Annual Report and Accounts

31 January 2005                                

                        Annual Report and Accounts 2004                        

A copy of the above document has been submitted to the UK Listing Authority and
will shortly be available for inspection at the UK Listing Authority's Document
Viewing Facility, which is situated at: Financial Services Authority, 25 The
North Colonnade, Canary Wharf, London, E14 5HS. Tel. No. (0)207 066 1000

The report and accounts include the notice of the Annual General Meeting to be
held on 3rd March 2005. The notice includes a proposed resolution to grant the
Company the authority to purchase its own shares. The resolution is being
proposed so as to allow the Company the flexibility to purchase its own shares,
although there is no present intention to do so. Any authority granted would
only be exercised if the directors are satisfied that any purchase will
increase earnings per share and is in the interests of shareholders. As this is
the first time such an authority has been proposed, this announcement is made
in accordance with rule 15.3 of the Listing Rules.

The Sage Group plc