Trading Statement

K3 Business Technology Group PLC
21 July 2005



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

                                 TRADING UPDATE

K3, the IT solutions provider to the supply chain sector, today comments on
trading for the six months ended 30 June 2005, ahead of the Company's interim
results which will be announced mid September.

The Company is pleased to confirm that its half year results are expected to be
materially in excess of market expectations. The board of directors further
believes that the Company's adjusted operating profit will be materially in
excess of that which it reported for the full year ended 31 December 2004.

The Company's strong performance has been helped by six major new orders secured
this year worth £8.7 million in total, (more than the Company's turnover in
2004). The contracts include a £4.5 million order signed with Carpetright plc in
May and a £2.0 million contract which the Company's newly acquired subsidiary,
Information Engineering Group Limited, signed with Doncaster Group Limited in
June. The full benefit of these new orders will be felt over the second half of
this financial year and beyond.

Andy Makeham, CEO, of K3 commented:

'K3 has been fundamentally transformed over the last 15 months or so. Key
acquisitions have changed K3's profile and the Company is now tightly focused on
providing Microsoft-based business solutions to three sectors: retail,
distribution and manufacturing.

With our strong portfolio of products, we have every expectation that we can
continue to make rapid progress in developing our business.'

Enquiries:
K3 Business Technology Group                                   T: 01282 864111

Andy Makeham, Chief Executive
David Bolton, Finance Director

Biddicks                                                       T: 020 7448  1000
Katie Tzouliadis




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