Acquisition

POLYDOC PLC
25 August 1999


                           PolyDoc Plc
                                
               PROPOSED ACQUISITION OF APPLIEDNET
                                
  Will create unique market profile, bringing together software
   products and consulting skills for knowledge harvesting and
         capture, content management and web publishing


POLYDOC,  the Anglo-Dutch knowledge management software company,
today  announced   that  it has signed a  letter  of  intent  to
acquire  the  privately held software, systems  integration  and
consulting   company   AppliedNet  which   delivers   customised
solutions  in  knowledge  management, business  information  and
market  intelligence. The combined software and skills  of  both
companies  would  make available unparalleled solutions  in  the
fast emerging knowledge management and e-business marketplaces.

Under  the terms of the agreement, AppliedNet would become fully
integrated  into  the PolyDoc organisation while  simultaneously
establishing the combined company with a significant presence in
the  UK,  operating from its Guildford offices. The  new  entity
will  become an 85 person European organisation offering a  full
spectrum    of    knowledge   management   software    products,
implementation and consulting services.  It is planned that  the
acquisition  will be on the basis of an issue of new  shares  in
PolyDoc  to the shareholders of AppliedNet. It is expected  that
the acquisition will be completed in the fourth quarter of 1999.

With offices and development facilities in The Netherlands,  the
United  Kingdom and the U.S.A., PolyDoc is focused on  providing
knowledge management solutions for the healthcare, manufacturing
and  defence markets. AppliedNet has a staff of 45 in  the  U.K.
shared  across  product development, sales and marketing  and  a
solid,  knowledge management technology consulting  base  of  22
consultants.

'The  acquisition  of  AppliedNet will  give  us  the  necessary
critical mass and additional resources to broaden and accelerate
the  sales of our combined knowledge management solutions in the
European  marketplace,  as well as to  expand  faster  into  the
United  States.'  said  Richard Maddocks, Managing  Director  of
PolyDoc.  'The integration of PolyDoc and AppliedNet  software
will allow us to enhance dramatically both product ranges, while
helping  customers enrichen the knowledge portals of  their  own
organisations.'

AppliedNet,  which  secured  a  £1.5  million  investment   from
prestigious UK venture capitalist, 3i , in March of  this  year,
has created a strong market niche since its creation in 1985  as
a  developer  of software that harnesses and manages information
and  corporate  knowledge. The company has built  a  substantial
client  portfolio  comprising blue chip multinationals,  defence
and  publishing  organisations. Although the  acquisition  would
strengthen  significantly PolyDocs present systems  integration
and  consulting capabilities, of particular interest to  PolyDoc
is  the  new  Knowledge  Agent software, which  can  infiltrate,
gather  and  disseminate both internal and external  sources  of
information.

'It  is  this  combination of AppliedNets knowledge  harvesting
software  and  web publishing solutions together with  PolyDocs
knowledge  capture  and content management software  that  would
create  a profile that is both unique and competitive,' affirmed
Richard Maddocks.

It  is  planned  for  James Macfarlane,  managing  director  and
founder  of  AppliedNet, to take on the role of  United  Kingdom
Managing Director of the new entity. 'We forsee a tidal wave of
interest building in knowledge management  which  will translate
into major orders as the Y2K phase passes,'  Macfarlane said.  
'Our  aim  is  to  achieve a critical mass and  a  more  complete
offering  to  capitalise on these opportunities.  Together  with
PolyDoc  we  would have a range of products thats difficult  to
beat  and would set us apart from other players in this  market.
Our  combined talents should critically define the market as  it
goes forward.'

POLYDOC,  a  knowledge management company, provides corporations
with  content  management and collaborative software  solutions.
These  solutions and consulting skills are applied  in  vertical
industries  such  as the healthcare, manufacturing  and  defence
sectors  and  are focused on Best Practice Sharing, Productivity
Enhancements and Revenue Generation. POLYDOCs software products
make  it  easy  to  create, access and reuse  business  critical
information in knowledge bases across enterprises

POLYDOC  is  a  public  company listed  on  the  UK  Alternative
Investment Market (AIM) and on the Nieuwe Markt of the Amsterdam
Stock  Exchanges (NMAX). POLYDOC is headquartered  in  Amsterdam
with  offices in the Netherlands, UK and USA. Information  about
POLYDOC    and    APPLIEDNET   products   are    available    on
http://www.polydoc.com and http://www.appliednet.co.uk.

   
  Barry Mence or Richard Maddocks (PolyDoc) 0031 20 301 39 00
  [e-mail]
  James  Macfarlane (AppliedNet)              01483  883000
  [e-mail]
  Steve  Liebmann (Buchanan Communications)   0171  466  5000
  [e-mail]