Placing and Acquisition

RNS Number:6082S
Electric Word PLC
28 November 2003



                               Electric Word plc

                                  ("Company")

                            Placing and Acquisition

Electric Word plc, the specialist professional development publisher, announces
the acquisition of pfp publishing Ltd (pfp) for a cash consideration of #1.1m.

The consideration will be funded by the placing of 16,640,000 new ordinary
shares in the Company at 6.25p per share, to raise #1.04m before expenses. The
balance of the consideration will be funded from Electric Word's existing cash
resources. Dealings in the new ordinary shares issued under the placing are
expected to commence on 1 December 2003.

Pfp - primary file publishing - publishes nine loose-leaf files sold on
subscription to the schools market, one of Electric Word's key market sectors,
and a range of supporting books and classroom materials.

"We have been following this business for some time," commented Electric Word
Chief Executive Julian Turner. "It is a very close fit with our existing
subscriptions and conference business in schools; pfp's traditional strength in
primary schools neatly complements our Optimus newsletters, most of which are
aimed at the secondary school market. And as the acquired titles are more
established than many of our existing portfolio, the deal will significantly
advance Electric Word's profitability."

Chris Kington, former Vice-Chair of the Education Publishers Council and
Electric Word's director for education publishing, will be taking on pfp's
stable of established and respected products: "After a year of energetic organic
growth, with seven successful new launches, this acquisition accelerates our
growth by bringing in nine new subscription products, many of which are in
management or curriculum areas that we had already targeted for strategic
development. The opportunity is to combine some super products with our
marketing and publishing systems - disciplines in which we believe we are second
to none in this market."

Pfp is Electric Word's fourth acquisition since floating in March 2000. Optimus
Publishing Ltd was acquired in May 2000, Lottery Monitor Ltd in July 2000 and
the education books division of The Stationery Office in November 2001. In the
year ended 31 March 2003, following a significant investment in new products,
pfp produced a loss before tax of #1,157, excluding directors' fees and
drawings, on a turnover of #1,130,991. At 31 March 2003, net liabilities were
#90,240.

The Company also takes the opportunity to report that trading has been in line
with or ahead of expectation in all markets. It has been a particularly
encouraging start to the new school year, with the fourth quarter heading
towards being the Company's best ever for new subscription and conference orders
from schools, driven by the successful launch of three new newsletters and a
number of first-time events.




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