Acquisition

RNS Number:7471C
CybIT Holdings PLC
24 August 2007



                               CYBIT HOLDINGS PLC

                       CYBIT STRENGTHENS UK BUSINESS WITH
                             #4 MILLION ACQUISITION

Cybit Holdings Plc, ("Cybit") one of Europe's leading online Telematics service
providers, today announces the acquisition of Amatics Limited ("Amatics") a
privately owned UK based telematics company for #4 million, with the possibility
of an additional #2 million payable as an earn out over the next 2 years.

Amatics is one of the UK's leading telematics service providers to the utility
services sector and among local authorities. It currently has circa twenty five
long-term customers, who between them have approximately 4,000 installed units.
Key customers include Scottish Water, South East Water, Monmouthshire Council,
South Cambridgeshire Council and Argyll and Bute Council. Many of its customers
integrate telematics data into their internal infrastructure including
customized GIS applications for applications including gritting and gully
emptying.

The existing Amatics management team is joining Cybit and will help drive the
continued expansion of the combined business. Amatics currently has a committed
future revenue stream of approximately #1.7m from existing customer contracts
and the board of Cybit believe Amatics will bring a strong pipeline of future
business from both existing customers and new prospects.

As a result of the acquisition, Cybit will have more than sixty customers in the
public (local and national government) and private (utilities, health and
housing) sectors. Given the larger scale of the business, Cybit intends to
create a separate sales unit to focus on growing business in this sector.

During 2006, Amatics achieved revenue of #3.3 million, gross profit of #1.7
million, EBITDA of #1.6 million and EBIT of #1.3 million. As a result of the run
out of a number of older contracts, revenues for the current year are expected
to be below 2006 levels.

Cybit expects to achieve a significant reduction in external operating costs
associated with delivering this service through increased economies of scale and
group buying power.

The initial #4 million consideration will be satisfied by: (i) the payment of
#3.5 million in cash, #3.25 million of which is payable on completion and
#250,000 of which is payable over 5 months from 1 October 2007; and (ii) the
issue of 962,000 new shares in Cybit at 52p each (the "New Ordinary Shares").
The existing cash balance of Amatics is approximately #3.3 million. Therefore,
on completion the acquisition will be cash neutral as Cybit will effectively be
paying cash for Amatics' existing cash balance. In addition, an earn out of up
to #2 million is to be paid against achievement of certain performance targets
during the the periods (i) from completion to 31st March 2008 and (ii) 1st April
2008 to 31st March 2009.

Application has been made to the London Stock Exchange for the New Ordinary
Shares to be admitted to AIM and it is expected that admission will take place
on or around 30 August 2007. The New Ordinary Shares will rank pari passu with
the existing shares of the Company. Following the allotment of the New Ordinary
Shares, the total issued share capital of Cybit will be 23,172,377 ordinary
shares.

Richard Horsman, Chief Executive of Cybit commented,

" We are delighted to announce the acquisition of Amatics. This is a high
quality business with an excellent reputation for delivering quality solutions
underpinned with exceptional customer service within the Utility and Local
Authority markets.

" With existing Cybit customers such as South West Water, Aberdeenshire Council
and Sunderland Housing, Cybit has quietly been building a significant installed
base in this sector. We are confident that the integration Amatics with the
resultant creation of a specialist team focused on this growing market segment
will both grow revenues from the existing base and attract new clients from
within the sector.

" The Amatics business and philosophy fits well with the rest of our UK group
operations. Amatics is well established and has built an excellent reputation
and customer base in the utility services and local authority market. Moving
forward, this is an important market segment for the group, where we anticipate
a significant growth in demand for our Telematics based solutions.

" We are committed to growing the scale of Cybit through both acquisitions and
organic growth. The market remains extremely fragmented with no clear leader. We
are focused on creating a group with scale and a broad base of operations across
key strategic markets. This is now our third sizeable acquisition in little over
a year. We have a successful track record of delivering shareholder value
through identification of suitable targets and quickly integrating them into the
Group. Cybit has now reached a level of critical mass where the consolidation of
similar businesses can make a significant contribution to both top line and
bottom line growth."

                                     -ends-


Date: 24 August 2007
For further information please contact:

Cybit Holdings Plc                 cityPROFILE            KBC Peel Hunt Ltd
Richard Horsman, Chief Executive   Simon Courtenay        Richard Kauffer
Kevin Lawrence, Finance Director   William Atwell         Oliver Stratton
Tel: [phone]                  Tel: [phone]     Tel: [phone]



About Cybit:


Cybit, a global force in Telematics operates within three core sectors:
Internet-based vehicle Telematics solutions; Economic Exclusion Zone (EEZ)
Management; and Private Mobile Radio (PMR) based asset tracking and precise
positioning solutions.

In the vehicle Telematics sector, Cybit is one of Europe's leading Telematics
Service Providers (TSPs). More than 1,500 business to business clients use our
fleet and asset management solutions to manage in the region of 35,000 assets.
Solutions include in-vehicle technologies, work flow management and
internet-based monitoring and reporting software. The company also provides
consulting services to advise on legal issues such as duty of care and working
hours.

Their newly-acquired PMR business, Cybit Positioning Solutions, provides
asset-tracking solutions for both maritime and land-based applications including
exploration and mining. Its precise positioning solutions assist in the location
and exploitation of oil, gas and mineral reserves around the globe.



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

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