RNS Number:0117L
CMG PLC
23 May 2000


  CMG plc acquires German IT services company based in
                         Berlin

CMG plc, the European ICT Services Group, has acquired a
50.9 % stake in SDC Software Development & Consulting
GmbH  (SDC) on 10 May 2000.   The 50.9 % stake will
consist of new shares issued by way of an increase in
the share capital of SDC.  In addition, CMG and the
current shareholders have entered into option agreements
enabling CMG to acquire the remaining 49.1 % in 2002.

SDC is an IT services company focused on software
projects involving consultancy, system design, project
management and implementation.  In particular, it
provides solutions in the eBusiness arena (B2B, B2C,
Customer Relationship Management, Business Intelligence,
Internet/Intranet), as well as SAP implementation and
optimisation for customers in the Berlin and Brandenburg
region.

SDC was founded in 1996 and now has an established
reputation and high quality client list.
In the year ended 31 December 1999, SDCs preliminary
unaudited results show turnover of 11.0 million DM (#
3.7 million) and an operating profit of 1.5 million DM
(# 0.5 million).

The total consideration, including amounts payable under
the option, will be approximately 30 million DM (# 9.2
million). The estimated net assets of SDC at the end of
1999 were approximately 1.0 million DM (# 0.3 million).
The company is expected to make a positive contribution
to CMG's earnings before goodwill amortisation in 2000.

The management and all 85 employees of SDC will remain
with the company and will ensure the continuation of its
successful expansion course.  By joining with CMG's
existing branch in Germany's capital,  the ICT services
company becomes a heavy-weight player  in the Berlin and
Brandenburg market.

CMG Country Chairman for Germany, Reinhold Friedrich ,
commented:

   "With the addition of our new SDC colleagues, CMG
   significantly extends its German position in the
   area of Berlin and Brandenburg.  Acquiring the
   majority interest in SDC is an excellent strategic
   fit for CMG, broadening and strengthening our
   capabilities and adding a mostly complementary
   customer base.   We now have the resources to be a
   credible partner for both commercial and
   governmental organisations in the area"
   
Carsten Sommer, SDC Managing Director, said:

   "Now that we have a strong international partner, we
   will strengthen our activities in the
   Berlin/Brandenburg area.  We have chosen CMG because
   we are convinced that the strategies and cultures of
   our two companies are well matched.  We are looking
   forward  to a successful future together."

Bernd Lantermann, Business Development Director of the
CMG Group, added:

   "With this acquisition we continue to pursue our
   strategy to expand geographically and supplement our
   organic growth by acquisitions.  We are able to
   build business relations with well respected
   enterprises who need our in-depth resources to
   realise their corporate strategies in this time of
   rapid change.  The current merger accelerates CMG's
   development in Germany by expanding our customer
   base, employees and expertise, especially in the
   growing market for eBusiness solutions."

For further information please contact:

Reinhold Friedrich, Country Chairman, CMG Deutschland GmbH,
tel: +49 (0)6196 963600

Philipp-A Diebenbusch, Communications, CMG Deutschland GmbH,
tel: +49 (0)89 65 11 20

Chris Banks, Finance Director, CMG plc,
tel: +44 (020) 7592 4000

Tony Richards, Group Communications (London), CMG plc,
tel: +44 (020) 7592 4000

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



END

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