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Kalamazoo Comp Grp. (KLMZ)

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Friday 17 September, 1999

Kalamazoo Comp Grp.

Strategic Alliance

KALAMAZOO COMPUTER GROUP PLC
17 September 1999


             Kalamazoo Partnership with IBM

Kalamazoo Computer Group plc has announced at the
Frankfurt Internationale Automobil-Austellung (IAA) fair
the establishment of a strategic alliance with IBM, the
leading global supplier of IT solutions and services.
Through this relationship, Kalamazoo and IBM will combine
their capabilities and expertise to deliver unique
solutions to the automotive retail channel in Europe,
jointly addressing the immense challenges and
opportunities faced by automotive dealers in the new
millenium.

For Kalamazoo, establishing this partnership is an
important component in our continuing strategy to broaden
the range of our automotive solutions portfolio and the
benefits of this should accrue in the medium term.
Together with the sale of ERP applications to niche
manufacturing sectors, and the continuing development of
our highly successful desktop support solutions business,
this strategy enables us to continue starting to build
strong revenue streams beyond those provided by our
longer-established automotive dealer management systems
business.

In the mean-time, our next generation DMS has been
implemented in two dealers in Germany and Spain as part
of a carefully controlled early release programme.  This
will be supported during the Autumn by a limited sales
campaign to establish and prove the product in specific
automotive manufacturer dealer franchises in specific
countries.  At the same time Kalamazoo will add
functionality to the product, in response both to
experience in the initial implementations and also to
evolving market requirements in the fast changing
European automotive retail channel.

General availability of this DMS product will be preceded
by a full market launch in the first half of next year.

Malcolm Roberts added:

'We are committed to ensuring that our customers are
fully prepared for 1 January 2000, with millennium-
compliant solutions.  We consider it would be
inappropriate to launch a new DMS in the run-up to the
millennium, both in terms of our customers key concerns
over that period, and also from a commercial
perspective.'


For further information:

Nick Smith, Kalamazoo Marketing on:          0121-411-3225
Richard Darby, Buchanan Communications on:   0171-466-5000
                                                                                                                                                                               

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