number of years and we now look forward to working closely with the
Baugur Group going forward.'


Enquiries:

K3        Andy Makeham, Chief Executive                   T: 01282 864 111
          David Bolton, Chief Finance Officer

Biddicks  Katie Tzouliadis/Sophie Lane                    T: 020 7448 1000



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