CMG Croma Grp

RNS No 3086h
CMG PLC
20 October 1999


CMG plc acquires French IT services company specialising
                 in the insurance sector

CMG plc, the European IT services Group, announces that
it acquired on 19 October 100% of Eurasoft SA, an
information systems company based in Paris.  Eurasoft
has grown rapidly since inception in 1995 and has
established leadership in its niche position within the
French insurance sector.  It employs 45 people who, with
their existing management, will now work alongside CMG's
finance sector team to offer a broad range of focused IT
solutions.

Particularly notable in Eurasoft's service offering is
the implementation and optimisation of insurance systems
using the Graphtalk object technology platform which has
become a key enabler for IT-based business
transformation as insurance companies seek to streamline
operations and exploit new channels to market

In the year ended 31 December 1998, Eurasoft had a
turnover of FFr 14.7 million (#1.46 million) and an
operating income of FFr 3.5 million (#0.35 million).
The total consideration, to be paid in cash, is FFr 33
million (#3.28 million).  The company is expected to
make a small positive contribution to CMG's earnings
before goodwill amortisation in 1999.

CMG France National Director, Eric d'Hotelans,
commented:

   "The acquisition of Eurasoft accelerates our
   progress in France where we acquired three companies
   in 1998 and have achieved excellent recruitment
   levels to reach more than 400 people at the 1999
   half year stage.  We have been aware of Eurasoft's
   growing reputation in the insurance sector for some
   time and are very pleased that Mr Xavier, his
   management team and their highly skilled team of
   people will now be working with us."
   
Cor Stutterheim, Chairman of CMG, added:

   "We continue to pursue our strategy of adding to our
   organic growth through acquisition when we identify
   suitable businesses with good management, like-
   minded people and established customer relationships
   in our chosen sectors."

CMG's results for the half year to 30 June 1999 were
announced on 1 September and showed revenue growth of
50% and profit growth (before tax and goodwill
amortisation) of 54%.


* Graphtalk is a registered trademark of Computer
Sciences Corporation


For further information please contact:

Eric d'Hotelans, National Director, CMG France,
tel: +33 (0)1 55 20 50 00

Tony Richards, Group Communications (London), CMG plc,
tel: +44 (0)171 592 4000

Jan Massier, Group Communications (Amsterdam), CMG B.V.,
tel: +31 (0)20 67 20 444



About CMG

CMG plc is a leading European IT services group,
providing business information solutions through
consultancy, systems development, software applications
and managed services.  Established in 1964, CMG operates
internationally from its European bases in The
Netherlands, the UK, Germany, France and Belgium,
implementing and supporting applications for clients
around the world.  The Group is listed on the London and
Amsterdam stock exchanges and will also be listed on the
Amsterdam options exchange from 26 October 1999.

CMG has proven knowledge, products and solutions in the
finance, trade transport & industry, telecommunications,
media, energy, utility and government markets.  The
Group also provides managed information services ranging
from payroll processing and personnel administration to
call centres and networks.

CMG works alongside its customers to generate success
for them.  Through the quality of its services and the
long term commitment of its staff, CMG adds value to its
customers' businesses and thereby creates a basis for
the Group's long term success.



END

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