Acquisition

The Vitec Group PLC 09 May 2005 FOR IMMEDIATE RELEASE The Vitec Group plc 9 May 2005 The Vitec Group plc Acquisition of Kata Introduction The Vitec Group plc ('Vitec' or the 'Group') announces that it has signed an agreement to acquire the business and assets of Kata International Limited and Kata Professional (Kimchi & Tishler) Limited ('Kata'), the designer and manufacturer of premium protective carrying bags for cameras and accessories in the photographic and broadcast markets, for an initial cash consideration of US$8.0 million (£4.2 million) and deferred consideration of up to US$13 million (£6.9 million) conditional upon future sales and profitability targets (the ' Acquisition'). The Board of Vitec believes that the Acquisition will add a profitable photo and video accessory company with a high quality brand image to the Group. Bogen Imaging, the distribution arm of the Group's Photographic Division, already sells Kata's bags and the Group has built a sound understanding of Kata and its successful management team in recent years. Kata also supplies a range of bags for Manfrotto's tripods. Following the Acquisition, Kata will be integrated into the Group's Photographic Division. The Acquisition will be funded from existing resources and is expected to be immediately earnings enhancing (see note 1). Commenting on the Acquisition, Gareth Rhys Williams, Chief Executive of Vitec, said: 'The Board feels that the manufacture of video and photographic bags will enhance the range of accessories that we already produce. With the additional benefits of distribution to third party dealers through Bogen Imaging, the acquisition has the potential to generate attractive returns for the Group's shareholders. We look forward to working with Kata even more closely in the future.' Information on Kata Kata designs, develops, manufactures and markets high quality products which integrate smart protection solutions with innovative carrying systems. Kata's line of products includes cases for cameras and accessories in the photographic and broadcast markets as well as backpacks and vests for personal protection. In the year ended 31 December 2004 Kata generated profit before tax of US$1.1 million (£0.6 million). Net assets as at 31 December 2004 were US$1.1 million (£0.6 million). Kata is based in Jerusalem, Israel. For more information, see www.kata-bags.com Summary terms of the Acquisition Under the terms of the acquisition agreement, Vitec is acquiring the business and assets and assuming certain liabilities of Kata for an initial net cash consideration of US$8.0 million (£4.2 million) payable upon completion, which is expected to take place by 31 May 2005. Deferred consideration of up to a maximum of US$13.0 million (£6.9 million) is also payable on the achievement of certain annual sales and profitability targets for 2005 - 07. The maximum deferred consideration will only become payable if turnover and profit before interest and tax in the year ending 31 December 2007 exceed US$20.4 million (£10.8 million) and US$4.6 million (£2.4 million) respectively. -Ends- Contacts: The Vitec Group plc Telephone: 020 8939 4650 Gareth Rhys Williams Alastair Hewgill Financial Dynamics Telephone: 020 7269 7291 Rob Gurner Richard Mountain Notes to Editors About The Vitec Group plc The Vitec Group plc supplies a wide range of equipment and services to the broadcasting, entertainment and photographic industries. Its products are distributed in nearly 100 countries, either through dealerships or direct to the end user or corporate sector, and it has manufacturing facilities in four countries. The Vitec Group is a major force in its chosen specialised fields. More information can be found at: http://www.vitecgroup.com. Note 1 This statement should not be taken to mean that earnings per share of The Vitec Group plc will necessarily exceeded historic earnings per share of The Vitec Group plc and no forecast is intended or implied. Note 2 All values in pounds sterling have been calculated using the exchange rate: £ 1: 1.89 US$ This information is provided by RNS The company news service from the London Stock Exchange

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