Re Contract

Anite Group PLC
03 July 2006



For immediate release                                        Monday, 3 July 2006

                                Anite Group Plc
                                        
                          Contract and Provision Update

Anite Group plc, ('Anite' or 'the Group'), the worldwide IT solutions and
services company, today announces that it has signed a deed of settlement and
release in relation to its contract with the Department of Human Services of the
State of Victoria ('SoV'), based in Melbourne, Australia. This removes any
further liabilities in return for a one off payment.

Background

On 7 April 2006, the Board of Anite announced that it was in detailed
negotiations regarding options to finish the final stages of the SoV project on
the most efficient basis with least cost and risk. However, it was expected that
Group would have no option but to incur further one off costs in relation to the
contract, at a likely additional cost of several million pounds over the next
couple of years, which whilst reducing risk, would not have given certainty or
capped the Group's liabilities.

Settlement details

The full and final settlement that has now been agreed allows for:

   • A payment to be made from the Group's existing cash resources of
     approximately A$24 million (approximately £9.7 million) to be made on 10
     July 2006;
   • Following payment, the removal of all obligations and liabilities on the
     part of Anite Group and its subsidiaries in respect of the performance of
     the SoV contract;
   • The handing over of Stage One of the project software, associated source
     code and a licence to operate it.

Anite Australia restructuring

Following the agreement, Anite expects to restructure its Australian business as
it constitutes a special purpose vehicle created to undertake the SoV contract.
This will lead to additional costs being incurred. These costs have yet to be
finalised but are likely to be in the region of £4 million, including various
non-cash write-downs. The remaining SoV provision carried forward at the year
ended 30 April 2006 has been utilised in the current financial year to date.
Following the settlement, prior year operating losses and cash outflow (expected
to be around £4.5 million in the year ended 30 April 2006) will be totally
eliminated going forward.

Preliminary results - 11 July 2006

The Group confirms that as intended it will announce its preliminary results for
the year ended 30 April 2006 on Tuesday, 11 July 2006. These results will
include the costs of both the SoV payment and the Anite Australia restructuring.
The cash costs of these charges are expected to be lower than the total sum.

Steve Rowley, Anite's Chief Executive, commented:

'Today's settlement represents a significant milestone providing shareholders
with complete certainty. This removes the risks and ongoing losses relating to
the State of Victoria contract. Whilst the costs relating to the settlement and
restructuring are high, the compelling logic of withdrawing from this troubled
contract and relationship, compared to the costs and risks of continuing until
completion, was clear.

'The removal of this significant distraction, which has been ongoing since 2002,
will now enable management to focus on Anite's core businesses.'

A conference call for analysts will be held at 9.30am this morning.

For further information, please contact:                     www.anite.com

Anite Group plc                                              01753 804000
Steve Rowley, Chief Executive
Christopher Humphrey, Group Finance Director

Smithfield                                                   020 7360 4900
Reg Hoare/Sara Musgrave





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