RNS Number:2874H
Cedar Group PLC
15 March 2000



             CEDAR GROUP PLC ("CEDAR" OR THE "COMPANY")

   Announces Placing to raise #40.2 million to fund further UK and US growth

Cedar is pleased to announce that it has conditionally placed 2,900,000 new
ordinary shares of 5p each at 1410p per share (the "Placing Shares") with
existing and new institutional investors, raising approximately #40.2 million
before expenses. This represents 4.45 per cent of the issued share capital of
the Company as enlarged by the Placing. The Company has also vendor placed
406,861 existing ordinary shares to institutional investors. These shares were
issued pursuant to the conversion of #916,262 convertible loan notes issued on
the purchase of Qualtech Limited on 23 October 1998.

During the present financial year and since the Company's successful rights
issue in October 1999, Cedar has expanded significantly its operations both in
the UK and in the US. The Group has completed several strategic acquisitions
which have broadened Cedar's product range and increased its customer base and
geographical coverage in line with the proposals set out at the time of the
rights issue. This has been reflected in a dramatic rise in the Company's
share price from 136.5p on 29 September 1999 on the day prior to the
announcement of the rights issue, to a closing price of 1512.5p on 14 March
2000.

The net funds to be raised from the Placing will be invested in the following
areas:

*    further strategic acquisitions in the UK and the US, in line with Cedar's
     stated strategy;
*    additional working capital support for the acquired businesses;
*    additional funding for the development of Cedar's range of e-content
     business solutions into the United States Financial Services Industry.

Further announcements will be made by the Company regarding the progress of
these initiatives in due course.

The placing price of 1410p per share represents a 6.78% per cent discount to
the closing middle market quotation of 1512.5p per ordinary share as derived
from the Official List of the London Stock Exchange on 14th March 2000.  The
Placing shares will, when issued and fully paid, rank pari passu in all
respects with the Company's existing Ordinary Shares, including the right to
receive any dividend or other distribution thereafter declared made or paid.

The Placing is conditional, inter alia, on admission of the Placing shares to
the Official List of the London Stock Exchange and on the passing of the
resolutions to be proposed at an Extraordinary General Meeting of the company.

The EGM is being convened for 10.00am on 7th April at the offices of Teather &
Greenwood Limited, Beaufort House, 15 St. Botolph Street, London EC3.

Application will be made to the London Stock Exchange for the Placing shares
to be admitted to trading on the Official List.  It is expected that Admission
will become effective and that dealings will commence on 10 April.

Mike Harrison, managing director of Cedar commented:

"Today's Placing will enable Cedar to accelerate its strategy for growth in
both the UK and the US market places.  I am particularly excited about the
opportunities open for us in the US Financial Services sector and strongly
believe that our planned investment in our e-content business solutions will
deliver truly significant benefits".


For further information:

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

Russell Cook
Teather & Greenwood Limited                                      0207 426 5000

Shane Dolan
Biddick Associates                                               0207 377 6677

END

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