Acquisition

Wilmington Group Plc 16 October 2006 Embargoed until 0700 16 October 2006 WILMINGTON GROUP plc ACQUISITION OF MERCIA GROUP LIMITED Wilmington Group plc ('Wilmington' or 'the Group'), the professional information and training group, is pleased to announce the acquisition of Mercia Group Limited ('Mercia'). Wilmington's wholly-owned subsidiary, Central Law Training Limited ('CLT'), has acquired 82.7% of the issued share capital of Mercia for a consideration of £7.1m in cash. CLT has also entered into put and call option arrangements for the acquisition of the outstanding 17.3% of Mercia to be acquired by 2016. The maximum aggregate consideration payable for 100% of Mercia will be £11.5m. Mercia which was established in 1979, employs 70 staff and an extensive team of presenters. It is one of the largest independent providers of training and support services to the accountancy profession. Mercia has a client base of approximately 4,000 independent accounting practices including over 1,000 subscription clients. Mercia is a well established and profitable business providing training and publishing for accountancy firms including:- • a complete practical training programme for the independent accountancy practice; • marketing support for individual firms; and • a range of technical manuals supporting documents, practice reviews and general technical support for accountancy practices. In the year ended 30 June 2006 Mercia's turnover was £6.35m (2005: £5.78m) and it generated profit before tax of £687k (2005: £400k). As a result of the change of ownership various costs will not now be incurred. On this basis, the normalised profit before tax for the year ended 30th June 2006 would have been £890k. The acquisition of Mercia will strengthen Wilmington's Legal & Regulatory division and will provide exciting opportunities for leveraging key brands and databases into the accountancy sector. The strategic fit of Mercia, which principally serves the needs of accountants in private practice, and Quorum Training, which was acquired in May 2005 and which principally works with finance professionals in commerce and industry, will provide the opportunity for further growth. Charles Brady, Chief Executive of Wilmington, said: 'We have known the management team of Mercia for many years. They have built a strong and growing subscription based business serving the accountancy profession, which will complement CLT's 4600 subscription members in the legal market. We anticipate many benefits for both companies'. -ends- For further information, please contact: Wilmington Group Charles Brady, Chief Executive 0207 422 6800 Basil Brookes, Finance Director Weber Shandwick Square Mile Nick Oborne, Kirsty Raper or Helen Thomas 0207 067 0700 Notes to Editors Wilmington Group plc is one of the UK's leading providers of information and training for professional business markets. The Group provides training, arranges industry events and publishes magazines, directories, databases and special reports focused primarily on its four principal sectors of Legal & Regulatory, Healthcare, Media & Entertainment and Design & Construction. Capitalised at approximately £175 million, Wilmington floated on the London Stock Exchange in 1995. This information is provided by RNS The company news service from the London Stock Exchange

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Wilmington (WIL)
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