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Kalamazoo Comp Grp. (KLMZ)

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Monday 29 November, 1999

Kalamazoo Comp Grp.

Process Improvement to Strengthen Customer Focus

Kalamazoo Computer Group PLC
29 November 1999

                             
    KALAMAZOO BUILDS ON PROCESS IMPROVEMENT TO STRENGTHEN
               CUSTOMER FOCUS AND REDUCE COSTS

Kalamazoo Computer Group ('Kalamazoo') today confirmed that
it is building on the process improvements achieved through
its Advantage 2000 transformation programme both to
strengthen customer focus within the business and to further
reduce costs.

This announcement follows the completion of a planned mid-
year review of progress with the Advantage 2000
transformation programme which was launched by Chief
Executive Malcolm Roberts following his appointment in June
1998.  At its heart was the introduction in April of this
year of a new process-based organisation design.

Malcolm Roberts explains: 'The new organisation design has
made a significant contribution to the progress we made
during the first half of our financial year.  Six months
after its introduction was the right time to review its
effectiveness, looking for opportunities to realise
additional benefits, and to fine tune the organisation where
that was required.  We've now completed that review'.

Over the remainder of its financial year (ending 31 March
2000) Kalamazoo will refine the organisation structure and
reporting lines to strengthen its focus on customers.
Malcolm Roberts comments: 'In today's highly competitive
markets it's not enough that Kalamazoo make progress
financially and bring new solutions to market.  At the same
time we must ensure that we are totally focused on our
customers, and on sustaining high quality mutually
beneficial relationships with them.  To that end, we're
aligning more closely those parts of the organisation that
deal directly with customers, both in marketing and sales,
and also in delivery.'

Simultaneously, Kalamazoo will continue to reduce the level
of costs in the business.  Malcolm Roberts says: 'The
Advantage 2000 processes have delivered a leaner, more
focused, process-led Kalamazoo.  We owe it to our
shareholders to realise the very significant financial
savings this has made possible.  We therefore intend to
remove around £1.5-£2m of net annual cost from the
business.'  one off costs of around £0.7m will be incurred
in realising these ongoing savings.  There will be a number
of redundancies across the business and Kalamazoo is
currently consulting with employee representatives before
these are finalised.


For further information, contact:

     Malcolm Roberts, Chief Executive
     Kalamazoo Computer Group plc           0121-411-3518
     
     
     Richard Darby/Suzanne Dunne
     Buchanan Communications                0171-466-5000

                                                                        

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