CED Close Enhanced

RNS No 3925u
CEDAR GROUP PLC
1 October 1999


       CEDAR GROUP PLC ("CEDAR" OR THE "COMPANY")
                            
 CEDAR JOINS FORCES WITH COMPAQ AND MCI WORLDCOM FOR E-
                        SOURCING

Cedar, Compaq and MCI WorldCom have announced their new e-
sourcing  service,  based  on  the  Application   Service
Provider ("ASP") model.

The  move  is  designed  to  offer  companies  access   to
enterprise-level  applications without associated  set  up
and  maintenance costs. e-Cedar, a new division of  Cedar,
will  deliver the Company's Cedar Financials software over
secure  networks using Internet technology. This  will  be
followed  by the provision of browser-based timesheet  and
expense  entry applications, backed up by powerful project
and accounting systems.

Following  the  launch,  e-Cedar  plans  to  extend   its
financial ASP offerings to incorporate workflow, CRM  and
knowledge management applications.

The processing technology platform and operations will be
provided  by  Compaq and its partners. MCI WorldCom  will
provide  the secure, managed network backbone over  which
the  service  will be delivered. In the UK, Equinox  will
provide the managed connectivity to all customer sites.

Delivery  of secure network access has been a fundamental
issue  for  the  network architecture, developed  by  MCI
WorldCom and Equinox. The service will be based on one of
the  first  networks  in the world to  deploy  innovative
firewall technology which will provide levels of  network
security previously unattainable by an ASP.

The service will be provided at a known monthly cost,  be
governed  by a Service Level Agreement ("SLA"), and  will
eliminate  the  cost and effort involved in  running  and
maintaining  an in-house operation. It will operate  from
the  UK,  but  be accessible securely on a global  basis.
Further   announcements  will  be  made  concerning   the
delivery of a consistent service oriented specifically to
US customers.

For  Small-to-Medium  sized organisations,  e-Cedar  will
provide  the  function  and power of  enterprise  systems
previously only affordable to large corporations.

Large   national   or  multinational  organisations   can
securely  and reliably extend the reach and functions  of
their   existing  systems.  By  providing  the  necessary
enterprise-wide  application  framework,   e-Cedar   will
enable  complex  organisations to reap  the  benefits  of
integrated  enterprise systems, but  still  maintain  the
balance between local autonomy and central control.

"The  huge  growth  of  the  Internet  and  other  network
services  has created the opportunity for cost  effective,
reliable   and   secure   electronic  business-to-business
services," said Mike Harrison, managing director at Cedar.
"Through   this   offering,  we  aim  to  put   enterprise
applications within the reach of all companies, regardless
of size and resources. The high calibre of our partners in
this  venture  proves  that  e-Cedar  not  only  has   the
potential  to  emerge  as  a  true  leader  in   the   ASP
marketplace, but also has the capability to deliver."

"Our   involvement  in  this  exciting  initiative  is   a
testament to the speed, reliability, reach and security of
our  new  national  network,"  said  Michael  Butler,   UK
managing director at MCI WorldCom.

A   pilot  project  involving  major  components  of  the
service,  at the UK Atomic Energy Authority (UKAEA),  has
proved  both  highly successful and secure,  allowing  IT
staff to concentrate on delivering higher levels of  core
internal function and service.

Andrew  Binns,  director, Compaq  Professional  Services,
said: "The use of business applications over the Internet
demands  24  x  365  availability.  Customers  will   not
tolerate  delays  or  downtime. As  a  global  leader  in
Internet  computing,  Compaq NonStop  enterprise  hosting
services  provide a unique scalable and safe  environment
to deliver business critical services that are online all
the time."

Pilot testing of the initial service portfolio is planned
for   completion  by  year-end,  with  orders  from   new
customers accepted from January 2000.


Enquiries:

Cedar Plc                01932 584 000
Mike Harrison, Managing
Mike Hosie, Finance Director

Teather & Greenwood Limited   0171 426 9000
Russell Cook

Biddick Associates       0171 377 6677
Zoe Biddick
Shane Dolan


END

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