Placing and Acquisition

i-documentsystems Group PLC
8 May 2002


8 May 2002


                          i-documentsystems group plc


                  Placing of New and Existing Ordinary shares

        and Acquisition of the trade and assets of The Planning Exchange


i-documentsystems group plc (the 'Group'), a leading specialist provider of
e-government solutions to local authorities, is pleased to announce that Teather
& Greenwood Limited, as agent for the Group, has placed a total of 11,986,668
new ordinary 1p shares on behalf of the Group and 6,779,999 existing ordinary
shares on behalf of Lombard Risk Management Plc, with new and existing
institutional investors, at a price of 12 pence per share.



Placing of New Ordinary Shares (the 'Placing')

The Placing represents 11,986,668 new ordinary shares ('New Ordinary Shares') to
raise £1,438,400, before expenses of the issue, at a price of 12 pence per
share.  The proceeds will be used towards the acquisition of the business and
assets of The Planning Exchange as announced on 25 March 2002 and detailed below
as well as to augment the Group's existing working capital.  The New Ordinary
Shares rank pari passu with the existing ordinary shares of the Group and
represent 8.54 per cent of the enlarged issued share capital of the Group.



Application has been made for the New Ordinary Shares to be admitted to the
Alternative Investment Market ('AIM') of the London Stock Exchange plc.  It is
expected that dealings in the New Ordinary Shares will commence on Friday 10 May
2002.



Placing of Existing Ordinary Shares (the 'Vendor Placing')

The Vendor Placing represented 6,779,999 existing ordinary shares ('Existing
Ordinary Shares') to raise £813,600 before expenses on behalf of the vendor,
Lombard Risk Management, (the 'Vendor') and represents 4.83 per cent of the
enlarged issued share capital of the Group.  The Vendor Placing was also carried
out at a price of 12 pence per share.  The Vendor retains a total of 26,989,601
ordinary shares, representing 19.23 per cent of the enlarged issued share
capital of the Group.



Acquisition of The Planning Exchange

The Group announced on 25 March 2002, that it had entered into heads of
agreement for its 100% owned subsidiary, i-dox Information Services Ltd, to
purchase the business and assets of The Planning Exchange for a consideration
together with further investment of circa £1 million.  The acquisition of the
business and assets of The Planning Exchange was completed on 7 May 2002.



The Planning Exchange provides content and information services to the planning
and wider community on aspects of economic, environmental and physical
regeneration and development in the UK to a client base of 316 subscribers, of
which approximately a quarter are local authorities.  Other clients include
government departments, consulting firms, housing organisations and research
bodies.



The consideration for the acquisition, paid in cash, was £442,725.  The audited
accounts of The Planning Exchange for the year to 31 March 2001 reported an
income surplus of £4,462 based on net assets of £43,119 and turnover of
£1,411,198 using The Planning Exchange's accounting policies.  Immediately after
the acquisition of The Planning Exchange and after the admission of the new
shares the Group will have cash reserves net of expenses of circa £2,800,000.



The Planning Exchange is a registered charity and will post acquisition change
its name to The Planning Exchange Foundation and cease trading. The existing
staff of The Planning Exchange shall continue to be employed by the i-dox
Information Services Ltd and Tony Burton, Managing Director of The Planning
Exchange shall become a Director of i-dox Information Services Ltd.



Commenting on the Placing Andrew Fraser, Chief Executive of i-documentsystems
group plc, said:



'I am delighted to have completed the acquisition of the business and assets of
The Planning Exchange.  The combination of the i-dox UKPlanning service and the
Planning Exchange Information Unit will allow the Group to build the premier
Business Process Management solution for the planning and regeneration industry.
  This will offer significant opportunities to leverage from both businesses
existing customers and build new revenue streams.  I am also pleased that we
have been able to attract new institutional investors as well as the continued
support of our existing shareholders.'



                                     -Ends-





For further information please contact:


John Wisbey, Chairman, i-documentsystems group plc              T 020 7353 5330

Andrew Fraser, CEO, i-documentsystems group plc                 T: 020 7427 0660

Tim Bowen, CFO, i-documentsystems group plc                     T: 020 7427 0660

Richard Thompson/Martin Lampshire/Michael Seabrook              T: 020 7426 9000
Teather & Greenwood Limited

Nadja Vetter/Richard Fallowfield, Cardew & Co.                  T: 020 7930 0777

Alasdair Robinson, Noble & Company Limited                      T: 0131 225 9677



Notes to editors:

i-documentsystems group plc is a fast-growing software company which specialises
in the development of products for document, content and information management.
The Group's principal product is Image-Gen, a sophisticated web-based software
package which allows complex paper-based processes to be automated.  The
Image-Gen Java-based applications are ideally suited to meet e-Government
requirements.  This market presents significant opportunities, as there are 468
local authorities in the UK, all of which are expected to comply with the Prime
Minister's directive to ensure that the bulk of Local Government services are
available electronically by 2005.



The Group has a leading position in putting the Local Government Planning
process online and there has been growing interest in capabilities from other
local authority departments.  The Group's recently opened Glasgow office,
together with increased staffing, has enabled the company to pursue some
interesting new business opportunities and anticipates growth in delivering
other services electronically



The Group also developed UKPlanning.com, an ASP (Application Service Provider)
model for local authorities to store and index planning documents in order to
make them available for public inspection on the internet. Rather than each
council separately developing the expertise, i-documentsystems would provide
this service on an outsourced basis using its existing Image-Gen technology.



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