Acquisition of Interest

RNS Number:7070T
Envesta Telecom PLC
29 December 2003


29 December 2003

        ENVESTA TELECOM ACQUIRES 27% INTEREST IN UK SOFTWARE DISTRIBUTOR


Envesta Telecom Plc ("Envesta") has acquired a 27% interest in the issued share
capital of Formjet plc ("Formjet") for #100,000 in cash. Formjet has been
established by Lyndon Chapman, Chairman and Chief Executive of Envesta, and
others to undertake a management buyout of Software Dialog Group Plc ("SDG UK"),
the UK software distribution business owned by New York OTC listed Software
Dialog Group Inc. Mr Chapman was Executive Chairman of SDG UK until he resigned
in October 2003 to enable the management buyout.

SDG UK's principal business is the UK distribution of software. In the six
months ended 31 December 2002, SDG UK made a loss before taxation of #174,596 on
turnover of #445,170. Net Liabilities at 31 December 2002 were #524,241 and at
completion are expected to be approximately #206,000.

Mr Chapman and his family have invested #104,000 in Formjet, Kevin McGovern,
Finance Director of Envesta, has invested #50,000, and Matthew Baker, European
Sales Director of Envesta, has invested #30,000.

Mr Chapman and Mr McGovern, who will join the Board of Formjet as part time
Executive Chairman and non Executive Director respectively, acquired their
interests at a 20 per cent. and a 13 per cent. discount, respectively, to the
price paid by other investors, reflecting their roles in the management buyout
and their importance to the future development of the business.

Mr Chapman, Mr McGovern and Mr Baker took no part in the Envesta's Board's
deliberations concerning the investment. The independent directors believe that
the investment represents a significant opportunity for Envesta and, having
consulted with Envesta's nominated adviser, Corporate Synergy, consider that the
terms of the transaction are fair and reasonable in so far as Envesta's
shareholders are concerned.
                                                                            Ends

For further information please visit www.envestaplc.com or contact:

Lyndon Chapman, Chairman                     Melissa Richards
Kevin McGovern, Finance Director             Tavistock Communications
Envesta Telecom Plc                          Tel: [phone]
Tel: [phone]                           [e-mail]
[e-mail]



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