Acquisition

Northgate PLC
23 January 2006


23 January 2006

                          NORTHGATE PLC ('Northgate')

                 ACQUISITION OF FLEET TECHNIQUE LIMITED ('FTL')



Northgate, the UK's leading specialist in light commercial vehicle hire,
announces that, in line with its recently announced Strategic Plan, it has
acquired the entire issued share capital of FTL, a UK fleet management company
for a consideration of approximately £5.7 million (net of cash balances
acquired) (the 'Acquisition') from its vendors; Robert, Gillian and Benjamin
Hodds. The consideration will be satisfied in cash, funded from Northgate's
existing bank facilities.

Established some fourteen years ago, FTL is a specialist fleet management
business based in Gateshead, with full UK coverage. Third party fleets currently
under management total some 15,000 vehicles, including both car and commercial
vehicles. FTL has developed a leading software package for the industry and a
reputation for excellent service to its customers.

The Acquisition enables Northgate to offer its current and prospective customers
a full range of flexible vehicle solutions, particularly for those companies
that run mixed fleets of both owned and rental vehicles. It also allows
Northgate to capitalize upon its core skills and strengths of purchasing,
maintaining and disposing of large volumes of vehicles.

The Acquisition is expected to be earnings enhancing in the first full year
following completion.


Commenting on the acquisition of FTL, Martin Ballinger, Chairman of Northgate,
said:

'We are excited by the acquisition of FTL which is consistent with our Strategic
Plan outlined in conjunction with our interim results earlier this month. We
believe that our entry into the fleet management business will enable us to
offer a full range of vehicle services to fleet users on both a local and
national level.'

For further information, please contact:

Northgate plc                       01325 467 558
Steve Smith, Chief Executive
Gerard Murray, Finance Director

Hogarth Partnership Limited         020 7357 9477
Andrew Jaques
Barnaby Fry
Anthony Arthur

Notes for editors

Northgate plc rents light commercial vehicles and sells a range of fleet
products to businesses via a network of hire companies. Their NORFLEX product
gives businesses access to a flexible method to acquire as many commercial
vehicles as they require.

Further information regarding Northgate plc can be found on the Company'
website:

http://www.northgateplc.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange