Lambeth LEA Project

RM PLC
16 February 2005



   RM awarded £17.1 million Lambeth LEA 'Connected Learning' ICT PFI project

RM plc, the UK's leading supplier of ICT and other services to education, has
signed a £17.1 million PFI contract to deliver a Connected Learning service to
schools in Lambeth LEA (Local Education Authority). The Group announced on the
26th March 2004 that it was the sole bidder for this educational ICT project.

Under the eight-year contract, RM will provide a complete educational ICT
service for 6 main-stream secondary schools, 2 secondary special schools and 2
Pupil Referral Units in Lambeth. This service will include fully managed
Community Connect networks in each school, along with a range of digital
learning resources hosted within RM's Kaleidos virtual learning environment. RM
will be responsible for the initial commissioning of the service, day-to-day
management over the eight-year contract term, and a major strategic 'refresh'
during the life of the project.

Commenting on the award of the contract, Phyllis Dunipace, Executive Director of
Education for Lambeth LEA, said:

'We are delighted to be embarking on an eight year strategic partnership with RM
designed to improve both efficiency and standards of teaching and learning in
the schools that have chosen to participate.

'The Lambeth Connected Learning Project is one of four special projects selected
by the government to find effective ways of using technology to transform
education.'

Tim Pearson, CEO of RM, added:

'The Lambeth project is the third of three DfES ICT PFI projects that we have
bid for and won. Each project focuses on a different approach to educational
ICT, and the three projects together demonstrate RM's unique ability to deliver
sophisticated ICT systems that help teachers teach and learners learn.

'As with our other recent PFI projects, the Lambeth LEA Connected Learning
service builds on RM's Learning Platform architecture. The knowledge and
experience we have gained through bidding and delivering these PFI contracts -
and our other strategic education projects - position us well for the DfES'
Building Schools for the Future initiative.'

                                    - Ends -

For further information, please contact:

Mike Greig/Phil Hemmings, RM plc                         08709 200200

Fiona Laffan/Mark Antelme, Brunswick                     020 7404 5959


Notes to Editors:

1. The Lambeth PFI project is the last of four pathfinder DfES-funded
   contracts to be awarded, all of which are aimed at raising educational 
   standards through the innovative application of Information Communication 
   Technologies. RM has bid for and won three of these projects (Lambeth LEA, 
   Newham LEA and Warwickshire LEA).

2. Service delivery will start in May 2005 and turnover from the contract is
   expected to be broadly flat across the life of the project.

3. Financing for the PFI element of the project will be provided for from RM's
   cash resources. The peak financing requirement is expected to be £4 million
   in 2006. Note that this is in addition to the Group's usual underlying
   capital expenditure and the previously reported £8.2 million capital
   expenditure requirement of the Warwickshire, Newham and Dudley PFI projects.


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