Acquisition

RNS Number:9598R
Morse PLC
12 November 2003

                                   Morse plc



Morse announces the acquisition of Systematics Technology Solutions GmbH, a
            German storage solution and computer supply company





Morse plc ("Morse"), the technology integrator, is pleased to announce the
acquisition of the entire share capital of Systematics Technology Solutions GmbH
("Techsol" or "the Company"), a storage solution and computer supply company in
Germany, for a consideration of Euro1.



Techsol is based in Munich with eight sales offices across Germany and now
employs 138 people. It has been formed from three non-core businesses operating
within the German operation of the current owners. In the year ended 31 December
2002 the business had pro-forma revenue of Euro150m and made an operating loss of
Euro6.5m. Since then Techsol's revenue has declined as a result of market
conditions and its position as a non-core business of its current owners.
However, the Company retains a strong customer base and will complement our
existing business in Germany. The combined business will result in a better
balanced German operation allowing us to develop our full technology integration
model more quickly, providing our current and future customers with solutions
based around a combination of hardware, software and services.



In the nine months to 30 September 2003 the unaudited management accounts show
revenue of Euro74m. Morse has plans to bring the business back to profitability as
soon as possible.  Techsol is expected to report a loss in this current
financial year.



The net liabilities of the business to be acquired, including non cash items,
will be no greater than Euro4m with no net debt.



The acquisition is subject to the receipt of satisfactory clearances from the
relevant competition authorities which are expected to be forthcoming within the
next four weeks.



Commenting on the transaction, Duncan McIntyre, Chief Executive of Morse plc,
said:



" The acquisition of Techsol will provide Morse Germany with the ingredients to
establish it as a better balanced and more robust business, with increased
scale, enhanced skills and improved regional presence. This is an important step
for Morse and we believe that Techsol will help us deliver a profitable and
improved, integrated German business."





Ends




Duncan McIntyre, Chief Executive                     Giles Sanderson
Gavin James, Finance Director                        Caroline Ledosquet
Morse plc                                            Financial Dynamics

Tel: [phone]                                   Tel: [phone]





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