RNS Number:8822Q
CRC Group PLC
14 October 2003


                                 CRC GROUP PLC


ANNOUNCES A SIGNIFICANT EXPANSION IN EUROPE WITH NEW CONTRACTS WITH AN ESTIMATED
                              VALUE OF #55 MILLION


   Contracts to be serviced from Siemens Business Services' Repair Centre and
     Wincor Nixdorf Engineering GbmH in Germany; acquired for a total cash
                             consideration of #1.2m


CRC Group plc, the AIM quoted after market service provider, today announces a
significant expansion in Europe with new contracts with an estimated value of
#55 million secured with Wincor Nixdorf, Siemens Business Services and Fujitsu
Siemens Computers and the proposed strategic acquisition of the German IT repair
centres of, Siemens Business Services, Paderborn and Wincor Nixdorf Engineering
GmbH, Berlin, for a total cash consideration of #1.2m.


These acquisitions represent a significant step in line with the Group's
strategy to expand its IT operations and to seek value enhancing acquisitions to
extend its geographical reach and customer base.


Siemens Business Services' Repair Centre


Siemens Business Services' repair centre currently provides repair services to
Siemens Business Services, Fujitsu Siemens and Wincor Nixdorf for a range of
products including laptops, printers, cash machines and EPOS equipment. It has
180 employees and in the year to 30 September 2003 had sales of approximately
#17.0m.


CRC propose to acquire the assets of the Paderborn Repair Centre for a cash
consideration of #0.8m, which is equivalent to the net assets of the business.


Wincor Nixdorf Engineering GmbH


Wincor Nixdorf Engineering GmbH provides repair services for a range of
multivendor products. Operating from Berlin, it has 32 employees. The business
has historically been run to break even at the operating level and in the year
to 30 September 2003 its sales were #5.4m.


CRC propose to acquire the entire share capital of Wincor Nixdorf Engineering
GmbH for a cash consideration of #0.4m, net of the #0.8m cash held within the
business, which is equivalent to the net assets of the business.


Both of these acquisitions will be funded from existing CRC cash resources and
all historical pension benefits already earned by employees have been funded by
the former employers. The effective completion date for both of these
transactions will be 1st December 2003, following an employee consultation
process.


#55m Contracts Secured


In addition to the acquisitions outlined above, CRC has secured 3 year contracts
with Wincor Nixdorf and Siemens Business Services and a 1 year contract with
Fujitsu Siemens Computers with an estimated value of #55 million at current run
rates.


Following these acquisitions and the contracts secured, the Group's IT business
will represent approximately 45% of Group turnover (Year to 31 December 2002:
17%), whilst the Communications business will represent approximately 35% (2002:
75%) and the Home Gateway business will represent approximately 20% (2002: 8%).


Commenting on these acquisitions Alan McLaughlin, CEO of CRC Group said:


"These acquisitions represent a significant step towards our ambition of
becoming the after market service provider of choice for Europe's market leading
brands in the communications, home gateway and IT sectors. The acquisitions are
of strategic importance to the Group as they will considerably improve the
balance of the Group's activities across its three core markets and, by
broadening the customer base, greatly reduce customer concentration.


"In establishing strategic partnerships with Siemens Business Services and
Wincor Nixdorf, two leading global companies in IT Services and Systems, we have
significantly enhanced CRC's presence in the IT market. This addition of a
foothold in Western Europe will provide opportunities to extend our
relationships with customers requiring a multi-country presence.


"The compelling opportunities that will to result from these acquisitions will,
therefore, ensure a stronger platform for the Group's long term growth."


Neil Allpress, Executive Vice President of Siemens Business Services commented:


"We are pleased to be entering into this partnership with the CRC Group. CRC's
strength in IT after market services and its ambition to expand in Europe make
it a strong new parent for our repair centre activities which we no longer
consider to be a core asset."


Stefan Auerbach, Senior Vice President Services of Wincor Nixdorf commented:


"We are looking forward to having a good partnership with CRC. The company is
recognized as a strong player in the repair business and we are convinced that
we are going to work very effectively with this company for the benefit of our
customers".



For further information, please contact:                      www.crc-group.com

CRC Group plc                                                     01844 261900
Alan McLaughlin, Chief Executive                                  01844 261900
Chris Matthews, Finance Director

Weber Shandwick Square Mile                                      020 7067 0700
Chris Lynch / Katie Hunt





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