Acquisition of Shian

RNS Number:2172T
Chelford Group PLC
27 October 2005



FOR IMMEDIATE RELEASE                                            27 October 2005

                               CHELFORD GROUP PLC

                      ACQUISITION OF SHIAN FOR UP TO #2.5M

Chelford Group plc ("Chelford"), the IT supply chain software/services, SAP and
RFID solutions group, is pleased to announce that it has acquired Shian Limited
("Shian") for a maximum consideration of up to #2.5 million.

Shian is an IT solutions and services business focussed on Microsoft and SAP
applications.  For Microsoft applications, Shian's principal markets are in the
financial services and public sectors.  It is a Microsoft Gold Certified Partner
with competencies in Data Management Solutions, Information Worker Solutions and
Microsoft Business Solutions.  For SAP, Shian focuses on supply chain
applications.  Customers include Hewlett Packard, Black and Decker, Barclays
Bank, Scottish Enterprise and Glasgow City Council.  Earlier this month, Shian
was runner-up in the Scottish Software Company of the Year Awards.  Shian
employs 35 staff in its Glasgow, Scotland, offices.

The acquisition of Shian complements Chelford's existing activities.  The
Microsoft Business Systems practice adds to the Group's existing operations,
while Chelford's SAP Division will be strengthened by Shian's activities.
Meanwhile, Financial Services and the Public Sector represent new vertical
markets for the enlarged group.  The addition of an office in Glasgow will help
in servicing Chelford's existing Scottish customers and extend its coverage in
that area.

In the year to 30 April 2005, Shian's turnover was #2.03 million and profit
before taxation was #379,000.  Net assets at 30 April 2005 were #241,000.  At
completion, Shian had a cash balance of approximately #315,000.

The initial consideration of #1.365 million in cash has been satisfied from
Chelford's existing resources.  A deferred cash consideration of #60,000 will be
paid on 30 April 2006.  Additional consideration of up to #1.075 million in cash
will be made, subject to the performance of Shian in the financial year ending
30 April 2006.  The vendors are Shian's founders, Darren and Catherine Murphy.

Chelford's Chief Executive, Trevor Lewis said: "Shian is an excellent fit with
Chelford's existing activities and conforms to our strategy of acquiring
complementary companies with good organic growth potential.  Shian strengthens
our existing SAP activities, adds a successful Microsoft solutions practice,
takes us into additional vertical market sectors with opportunities for
cross-selling and gives us a strong presence in Scotland."

About Chelford

Chelford Group plc is headquartered in Basingstoke, Hampshire, and its shares
are quoted on AIM (stock code: CHR).  Chelford's principal operating divisions
are: SSI, a developer and vendor of supply chain solutions based on its TROPOS
product suite sold mainly to mid-sized corporate customers;  Chelford SAP
Solutions, a SAP solutions supplier to the mid-market; and Agility Systems, a
provider of supply chain execution and RFID solutions to the consumer products
and transport and logistics markets.


For further information, please contact:

Trevor Lewis, Chief Executive                                     01256-685400

Steve Liebmann or Susan Scott at Bankside                        020-7367-8888







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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