Strategic Alliance

QUADRANT GROUP PLC 10 September 1999 Quadrant Group plc Quadrant Systems Strategic Alliance Quadrant Group plc ('the Company') today announced that its flight simulation and training subsidiary Quadrant Systems Limited ('Quadrant Systems') has entered into a strategic alliance with Flight Safety Boeing Training International LLC ('FSB'). The alliance encompasses co-operation between the two companies in a number of areas: - the purchase by a subsidiary of FSB of Quadrant's three full flight simulators for £4.46 million in cash - a contract whereby Quadrant Systems will maintain and technically support the three flight simulators, as well as a fourth FSB simulator, for a minimum period up to July 2004. - the award by FSB to Quadrant Systems of several contracts for the upgrade and relocation of certain of FSB's simulators around the world, with the possibility of further such contracts in the future. - potential future contracts whereby Quadrant Systems would maintain FSB's simulators in its new training centres in Europe. - co-operation on certain military flight training programmes. FSB is the world's leading provider of flight training for large commercial aircraft, and is jointly owned by The Boeing Company and FlightSafety International Inc (a subsidiary of Berkshire Hathaway Inc). It has recently established a base in the UK from which to launch its planned growth in Europe. Because of the size of the transaction, the sale of the three flight simulators and certain related assets is subject to approval by the Company's shareholders at an Extraordinary General Meeting. A Circular setting out details will be posted to shareholders as soon as practicable. Irrevocable undertakings to vote in favour of the proposed disposal have been received from shareholders representing 52% of the Company's outstanding ordinary shares. The sale of the simulators will realise a net gain on disposal of approximately £1.3 million. Following completion of the FSB agreements, Quadrant Systems will continue to focus on its growing business as one of the world's leading independent companies providing flight simulator upgrades, relocations, technology additions and maintenance. David Coghlan, Chief Executive of Quadrant Group, commented: 'The agreements with FSB represent a significant step forward for Quadrant Systems, confirming its position as a leader in the highly specialist flight simulation services market. FSB is one of the largest customers for such services and we look forward to a growing long term relationship'. The Company's preliminary announcement of results for the year ended 31 May 1999 has been released today as a separate announcement. Enquiries: David Coghlan and Nigel Poultney 01527 850080 Quadrant Group PLC

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