CED Close Enhanced

RNS Number:1921A
Cedar Group PLC
3 November 1999


Cedar Group Plc ("Cedar" or "the Company")
Acquisition of interest in Cedar US Inc. ("Cedar US")

The Company is pleased to announce that it has agreed  to
purchase  a further 59.5 per cent. of the Cedar US  share
capital  for  a  cash  consideration  of  #365,000.   The
acquisition  of  an  initial 15 per cent.  of  the  share
capital of Cedar US was announced on 18 June 1999.  Cedar
also  has  the option to acquire the remaining  25.5  per
cent.  of  Cedar  US  for a maximum consideration  of  $4
million  to  be  determined by reference  to  the  future
performance of Cedar US before March 2001.

The  Company currently operates within the US market  and
has  already enjoyed considerable success with  sales  of
Cedar  Financial  products  to  such  companies  as  Levi
Strauss,  Northern Air Cargo and Mountaire,  the  world's
largest   chicken   producer   and   distributor.     The
acquisition  of  Cedar US provides the Company  with  the
opportunity to develop and expand the important US market
by   providing   consultancy,  project   management   and
installation  services as well as building a  maintenance
annuity through the provision of support services.

There  is  a  significant new opportunity to develop  the
Company's  data  warehousing  offering,  created  by  the
recent   acquisition  of  PMpL  Limited.   Part  of   the
rationale for this acquisition is to extend the Company's
capability   to   the   North   American   market   where
deregulation in the US financial services industry should
provide  Cedar with a significant opportunity  to  repeat
its success in the UK market in the US.

In addition to its core applications that offer solutions
to  enterprise  level problems and its  data  warehousing
proposition, Cedar intends to increase its share  of  the
US market through the introduction of Cedar Businessflow,
the  enterprise  wide  knowledge management  system  that
provides document management and workflow processes.  The
system,  licenced  from Cedar's German  partner  COI,  is
currently  used  by over 300 international  organisations
such  as Deutsche Telekom and General Motors.  The  Group
believes that following the millennium many similar sized
organisations will wish to consider the implementation of
systems,  such as Cedar Businessflow, that  can  directly
enhance  the  efficiency or effectiveness  of  enterprise
level processes.

Mike Harrison, Managing Director, commented:

"Our  relationship with Cedar US and our  work  with  its
customers  over the past few years has demonstrated  that
we  have  products  and  services  that  are  of  growing
interest.   Furthermore,  the  acquisition  of  Cedar  US
provides  us  with a significant and low risk opportunity
to develop our presence in the important US market."

3 November 1999


For further information please contact:

Michael Harrison         Managing Director
Mike Hosie               Group Finance Director
Cedar Group Plc          01932 584000

Russell Cook
Teather & Greenwood Limited   0171 426 9000

Shane Dolan
Biddick Associates            0171 377 6677

END
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