Re Contract

K3 Business Technology Group PLC
05 January 2005


                          K3 BUSINESS TECHOLOGY GROUP PLC
                                     ('K3')

                                   ANNOUNCES

                   CONTRACT WIN WORTH £0.45M IN RETAIL SECTOR


K3, the IT solutions supplier, is pleased to announce that its subsidiary, K3
Landsteinar, has agreed a contract worth approximately £0.45m with Moss
Pharmacy, the UK's third largest pharmacist.

Under the terms of the contract, K3 Landsteinar will install and support
Microsoft Navision software across Moss Pharmacy's retail outlets in the UK. The
contract is part of a phased programme to enhance Moss Pharmacy's entire IT
infrastructure. K3 Landsteinar has already completed the implementation of
Microsoft Navision software in over 180 Moss Pharmacy stores.

Microsoft Navision software provides a comprehensive solution for retailers,
encompassing all aspects of the business process including electronic point of
sale, inventory management, warehouse control and trends analysis. K3
Landsteinar has been the leading reseller of the software in the UK for the last
four years.

Andy Makeham, CEO, of K3 commented,

'I am delighted to announce this contract worth £0.45m with Moss Pharmacy. It
represents the latest success for K3 Landsteinar, which we acquired in October
2004 and confirms our view that K3 Landsteinar has exciting growth opportunities
ahead.'

Enquiries:

K3 Business Technology Group                                    T: 01282 864111
Andy Makeham, Chief Executive
David Bolton, Finance Director

Biddicks                                                        T: 020 7448 1000
Katie Tzouliadis


About K3 Landsteinar
____________________


K3 Landsteinar sells, implements and supports Microsoft Navision Business
Management software to companies  predominantly in the retail and distribution
sectors.  The business is a wholly owned subsidiary of K3 Business  Technology
Group, having been acquired in October 2004.  Its acquisition represented the
expansion of K3 Business  Technology Group's activities beyond the manufacturing
sector and into the related markets of retail and distribution.


About Moss Pharmacy
___________________


Moss Pharmacy has over 860 stores throughout the UK. It is the third largest and
fastest growing pharmacy who provides support, advice and delivers
pharmacist-led services within the community.



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