CLX Calnex Solutions Plc

RNS Number:1593T
Calyx Group PLC
26 October 2005


FOR IMMEDIATE RELEASE                                            26 October 2005


                                Calyx Group plc

                                   ("Calyx")

                          Expansion into the UK market

Calyx, the largest single-source provider of information and communication
technology ("ICT") network solutions throughout Ireland, today announces the
acquisition of ITS Technology Services Ltd ("ITS"), a UK-based IT infrastructure
services Company for a total consideration of #2.5 million (Euro3.68 million).
Under the terms of the agreement #1.88 million (Euro2.76 million) will be paid in
cash and #120,000 (Euro176,000) in shares (based at Friday's closing price of 65.5p
per share). There is also a #500,000 (Euro735,000) earn-out split #380,000
(Euro559,000) cash and #120,000 (Euro176,000) in shares in March 2006 subject to
agreed performance criteria.

The acquisition of ITS represents Calyx's first move into the UK ICT market and
will allow Calyx to leverage off ITS's existing relationships with vendors such
as Cisco, Nortel and Microsoft. Calyx will be deploying its innovative managed
service offering, from its new state-of-the-art Network Operating Centre, via
ITS to the existing UK customers and also into new customers.

ITS is already an established provider of converged voice and data solutions for
the healthcare, publishing, emergency services and government market, and whose
clients include: St. Ives Group plc - the leading print press company;
Associated Newspapers Ltd - a subsidiary of the Daily Mail and General Trust
plc; Gwent Healthcare NHS Trust - one of the largest and busiest NHS Trusts in
the UK.

ITS was formed in 2002 through an MBO of the UK technology services division of
Intergraph, the global provider of spatial information management (SIM)
software. The MBO was led by Managing Director Kieran Archer and Sales Director
Andy McCathie, both of whom will remain with the enlarged Company.

The Calyx board of directors believe that ITS has good synergies with Calyx's
already strong Irish business as well as a strong and established management
team, which will help the Calyx Group develop in the UK. Currently there are no
plans for redundancies resulting from the acquisition but, conversely, further
investment and growth is expected as the Calyx brand is rolled out within the
UK.

In the year ended 31 December 2004 ITS had revenues of #3.12m (Euro4.6m), profit
before tax of #0.45m (Euro0.65m) and net assets worth #52,000 (Euro76,000).

Calyx is expecting to make further investment over the next 12 months in order
to provide ITS with the capability to deliver Calyx's advance solutions based
around compliance and remote managed services. In addition this investment will
enable ITS to broaden its customer reach and increase its market share.
Thereafter, the acquisition is expected to enhance Calyx's earnings per share.

Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said;

"I am delighted to announce this ITS acquisition - our first to bring Calyx into
the UK market. It has always been our stated intention, from the time of our
IPO, to launch and develop in the UK market and the acquisition of ITS provides
the ideal springboard from which to do this. ITS has an experienced and well
regarded management team who will expand and develop the Calyx offering across
the UK market. ITS also has a strong customer base which we plan to develop and
grow through the introduction of Calyx's advanced remote managed services."

"The ITS acquisition is another step in the execution of Calyx's strategy to
provide advanced infrastructure to its customers. Following the acquisition of
Convergent in July and of QCL last week Calyx now occupies a strong market
position within Ireland and we now believe we are in a good position to focus on
the buoyant UK ICT market."

                                     -ENDS-

For further details please contact:

Calyx Group plc                                Tel: +353 1 676 3363
Maurice Healy, Chief Executive

Buchanan Communications                        Tel: +44 (0)20 7466 5000
Tim Thompson / James Strong                  


Notes to Editors

This is the second acquisition announcement by Calyx in recent days. On
Thursday, they announced the acquisition of QCL, the Cork based IT product and
services company for a total consideration of Euro1.283 million (#871,000).




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

END
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