IDD ID Data

RNS Number:3881X
ID Data Group PLC
30 May 2007



Press Release                                                        30 May 2007


                               ID DATA GROUP PLC

                          ("ID Data" or the "Company")

                             Acquisition Completion


ID Data Group Plc (AIM:IDD), the smart card solutions and outsourcing business,
announces that on 25 May 2007, it completed the acquisition of the business and
assets of CredEcard plc ("CredEcard"), the pre paid card service provider, for a
total consideration of up to #725,000 in cash and shares, subject to the new
business achieving specified performance objectives over the next two years.

The initial consideration comprises 25 million ordinary shares of 1p in ID Data
("Ordinary Shares"). Application has been made for the new Ordinary Shares to be
admitted to trading on AIM and it is anticipated that dealings will commence on
1 June 2007.

Highlights

- European market for pre paid cards is estimated to reach 360 million cards by
  2010
- ID Data moves up the "value chain" and into financial services
- ID Data's key relationship with MasterCard(R) strengthened
- Acquisition is expected to enhance future profitability of the group
- Additional funds to be raised to allow more rapid development of the pre paid
  business


Commenting on the acquisition, Peter Cox, CEO of ID Data Group plc, said:

"Completing the acquisition of the CredEcard business puts ID Data further up
the "value chain" as the Company can now offer a full range of financial
services in the rapidly expanding pre paid card business, under the CredEcard
brand. The pre paid market is growing at a dynamic rate and the future for
businesses servicing this sector is exciting. We are now in a position to
aggressively tackle this market opportunity, in a sector that, historically, has
enjoyed higher profit multiples than our core card related businesses. The
acquisition will also allow us to further develop opportunities with our
existing European customers in retail, government, leisure and banking."

The completion of this acquisition gives the ID Data group three core business
units:

- ID Data Limited, the card solutions business, servicing the card products and 
  solutions needs of the retail, banking and government sectors.

- CardBase Technology Limited, the card management software company focusing on 
  multiple application smartcard management in the ID, passport and complex 
  cards solutions markets.

- CredEcard plc, our pre paid financial services business.

Further information

The pre paid card market is expected to grow rapidly with MasterCard estimating
that there will be 360 million pre paid cards in Europe by 2010 with billions of
Euros potentially being held in these card accounts.

The pre paid card solution allows non banked and banked individuals to enjoy the
facilities of a card account through the use of the Visa or MasterCard
platforms.

The card can be used for receipt of travel money, salary and benefit payments,
through to insurance companies paying claims using the card. Due to the
relationship with Visa and MasterCard, the pre paid card can be used globally
for everyday purchases and cash withdrawals.

The pre paid card business derives its revenues from programme management fees
on behalf of client companies as well as running consumer facing card issuance
programmes directly. Revenues come from the fees associated with cardholder
registration, usage and funding.

The acquisition is a rational extension of ID Data's strategy to become a
totally integrated solutions provider utilising its established MasterCard and
Visa accredited platform developed over the last seven years.

CredEcard invested heavily in creating a highly regarded capability, focused on
payroll solutions. The merger with ID Data affords the business access to funds
and enhanced credibility through the provision of a total solution. ID Data can
also funnel all of its pre paid prospects through the CredEcard platform.

ID Data has previously stated its objective of increasing its "value add" from
its strong client relationships, to include transaction processing and financial
services. The acquisition of the CredEcard business is a positive move towards
the provision of pre paid debit cards directly to consumers and will advance the
Company's strategy.

ID Data's combined pre paid business will use the CredEcard brand. CredEcard
will be run as an independent business unit within the ID Data group, so as to
afford all the group businesses continued independence of action when it comes
to commercial strategy and client relationships.

CredEcard and ID Data's combined capabilities will offer a competitive
alternative to existing schemes, with ID Data's core business providing the
capability of producing, processing and personalising cards quickly, giving
increased process control, cost reduction and service advantages.

Under the agreed terms of the acquisition, which is subject to a number of
conditions, ID Data will issue 25,000,000 new Ordinary Shares to CredEcard at 1p
per share as an initial payment with further contingent payments of up to
#400,000 in new Ordinary Shares and #75,000 in cash, subject to the business
achieving specified performance objectives over the next two years. In the year
ended 30 April 2006, CredEcard made an operating loss of #351,167 on turnover of
#567,347 and an operating loss of #571,170 on turnover of #173,335 in the six
months ended 31 October 2006. The book value of the assets being acquired by ID
Data pursuant to the acquisition is estimated to be approximately #0.1 million.

ID Data will seek additional funds in due course to allow for the rapid
development of this new business activity.

For further information, please contact:

ID Data Group plc
Peter Cox, Chief Executive                          
Tel: +44 (0)1730 235700
peter.cox@iddata.com

Smith & Williamson Corporate Finance Limited
Azhic Basirov / David Jones                                         
Tel: +44 (0) 20 7131 4000

Media Enquiries
Abchurch
Henry Harrison-Topham / Chris Lane                                  
Tel: +44 (0)20 7398 7700
henry.ht@abchurch-group.com




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