CED Close Enhanced

RNS No 7378w
CEDAR GROUP PLC
8 October 1999


Cedar Group Plc ("Cedar" or "the Company")
Completion of the acquisition of PMpL Limited ("PMpL")

The Company is pleased to announce that it has agreed to
complete the acquisition of PMpL out of the proceeds of
the rights issue announced on 30 September 1999.  The
acquisition was announced on 7 January 1998 and involved
the stage payments of the consideration over three years
to 30 September 2001.  The performance of PMpL has
exceeded management's expectations and Cedar has
therefore agreed to accelerate the acquisition of the
entire share capital of PMpL.  In accordance with the
agreement dated 7 January 1998, Cedar will settle the
consideration by a payment of #5.47 million by 30
November 1999.

PMpL supplies specialised software and services to
support the movement of data and other information
between different computer systems.  They have been very
successful in large projects with companies like Norwich
Union, Abbey National and the Prudential covering
administration system migrations, Customer Relationship
Management (CRM) implementations and management
information databases.

Following the completion of Millennium projects, many
companies are considering the introduction of new
administration systems, along with a move to customer
focused sales, marketing and servicing.  Hence, the need
for migration services is set to increase both in the UK
and in North America, which is the primary focus for
Cedar.

The acquisition of PMpL, together with the recent
acquisition of Firmin Jack Limited, which supplies
project management and consultancy services relating to
software application installations, strengthens and
complements Cedar's existing services and consultancy
business.  These acquisitions provide Cedar with a
significant opportunity to develop and expand this
business in an important and growing market.

For the six months ended 31 March 1999, PMpL's turnover
amounted to #1.7 million and profit before tax was #0.33
million.  As at 31 March 1999, PMpL's net assets amounted
to #0.22 million.

Mike Harrison, Managing Director, commented:

"The acquisition of PMpL enables the Company to extend
its product capabilities in the growing market of data
migration and data warehousing and a further opportunity
to expand the Company's North American presence."


For further information please contact:

Michael Harrison  Managing Director
Mike Hosie  Group Finance Director
Cedar Group Plc                          01932 584 000

Russell Cook
Teather & Greenwood Limited              0171 426 9000


END

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