Acquisition

RNS Number:0788T
Jourdan PLC
16 March 2007

FOR IMMEDIATE RELEASE

                                                                   16 March 2007

                                  JOURDAN PLC

 ACQUISITION OF PRIME PACKAGING LIMITED BY NELSONS LABELS (MANCHESTER) LIMITED

Jourdan plc ("Jourdan") announces that its wholly owned subsidiary, Nelsons
Labels (Manchester) Limited ("Nelsons"), a manufacturer and supplier of
specialist labels to the bedding, upholstery and carpet industries, has acquired
the entire issued share capital of Prime Packaging Limited ("Prime Packaging")
from its existing owners, Naim Butt and Noshaba Butt, for a consideration equal
to the aggregate of #700,000 and the value of the net tangible assets of Prime
Packaging ("Net Asset Value") as at 15 March 2007. The Net Asset Value is to be
determined shortly through the preparation of completion accounts, but is
expected to be in the region of #900,000.

Of the total consideration payable for Prime Packaging, #1 million is payable in
cash on Completion. To the extent that the aggregate consideration, following
determination of the Net Asset Value exceeds #1,550,000, 50% of the amount by
which the total consideration exceeds such sum will be payable in cash within
three business days of determination of the Net Asset Value. The balance of the
consideration ("the Deferred Consideration") will be payable in 8 equal
quarterly instalments following completion, although the Deferred Consideration
will be subject to downwards only adjustment in the event that the combined
revenues achieved by Nelsons and Prime Packaging in the two years following
Completion do not meet certain levels. Payment of the Deferred Consideration by
Nelsons when due has been guaranteed by Jourdan.

Prime Packaging is a private company based in Bradford and its business of the
design and manufacture of fabric labels and sale of the same to UK and European
markets is complementary to that of Nelsons. As a small company, Prime Packaging
publishes abbreviated accounts and is not required to conduct an audit of its
financial results. According to its unaudited financial statements for the year
ended 31 August 2006 Prime Packaging reported net assets of #712,825 at the
financial year end. Its unaudited profit on ordinary activities before tax for
the year ended 31 August 2006 was #479,028, although the directors of Jourdan
believe a number of factors related to Prime Packaging being a small privately
owned company have resulted in this figure being substantially higher than would
be reported in the context of a publicly owned company. These factors include,
for example, that certain employees did not draw remuneration during the period
in question. The directors of Jourdan believe that going forward, Prime
Packaging is capable of generating annual maintainable profit before tax of in
the region of #200,000 per annum.

The funding for the acquisition is being sourced from existing lines of credit
available to the group. The board of Jourdan expects that the acquisition of
Prime Packaging will be earnings enhancing for Jourdan in first full year
following completion.

On completion of the acquisition of Prime Packaging, Mr Butt will be appointed
to the board of Nelsons and will serve as sales director for the enlarged
Nelsons business.

For further information, please contact:

Jourdan plc
David Abell, Chairman
01476 403456


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