Sale of Division

K3 Business Technology Group PLC
29 March 2004



                        K3 BUSINESS TECHNOLOGY GROUP PLC

                                     ('K3')

                               ANNOUNCES SALE OF

                          ENTERPRISE SYSTEMS DIVISION


K3 Business Technology Group plc ('K3') is pleased to announce that it has
agreed the sale of its Enterprise Systems Division, based in Crewe, to Azur
Group Limited for £2.55m. The sale represents a profit on disposal of £1.40m.


The sale of the Division, which supplies IBS based Enterprise Resource Planning
('ERP') solutions to the manufacturing sector, is part of the Group's
re-focusing of activities to concentrate on the development of a portfolio of
Microsoft-based supply chain management solutions and expand its presence within
the distribution and retail sectors. Accordingly, K3 intends to use the proceeds
of the sale to make suitable acquisitions in line with this strategy.


The total consideration of £2.55m for the Crewe business is represented by
£1.87m in cash on completion, with the balance of £0.68m being the accrued
income retained by K3. K3 will collect the trade receivables and discharge the
trade payables generating a further £0.73m of cash. Further consideration may be
receivable in one year dependent on gross margins achieved. Currently, this is
estimated to be £0.15m.


The Enterprise Systems Division was responsible for the development, support and
marketing of the IBS integrated ERP solution for SME manufacturers and during
the year ended 31 December 2003, reported an operating profit of £0.44m before
amortisation of goodwill but after management charges, and an operating profit
of £0.28m. K3 has sold the goodwill and fixed assets relating to the division
which were included in the balance sheet at 31 December 2003 for £0.97m and
£0.04m respectively; it has retained the receivables and payables.


Andy Makeham, K3 CEO, commented:


'The sale of the Enterprise Systems Division represents a constructive step as
we move forward with our ambitions to develop our Microsoft-based business
solutions and expand the business into the distribution and retail sectors. The
proceeds of sale of the Division will be re-invested in acquisitions that meet
our strict selection criteria and we are actively considering a number of
targets.



'After the sale, while we will remain the UK's largest supplier of ERP solutions
to the SME manufacturing sector, with over 1,500 customers, our resources will
be more effectively focused on growth opportunities and we view 2004 with
confidence as we seek to consolidate our vision.'

ENDS

Enquiries:
K3 Business Technology Group plc   Andy Makeham, Chief Executive            T: 020 7448 1000 (today)
                                   David Bolton, Finance Director           Thereafter: 01282 864111

Biddicks                           Katie Tzouliadis/Kathryn van der Kroft   T: 020 7448 1000

Rowan Dartington & Co. Limited     Barrie Newton                            T: 0117 933 0011


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