Acquisition

Microgen PLC
01 July 2005

1 July 2005


                           Acquisition of R/Base Limited


Microgen plc has acquired the entire issued share capital of R/Base Limited 
('Rbase'), a UK provider of SAP applications management and consultancy
services. Rbase specialises in providing managed services and is one of only
five SAP partners in the UK accredited for both services and hosting. Further
information on Rbase can be found at www.rbase.co.uk .


The consideration paid in respect of the issued share capital of Rbase is £1.22
million, comprising £0.61 million in cash and £0.61 million by the issue of
740,290 new Microgen shares. Application has been made to the UK Listing
Authority and the London Stock Exchange to admit the 740,290 new ordinary shares
of 5p to the Official List. The new shares will rank pari passu in all respects
with the existing ordinary capital. It is expected that admission will be
granted on 5 July 2005 and that the shares will be listed on 6 July 2005. The
net debt of Rbase at completion was £0.43 million which Microgen intends to
repay. There are no deferred payments.


Rbase is based in Camberley, Surrey, and was formed in 1996. For the 12 month
period to 30 April 2005, unaudited accounts report revenue of £3.0 million and
an operating profit of £0.04 million. As at 30 April 2005 Rbase had unaudited
net liabilities of £0.25 million.


Rbase will be integrated into Microgen's Solutions Division and the two founders
/shareholders will remain with Microgen. Restructuring charges associated with
the integration, estimated to be in the order of £0.3 million including property
provision, are anticipated to be incurred in the current financial year.


Contact :


Mike Phillips, Group Finance Director                               01753-847122

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


www.microgen.co.uk


                      This information is provided by RNS
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