CED Close Enhanced

RNS Number:2401A
Cedar Group PLC
4 NOVEMBER 1999


Cedar Group Plc ("Cedar" or "the Company")
Acquisition  of the Financial Management System  Division
of PPSL Ltd ("FMS")

The  Company  is pleased to announce that is has  reached
agreement to acquire FMS from PPSL Ltd.  PPSL  Ltd  is  a
subsidiary  of Leading Software Ltd, a UK-based  software
and  services group.  The acquisition has been  purchased
for   a  maximum  cash  consideration  of  #1.25m.    The
consideration  is  linked to the successful  novation  of
customer contracts and will be funded out of the proceeds
of   the  underwritten  rights  issue  announced  on   30
September 1999.

FMS  has been a leading provider of financial systems  to
UK  Local Authorities for more than a decade and  has  an
active base of more than 50 customers.  The division owns
and  develops  the  software that  it  markets  and  also
provides consultancy, project management and installation
services.   FMS is profitable with turnover in excess  of
#1.5m  in  1998  including  a  high  level  of  recurring
maintenance and support revenues.

The   acquisition  of  FMS  provides   Cedar   with   the
opportunity to continue the rapid growth of its  business
in  the  UK  local government market, a sector  which  is
investing significantly in Information Technology.  Cedar
has  a  long  history of providing financial  systems  to
local authorities and is also actively marketing its Call
Centre  and  Businessflow products into these  customers.
The  FMS  employees bring to Cedar a wealth of experience
and  expertise of financial systems and local government.
FMS  has  designed some modules specific to the needs  of
Authorities which Cedar will absorb into its own  product
family  as  part  of its plan to encourage  customers  to
migrate to Cedar Financials.

At  the  same  time Cedar is also pleased to  announce  a
strategic  relationship between Cedar and Orbis  Software
Ltd  ("Orbis"),  a  subsidiary of Leading  Software  Ltd.
Orbis  specialises in the development of Human  Resources
systems  and  this  partnership will  add  the  Orbis  HR
products  to the Cedar portfolio.  This move  is  another
important step toward Cedar's aim to emerge as a provider
of  complete  solutions to enterprise-wide problems.   In
addition   Leading   Software  Ltd  will   market   Cedar
Financials as a part of its own ERP (Enterprise  Resource
Planning) offering into its chosen markets.

Mike Harrison Managing Director, commented:

"FMS is a quality software and services business with  an
extensive  customer  base that offers  significant  cross
marketing  opportunities for Cedar  Group  products.   We
believe  that this strategic acquisition will make  Cedar
the  largest  supplier of finance  systems  to  UK  Local
Authorities.

I  am  also  excited  about our link  with  Orbis.   This
agreement  represents another important step towards  our
aim  of  establishing  Cedar as a  provider  of  complete
solutions to enterprise wide problems."


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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