Trading Statement

K3 Business Technology Group PLC
04 July 2003

                        K3 BUSINESS TECHNOLOGY GROUP PLC

                                     ('K3')



                              DISPOSAL OF INTEREST

                                       &

                                 TRADING UPDATE





K3 is pleased to report that the businesses of RAP Group Limited ('RAP Group'),
in which it has an interest, have been sold to Polypipe Building Products
Limited part of IMI plc.



K3 disposed of Welpac Hardware Limited, Harwood Hardware Limited and Anderson
and Firmin Limited (the 'hardware companies') to RAP Group in March 2001 but the
consideration was deferred until the eventual sale of the hardware companies by
RAP Group.  In addition, K3 has provided additional funding to RAP Group since
disposal of the hardware companies and the debt outstanding on disposal was
approximately £1.1m, in addition to the expected deferred consideration of
£200,000 to RAP Group.



K3 expects that the proceeds received from RAP Group will be approximately
£700,000 of which £400,000 is due within 30 days of completion, £200,000 by 31
December and the balance in early 2004.  K3 will receive an additional £200,000
from the owners of RAP Group Limited.  This will result in a loss of £400,000.
K3 will retain the cash for future acquisitions as and when suitable
opportunities arise.



K3 is also pleased to announce that while market conditions continue to be
challenging, trading during the first half of the year, pre the RAP Group
balance write off, is in line with expectations.



Although the Company's markets remain challenging, the board remains cautiously
optimistic of the Company's prospects for the full year





Enquiries:


K3 Business Technology Group plc                               Tel: [phone]
Andy Makeham, chief executive
David Bolton, finance director

Biddicks                                                      Tel: [phone]
Katie Tzouliadis or Kathryn Burn

Rowan Dartington & Co. Limited                                Tel: [phone]
Barrie Newton, managing director




                      This information is provided by RNS
            The company news service from the London Stock Exchange