DCM Dicom Group

RNS Number:5333M
Dicom Group PLC
25 January 2008


Regulatory Announcement

DICOM Group plc

Business Update


Basingstoke, 25 January 2008 - DICOM Group plc ("DICOM"), a leading provider of
Intelligent Capture & Exchange solutions, submits the following update on its
business activities.


Current trading


DICOM expects its results for the six months ended 31 December 2007 to be in
line with expectations. The Company has achieved its stated target of double
digit revenue growth in constant currencies in its software business with a
higher than expected contribution from software services offsetting lower growth
in software licenses in the second quarter. The results will be announced on 18
February 2008.


Strategic review


On 5 November 2007, Reynolds Bish joined DICOM as CEO. Since his arrival, Mr.
Bish has conducted a thorough review of the strategy, structure and branding at
the company. Following this review it is clear that certain additional measures
are now needed to accelerate progress with DICOM's stated strategy of focusing
on the software license and services portion of its business.


As a result of Mr. Bish's analysis, DICOM's organizational structure will be
reorganized to better align and focus its resources. In the past, most line and
staff functions were decentralized and widely distributed throughout the world,
with both regional and country managers acting as general managers and being
responsible for all of these functions and for revenue generation. With this
reorganization, all line and staff responsibilities will be consolidated into
vertically aligned, worldwide functions under global managers reporting to Mr.
Bish. The essential purpose is to execute in a more consistent and cost
effective manner and to focus management efforts more clearly on revenue
generation activities.


In addition, DICOM's sales function will be reorganized to better align and
focus its resources. In the past, the sales function was decentralized and
widely distributed throughout the world, with regional and country managers
being responsible for selling all of the company's products. With this
reorganization, the sales function will be separated into three groups better
aligned with DICOM's products, markets and customers, namely: (1) software and
solutions, (2) OEM software, including the market leading embedded VRS
technology, and (3) European hardware distribution business. To further optimize
this structure and improve sales productivity over time, the company has
initiated a search for an Executive Vice President of Worldwide Field Operations
to manage the sales function on a global basis, who will be based in Irvine,
California and report to Mr. Bish.


As part of these changes, Urs Niederberger, DICOM's Chief Operating Officer and
an Executive Director, will leave the company as of 15 February 2008 and stand
down from the Board of Directors immediately. The Board extends its thanks to
Mr. Niederberger for his valuable contributions over the past ten years and
wishes him well in his future endeavours.


Brad Weller has been appointed as General Counsel, and Company Secretary with
immediate effect, replacing Stefan Gaiser, who remains the CFO and an Executive
Director of the Company. Mr. Weller has had a very successful career both
working as an attorney at a law firm and as an in-house attorney at a number of
publicly-held technology companies, including Captiva, where he worked for Mr.
Bish as General Counsel.


Also as a result of this review, the Board is proposing to change the name of
the company to "Kofax plc". There has been confusion both internally and
externally over the various brands used by the company in the past, many of
which have arisen through acquisition. Among all DICOM brands and products,
Kofax clearly emerges as the brand with the highest awareness among stakeholders
on a worldwide basis, having been recognised as the leading capture software for
the past twenty years. Furthermore, the respected products and innovations that
have emerged from Kofax most closely define the direction in which the company
is now heading.


As a consequence of the corporate rebranding and restructuring, DICOM will make
approximately 50 redundancies, close certain facilities and record an
exceptional charge of �3.5 to �3.8 million in the second half of financial year
2008. This is expected to result in significant annual cost savings and allow
the Board to increase investment in the company's software and solutions
business.


A Notice of Meeting will be sent to shareholders to convene an Extraordinary
General Meeting at 11.00 am, 18 February 2008 at the offices of Landsbanki to
seek shareholder approval for the proposed name change. If shareholders approve
the new name, DICOM's ticker symbol on the London Stock Exchange is expected to
change from 'DCM' to 'KFX' with effect from 19 February 2008. The ISIN number
for the company's shares would remain unchanged.


For further information, please contact:


DICOM Group plc                                           FD


Stefan Gaiser           CFO                               James Melville-Ross
Gabriele Rosenbusch     Head of Investor Relations        Juliet Clarke

Tel:  +44 (0) 800 6520 616                                Tel :  +44 (0) 20 7831 3113

e-mail:  stefan_gaiser@dicomgroup.com                     e-mail: dicom@fd.com

         gabriele_rosenbusch@dicomgroup.com


About DICOM Group plc


DICOM Group plc (London Stock Exchange: DCM) is a leading provider of
Intelligent Capture & Exchange solutions. For more than 20 years, DICOM has
provided award-winning solutions that automate document-driven business
processes by managing the transformation and exchange of business-critical
information arising in paper, fax and electronic formats in a more accurate,
timely and cost-effective manner. These solutions provide a verifiable return on
investment to thousands of customers in financial services, manufacturing,
retail, government, healthcare, business process outsourcing and other markets.
DICOM delivers these solutions through a global network of more than 1,200
authorised partners, and its own sales and service organisations in the more
than 60 countries throughout the Americas, EMEA and Asia Pacific. For more
information, visit www.dicomgroup.com.


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