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Kalamazoo Comp Grp. (KLMZ)

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Wednesday 19 January, 2000

Kalamazoo Comp Grp.

Kalamazoo Answer Sold to Answer Solutions

Kalamazoo Computer Group PLC
19 January 2000


              KALAMAZOO COMPUTER GROUP PLC

                Kalamazoo Answer Limited


Further to the announcement on 6 January 2000, Kalamazoo
Computer Group Plc ('Kalamazoo') announces that it has
exchanged contracts with Answer Solutions Limited to
dispose of the business of its subsidiary company
Kalamazoo Answer Limited ('Answer').

Answer, which is located in South Wales, specialises in
the development of software solutions primarily for food,
drink and pharmaceutical manufacturers.

The business, which was sold for a nominal consideration,
had net liabilities as at 31 March 1999 of £1,015,000 and
made a loss before tax of £258,000 in the year ended 31
March 1999.  The sale is expected to result in an
exceptional charge in the year ending 31 March 2000 of
£3,280,000, including £3,000,000 relating to goodwill
previously written off to reserves.

The decision by Kalamazoo to dispose of Answer follows a
strategic review of the activities of the group within
the overall Advantage 2000 change programme.  The
disposal will help Kalamazoo move closer to its goal of
sustained profit growth.  In recent years, Answer has
operated as a loss making business diluting the overall
performance of Kalamazoo and, after intensive review, it
is not felt that the potential returns from the operation
warranted the heavy investment that would have been
required to ensure that the Answer product remains
competitive in the market place.





For further information:

Malcolm Roberts, Group Chief Executive
Margaret Ashworth, Finance Director
Kalamazoo Computer Group              0121 411 2345

Richard Darby
Suzanne Dunne
Buchanan Communications               0171 466 5000

   

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