Options Reviewed re Pegasus & Freecom.net

Sage Group PLC
11 January 2000


Further to Sage's announcement on 22 December 1999, the
Company notes today's announcement by Freecom.net of a share
offer for Pegasus Group PLC ('Pegasus').  Sage has reviewed
its options and has decided that any offer for Pegasus at or
around this level would represent poor value for Sage
shareholders.  Accordingly, Sage has decided not to proceed
with making an offer for Pegasus.


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