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RNS Number:1156M
Cedar Group PLC
25 October 2001



25 October 2001


                                   Cedar plc

              Cost Savings Implemented and Largest Ever Contract Win


*     Cedar has implemented cost savings programme

*     Cedar expects to achieve cost savings of #11m in the second half

*     Cedar awarded Company's largest ever contract ($16.5 m)


Cedar plc ("Cedar"), the software and services group, announces the results of
its cost savings programme, its largest ever contract win and provides the
following business update.

In the Company's AGM statement on 17 September 2001, Cedar announced that as a
result of difficult trading conditions, revenues were likely to fall
materially below market estimates for the current financial year and that it
would review its cost base in response.

The review focused on areas of the business where tight control would be most
immediately effective, including headcount, location rationalisation and
disposal of certain non-core assets.  The intention was to ensure that the
cost base is aligned to the current level of market activity, whilst
maintaining focus on the Group's long-term prospects.

As a result of the review, Cedar has reduced its global headcount by 320.
Together with other general cost-containment measures, Cedar expects to
generate cost-savings of #11m in the second half of the 2001/2 financial year.
In addition, Cedar aims to gain further economies by rationalising its office
locations in both the UK and USA.

In the five weeks since the AGM, Cedar has won a number of contracts including
the Company's largest one ever, worth an initial $16.5m, with New York State
Comptroller (New York State's chief fiscal officer) for the implementation of
PeopleSoft software. Other new contracts have been won in the last five weeks
with organisations such as Scottish Power, Churchill Insurance, Serious Fraud
Office, State of Utah, Christians Children Fund, and FM Global.

Discussions with Bank of Scotland, the Company's Bank, have been constructive
and it has confirmed the continued availability of facilities. Cedar is also
considering a number of options regarding restructuring the Company's Balance
Sheet.

On 8 October 2001, Cedar confirmed it was in preliminary discussions with
several parties concerning the disposal of Carousel Leisure, the gaming
division of SWORD. These discussions are progressing and a further
announcement will be made when appropriate.

Cedar adopted US GAAP for revenue recognition with effect from its year ended
31 March 2001.  As a consequence the Company is recognising its software
license sales on a rateable basis, which means that it is less exposed to the
unpredictability and seasonality that characterises the business application
software and services market.

Commenting on today's announcement, Mike Harrison, Chief Executive of Cedar
plc, said:  
"Whilst trading conditions continue to be tough, we have taken difficult
decisions and have acted decisively to restructure Cedar's cost base.  We
remain focused on sustaining customer satisfaction, whilst aligning our cost
base to support a less seasonally dependent business model.  Customers'
recognition of Cedar's business proposition continues to be evidenced by our
securing significant new contracts with organisations such as Scottish Power,
Serious Fraud Office, Churchill Insurance, State of Utah, Christians Children
Fund, and FM Global. We are particularly pleased to have won our largest ever
contract involving the implementation of new PeopleSoft business systems for
New York State Comptroller."


The Company will announce its interim results on 6 December 2001.


Contacts:
Mike Harrison, Group Chief Executive
Mike Hosie, Group Finance Director
Cedar plc                                                 01932 584000
Ben Atwell/Emma Rutherford
Financial Dynamics                                        020 7831 3113

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