Acquisition

Torex Retail PLC
10 August 2004



10 August 2004



                                Torex Retail plc
                        ('Torex Retail' or 'the Group')

                      Acquisition of KPOS Computer Systems



Torex Retail plc ('Torex Retail' or 'the Group'), a leading provider of IT
solutions to major European retailers, today announces the completion of the
acquisition of KPOS Computer Systems Limited ('KPOS') for a total consideration
of £8.7 million. This will be satisfied by the payment of £5.0 million in cash
and £3.7 million by the issue of 6,839,321 new ordinary shares ('Consideration
Shares'). On completion KPOS had cash balances of £2.1 million.



KPOS, established 28 years ago, is a well respected supplier of electronic point
of sale systems to the UK market with clients including Waterstone's, Virgin
Megastores, Focus DIY, Millets, Rosebys and Shoefayre. The company is an IBM
Premier Business Partner and a Microsoft Certified Solutions Provider. Based in
the UK and Malaysia, KPOS employs approximately 70 people. The acquisition will
enable Torex Retail to expand its customer base and its portfolio of leading
edge store management solutions.



For the year ended 31 March 2004, KPOS achieved revenues of £9.5 million and
pre-tax profits of £0.8m. Torex Retail expects the acquisition to be earnings
enhancing in the current year.



Lew Gray, currently Managing Director of KPOS and a major shareholder, will join
the board of the Group's UK Store Management Solutions business.



Commenting on the acquisition, Mark Pearman, Chief Executive of Torex Retail,
said:



'We are delighted to welcome KPOS to the Group. This immediately earnings
enhancing acquisition expands our growing UK customer base and increases our UK
channel to market. KPOS has an outstanding reputation for customer service and
this together with their strong product portfolio significantly strengthens our
offering in Store Management Solutions'.



Lew Gray, Managing Director of KPOS added:



'This is a very exciting time for KPOS and we are thrilled to be joining Torex
Retail at this point in their development. Torex Retail has a blue-chip client
base and market leading technology. We look forward to working with the Torex
Retail team to firmly establish the company as the leading European retail
solutions provider'.



Application will be made for the Consideration Shares to be admitted to trading
on AIM.  It is expected that admission will become effective on 13 August 2004.



                                    - Ends -


Enquiries:

Torex Retail plc                       Citigate Dewe Rogerson
Rob Loosemore, Executive Chairman      Ginny Pulbrook / Freida Moore / Seb Hoyle
Mark Pearman, Chief Executive          Telephone: [phone]
Telephone: [phone]



Notes to Editors:



Torex Retail plc, a leading European retail solutions business, floated on AIM
in March 2004.  The business is an independent supplier of electronic point of
sale ('EPoS') solutions and services and productivity tools to high street,
convenience and petroleum retailers with an installed base of some 50,000 EPoS
licences across Europe.  It has a broad base of blue-chip clients and employs
700 staff in UK, Germany, Belgium, Holland and Eire.  www.torexretail.com



KPOS Computer Systems, based in UK and Malaysia, is one of the UK's leading
retail IT suppliers. With 28 years of experience providing total solutions, KPOS
is a true systems integrator, combining world-leading products and value-add
service to deliver a complete solution for retail customers

Worldwide KPOS has installed over 3000 stores in 25 countries, delivering
solutions for over 100 UK and international chains and independent retailers.
Almost half of KPOS customers have dealt with the company for over five years,
and KPOS also boasts industry-leading staff retention, management and financial
stability.

KPOS is best known as IBM's largest and most successful retail Business Partner,
with well proven skills and many successful projects based on IBM hardware and
software products, including the latest touchscreen technology.

Over the past few years KPOS has developed into one of Microsoft's leading
Certified Solution Providers, with a range of Windows-based in-store and head
office software, and software development teams in UK and Malaysia. With a
proven reputation for quality and long-term support, KPOS has become the
supplier of choice for multiple retailers looking for state-of-the-art software
solutions. www.kpos.co.uk






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