Subsidiary Buys LA Video and Audio Rental Co

Vitec Group PLC 25 January 2000 Vitec Group plc ('Vitec') --------------------------- Vitec Group plc ('Vitec') is pleased to announce the acquisition, through a wholly owned subsidiary ('the Purchaser'), of substantially all of the rental assets of Duke City Video ('Duke City'), a professional video and audio equipment rental company based in Los Angeles, California. The maximum consideration payable is US$12.25 million in cash. Of the maximum consideration, $2 million was paid on completion. A further $1.55 million, less any reductions in purchase price which may be made in relation to rental assets with customers at completion not subsequently returned to the Purchaser, Duke City's sales tax liability in relation to the acquired assets and its indemnities under the sale and purchase agreement, is payable once such reductions, if any, have been determined. The balance of $8.7 million, less the adjustment to the purchase price in relation to assets missing at completion, is payable in stages upon confirmation that the Purchaser has unencumbered title to the acquired assets. The net book value of the acquired assets was approximately $11.2 million at completion. The acquired assets will be operated along with those of Vitec's video and audio rental companies in the USA. Malcolm Baggott, Chief Executive, commenting on the acquisition said 'This consolidates our position as the premier rental company serving major sporting and other events in the USA and elsewhere in the world'.

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