Retail Contract Wins

K3 Business Technology Group PLC
28 September 2007


KBT.L

                        K3 BUSINESS TECHNOLOGY GROUP PLC


                            ('K3' or 'the Company')


               New contract wins by the Retail Software Division

K3, which supplies and supports IT solutions for mid-tier retailers and
manufacturers, is pleased to announce that its Retail Software Division has won
a number of significant new contracts in recent weeks, which are expected to
generate revenues of approximately £2.0m.

The largest of these contracts is with Jigsaw, the well known high street
fashion retailer. K3 will install and support its Microsoft Dynamics NAV
software with an implementation that is expected to be completed by mid 2008.

K3 has also won a contract with the two leading stationery chains owned by Theo
Paphitis, namely Rymans & Partners the Stationer ('Rymans'), to supply the same
Microsoft Dynamics NAV software. The solution will replace existing legacy
systems and provide functionality to address Finance, Inventory Management,
Distribution and support the operation of Rymans' 250 stores across the UK. The
system is to undergo a rapid implementation, going live during October.

Andy Makeham, CEO, of K3 commented,

'When we announced our interim results at the beginning of the month, we stated
that the Retail Software Division had seen lead intake increase and that the new
business pipeline looked very encouraging. I am now delighted to announce that a
number of these deals have concluded successfully, including Jigsaw and Rymans.

Over the last year, we have invested significantly in the Retail Software
Division, restructuring it around specific market sectors. Our new contracts
with Jigsaw and Rymans are testimony to the progress we are making in building
our position within our chosen sectors. Jigsaw and Rymans also provide K3 with
additional high profile reference sites, which are valuable to us as we continue
to drive sales forwards.'





Enquiries:

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

Biddicks        Katie Tzouliadis/Sophie Lane                T: 020 7448 1000

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






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