RET Retec

    4 December 2006

                   Retec Digital acquires Media 4 UK Limited                   

Retec Digital PLC ("Retec" or "the Group"), the in-store digital marketing
company, is pleased to announce the acquisition of the entire issued share
capital of Media 4 UK Limited ("Media 4"), a company that provides hardware
installation and maintenance services to Retec's clients, for a total
consideration of �192,500 in cash.

Media 4 was founded in January 2003 and is based in Bedford. It operates almost
exclusively for the Group providing hardware installation and maintenance
services to Retec's clients. Given the strong pipeline in Retec's business from
customers such as Sainsbury's and Tesco, the addition of this engineering
expertise to the Retec Group will enable the Group to offer its customers more
innovative and cost effective digital solutions as part of an end-to-end
solutions package. In particular, where multiple applications and devices are
provided to the same customer, it is anticipated that the economies of scale
will provide significant cost reductions whilst at the same time improving
margins for Retec. Media 4 will retain its name and will operate as a separate
subsidiary within the Retec Group.

Retec has paid �192,500 in cash for 100 per cent. of the issued share capital
of Media 4. In the year ended 31 December 2005, Media 4 had turnover of �
273,409 and a profit before taxation of �25,236. At 31 December 2005, Media 4's
net assets were �18,740. The acquisition is expected to be earnings enhancing
within the first year of operation.

Commenting on the acquisition, John Cole, Chief Executive Officer of Retec,
said:

"We are delighted to have acquired Media 4, which adds a new portfolio of
services to our customers. Retec's expertise lies in in-store digital marketing
and Media 4's is focussed around the maintenance of the screen itself. By
bringing this business into the Group, we can offer our clients more value in
the solutions we provide to them. We look forward to working with Media 4."

Retec Digital                                                    01462 482944
                                                                             
John Cole / Charles McKay                                                    
                                                                             
Charles Stanley                                                 0207 149 6000
                                                                             
Mark Taylor / Henry Fitzgerald O'Connor                                      
                                                                             
Hogarth                                                         020 7357 9477
                                                                             
Georgina Briscoe / Charlie Field                                             

Notes to Editors:

Retec Digital PLC provides retailers with an in-store digital marketing package
designed to increase core sales, provide additional revenue over and above
this, improve cost control and customer satisfaction.

The Company's solution comprises three basic components: plasma screens for
general in-store advertising; shelf-edge interactive systems activated by touch
screen, keyboard or bar-code; and shelf-edge broadcast systems sited next to a
specific range, carrying advertising and promotional content on these products.

It already has systems installed in major retail chains including Sainsbury's,
WH Smith, Tesco, Boots and Woolworths.

Flexible and versatile, Retec's solution can incorporate a mixture of advanced
products within its range. These include:

Entertainment Xtra - a communications channel incorporating the range of the
company's system aimed at promoting home entertainment products such as music,
films, games and books. Other customers include Sainsbury's, Tesco and WH
Smith.

Product Finder - this is used to locate any product within a store and can be
used in conjunction with other applications within the company's portfolio.

Guided Selling - a touch screen providing audio/visual information/instruction
on products at the point of sale. This is currently installed on behalf of
beauty products group L'Oreal in 125 Boots stores in UK and in the Netherlands
and Republic of Ireland.

Electronic Top-up - a generic term for the use of a terminal for a transaction
by a customer. Retec's product suite has the ability to top up a mobile phone,
sell mobile phone content (games, logos etc), purchase of gift cards and
interaction with loyalty schemes. Customers of this product type are Boots and
Woolworths.

Display Networks - consists of a number of plasma screens linked together to
broadcast content. At present, installed in Sainsbury's Bank, it is worth some
�0.3million annually to Retec.

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