RNS Number:8891K
Tenon Group PLC
09 May 2003



                                Tenon Group PLC
                                        
                            ("Tenon" or "the Group")


                                    Disposal
                                        

Tenon Group PLC, the professional services group, today announces the disposal
of the Microsoft Great Plains relationships of Tenon Technology, a division of
the Group, to Touchstone Group plc ("Touchstone"), a leading IT services group
supplying integrated business solutions and services to mid-size UK companies.


Microsoft Great Plains is a sophisticated business software solution that Tenon
has supplied to over 50 customers over the last 5 years. The turnover generated
from this business in the year to December 2002 was #1.6m. Approximately
#750,000 of this turnover related to implementation fees and associated software
sales that are not expected to be repeated in future years. The estimated gross
profit contribution for the year to December 2002 was #350,000. No tangible net
assets are being transferred to Touchstone. The transaction will have a positive
effect on the total cost base of Tenon but is unlikely to have any additional
impact on net earnings.


In addition to the responsibility of supporting Tenon's Great Plain's clients,
this agreement also establishes a trading relationship between both
organisations to expand their respective portfolio of products and services.


The agreement, which is cash-based, is phased over a 2-year period with total
consideration capped at #750,000. The deferred element of #325,000 will be
payable once target levels of profitability over the two year period have been
achieved.


Andy Raynor, Chief Executive of Tenon Group, commented:


"Tenon's re-focus on core services combined with Touchstone's 21-year pedigree
in supplying sophisticated business solutions will ensure our Great Plain's
clients will receive the best possible service going forward. This transaction
reinforces Touchstone's dominant position within the Microsoft Business Solution
market place and importantly will allow Tenon to work with a partner who is
totally committed to customer service. The benefits to both companies are likely
to extend well beyond the terms of this agreement."


Keith Birch, Managing Director of Touchstone added:


"Like Touchstone, Tenon has applied a professional and capable approach to the
supply and service of its Great Plains clients. We are extremely pleased to have
their clients and staff on-board and look forward to working with Tenon in the
future."


                                                                      9 May 2003





ENQUIRIES:

Tenon Group PLC                                               Tel: 020 7499 1666
Andy Raynor, Chief Executive

College Hill                                                  Tel: 020 7457 2020
Kate Pope

Touchstone Group plc                                          Tel: 020 8441 7755
Keith Birch, Managing Director

Holborn Public Relations                                      Tel: 020 7929 5599
David Bick




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

END
DISEAXSPESSDEFE