Trading Statement

K3 Business Technology Group PLC
21 January 2008



KBT.L

                        K3 BUSINESS TECHNOLOGY GROUP PLC
                            ('K3' or the 'Company')

                                 TRADING UPDATE

K3, the IT solutions provider for retailers and manufacturers, is pleased to
announce the following pre-close trading update prior to the announcement of its
preliminary results in March.

The Company is pleased to report that results for the year to 31 December 2007
are expected to be in line with current market expectations, with operating
profit (before goodwill amortisation) at the upper end of market estimates. The
Retail Software Division has seen a steady improvement in margins which we
expect to continue into 2008 and we are also pleased to see increasing
multi-channel retail sales. This reflects the increasing importance of online
sales for retailers which we anticipate will be a high growth area for us this
year. Since the acquisition of McGuffie Brunton in March, the Manufacturing
Software Division recorded a steady increase in average order values.

The sales pipelines across both Divisions remain strong and we look forward to
2008 with confidence.

The Board looks forward to updating shareholders on K3's progress in mid-March
when preliminary results will be announced.



Enquiries:

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

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

Biddicks                    Katie Tzouliadis                    T: 020 7448 1000










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