Acquisition

    AVID HOLDINGS PLC - ACQUISITION                        

                            (`Avid' or the `Group')                            

                    Acquisition of Alpha Anodising Limited                     

Avid Holdings plc is pleased to announce its acquisition of Alpha Anodising
Limited, a specialist metal finishing business in the Buckinghamshire area.
Based upon the latest management accounts of Alpha and on the closing
mid-market share price for Avid on 26 March 2008, the full consideration
payable is £679,813 plus up to maximum of £120,000 deferred consideration
payable on 27 September 2008.

Highlights

  * Acquisition of Alpha Anodising Limited (`Alpha') for an initial cash
    consideration of £595,000 plus the issue of 6,400,000 new ordinary shares.
    Additional consideration equal to the value of net assets in excess of 
    £646,457 at completion or, if less, net current assets in excess of £500,000
    (derived from completion accounts).
   
  * Deferred cash consideration up to £120,000 is payable after six months
    dependent on future profitability.
   
  * Acquisition provides strategic opportunities and synergies with Avid's
    other engineering interests, bringing substantial work (currently
    sub-contracted) within the group.
   
Introduction

In line with the Board's strategy of organic growth and of acquiring
complementary businesses in the precision engineering sector, Avid is pleased
to announce that it has today acquired the entire issued share capital of Alpha
Anodising Limited.

The transaction consists of an initial consideration of £595,000 cash, plus
payment for net assets in excess of £646,457 at completion or, if less, net
current assets in excess of £500,000, plus the allotment (credited as fully
paid) of 6,400,000 new ordinary shares.

Deferred consideration up to a maximum cash amount of £120,000 is payable after
six months dependent on Alpha's future performance.

A proportion of the cash element, £450,000, is being financed by a
securedbanking facility from HBOS plc, the Group's new bankers, who have also
provided additional working capital of at least £250,000.

Application has been made for the new ordinary shares (which will rank pari
passu in all respects with the existing issued ordinary shares) to be admitted
to trading on AIM and it is expected that dealings in the new ordinary shares
will commence on 1 April 2008.

Alpha Anodising Limited

Alphawas established in 1972 and has remained in family ownership ever since,
building a solid reputation in the field of high quality metal finishing. The
Company, based in Buckinghamshire, has developed a highly diversified customer
base due to its specialised expertise and reputation. Its offerings include a
wide range of production techniques such as mechanical and chemical finishes,
high quality surface and sub-surface printing, as well as professional design
and prototyping services. The company supplies the medical, scientific, defence
and audio industries.

Alpha's last published accounts for the financial year ended 30 June 2007 show:

  * Turnover of £1,143,408;
  * Gross Profit of £317,217;
  * Adjusted Net Profit of £168,611;
  * Net Assets of £635,985 and Net Current Assets of £538,027, of which 
    £367,672 is cash at bank.
   
Alpha's latest Management Accounts to December 2007 show profits in excess of
£60,000, in line with managements expectations.

Alpha employs 22 people, including Robert Haig, the retiring Managing Director
and owner, who is contracted to a six-month consultancy period.

The Board of Avid believes that the acquisition will complement the Group's
existing operations and provide the following benefits:

  * strategic opportunities within Electro-mec's client base who currently
    purchase metal finishing from other sources
   
  * synergies available through Group consolidation of work currently
    sub-contracted to third parties
   
  * contribution of regular profit to the Group.
   
At present, Alpha has no formal marketing structure or dedicated sales
resource, and this is an area where Avid can add value.

Commenting on the acquisition Jonathan Bobbett, Avid Chief Executive, stated:

"This acquisition, our second in 13 months, advances our strategy of acquiring
complementary businesses in the precision engineering sector and is a stepping
stone to further acquisitions. The Avid group intends to act as a consolidator
in this fragmented sector, becoming a larger and profitable group providing
enhanced shareholder value."

Contact:

Jonathan Bobbett, Chief Executive
Avid Holdings Plc
Tel: [phone]

http://www.avidholdings.co.uk

Ross Andrews, Nominated Adviser
City Financial Associates Limited
Tel: [phone]

Stephen Goschalk, Stockbroker
Newland Stockbrokers Limited
Tel: [phone]



END