Acquisition

Microgen PLC
07 November 2005

microgen

Information Management Solutions

       www.microgen.co.uk

7 November 2005: embargoed for 7.00am


                    Acquisition of Milvus Software Limited

Microgen plc has acquired the entire issued share capital of Milvus Software
Limited ('Milvus'), a provider of solutions for private and international
banking, from Blue Diamond Limited. Further information on Milvus can be found
at www.milvussoftware.com.

For the year ended 31 December 2004, audited consolidated accounts report
revenue for Milvus of £3.7 million and an operating profit of £0.59 million. As
at 31 December 2004, Milvus had net assets of £0.49 million, including net funds
and amounts due from Blue Diamond Limited of £1.9 million. The cash
consideration paid in respect of the issued share capital of Milvus is £4.5
million, but following repayment of all amounts due from Blue Diamond,  the
enterprise value of the transaction is approximately £2.5 million. There are no
deferred payments.

Milvus is headquartered in Guernsey, with offices in Barnstaple and Bracknell.
Milvus will be integrated into Microgen's Asset & Wealth Management business
within the Group's Financial Services division. Restructuring charges associated
with the integration are estimated to be in the order of £0.4 million which will
be incurred in the current financial year.


Contact :

Mike Phillips, Group Finance Director                    01252 772312

Giles Sanderson, Financial Dynamics                      020-7831-3113
Ben Way, Financial Dynamics


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