Acquisition

Northgate PLC 23 January 2006 23 January 2006 NORTHGATE PLC ('Northgate') ACQUISITION OF FLEET TECHNIQUE LIMITED ('FTL') Northgate, the UK's leading specialist in light commercial vehicle hire, announces that, in line with its recently announced Strategic Plan, it has acquired the entire issued share capital of FTL, a UK fleet management company for a consideration of approximately £5.7 million (net of cash balances acquired) (the 'Acquisition') from its vendors; Robert, Gillian and Benjamin Hodds. The consideration will be satisfied in cash, funded from Northgate's existing bank facilities. Established some fourteen years ago, FTL is a specialist fleet management business based in Gateshead, with full UK coverage. Third party fleets currently under management total some 15,000 vehicles, including both car and commercial vehicles. FTL has developed a leading software package for the industry and a reputation for excellent service to its customers. The Acquisition enables Northgate to offer its current and prospective customers a full range of flexible vehicle solutions, particularly for those companies that run mixed fleets of both owned and rental vehicles. It also allows Northgate to capitalize upon its core skills and strengths of purchasing, maintaining and disposing of large volumes of vehicles. The Acquisition is expected to be earnings enhancing in the first full year following completion. Commenting on the acquisition of FTL, Martin Ballinger, Chairman of Northgate, said: 'We are excited by the acquisition of FTL which is consistent with our Strategic Plan outlined in conjunction with our interim results earlier this month. We believe that our entry into the fleet management business will enable us to offer a full range of vehicle services to fleet users on both a local and national level.' For further information, please contact: Northgate plc 01325 467 558 Steve Smith, Chief Executive Gerard Murray, Finance Director Hogarth Partnership Limited 020 7357 9477 Andrew Jaques Barnaby Fry Anthony Arthur Notes for editors Northgate plc rents light commercial vehicles and sells a range of fleet products to businesses via a network of hire companies. Their NORFLEX product gives businesses access to a flexible method to acquire as many commercial vehicles as they require. Further information regarding Northgate plc can be found on the Company' website: http://www.northgateplc.com This information is provided by RNS The company news service from the London Stock Exchange

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