CMG Croma Grp

RNS No 6212u
CMG PLC
9th June 1998
                            

CMG forms joint venture company with DTI's Radiocommunications
                            Agency
                               
CMG plc, the European IT services group, and the
Radiocommunications Agency ("RA"),  an executive agency of the
Department of Trade and Industry ("DTI") are pleased to
announce the formation of a joint venture company, Radio
Spectrum International Consulting Limited ("RSIC"), which will
provide IT services to RA and spectrum management consulting
services to other potential customers.  The services being
provided to RA will include software development, applications
management, scientific computing, telephony, desktop and
infrastructure services and IT consultancy.

The venture is believed to be the first joint venture of its
kind between the private sector and government.  RSIC will
operate on a commercial basis and will be managed by CMG,
which will own 70% of the new company.  The remaining 30% will
be owned by the Secretary of State for Trade and Industry.
The arrangement will run for a minimum of seven years from
June 1998, with revenues over the period expected to be in
excess of #50 million.

The company's personnel will include consultants from CMG and
some staff on secondment from the Radiocommunications Agency
in London.  The Board of Directors will consist of 4 CMG
nominees and 2 RA nominees.

CMG has been a major supplier of IT services to both the DTI
and RA for many years.  Over the past two years, CMG has been
responsible for developing the Unified Licensing System, which
will enable RA to combine all spectrum licensing activities
within one information system.  CMG has also, through its
business change consultancy team, assisted in the procedural
and cultural change necessary to implement the new system.

RA is responsible for the management of the civil radio
spectrum in the UK.  This includes all radio spectrum usage,
including the issuing of licences for the use of radio
frequencies.  Other responsibilities include investigating
interference and spectrum misuse, enforcing radio usage
legislation and representing the UK's interests in radio
spectrum management in Europe and the rest of the world.

In addition to supplying services to RA, the new company will
also be responsible for marketing radio spectrum consultancy
and operations worldwide, in association with The Smith Group
Limited and National Economic Research Associates.

Commenting on the new venture, Ian Taylor, Chairman of the UK,
said "CMG is pleased and excited to have been chosen by the
DTI to launch such an innovative public/private sector
partnership.  I believe the combination of  RA's vast
experience in this area, together with CMG's experience in IT
services and telecommunications, will produce an efficient,
profitable and successful joint venture".


For further information, contact

Ian Taylor
UK Chairman

CMG UK Limited
Parnell House
25 Wilton Road
London SW1V 1EJ

Tel:   0171 592 4000
Fax:   0171 592 4111

Chris Banks
Finance Director

CMG Plc
Parnell House
25 Wilton Road
London SW1V 1EJ

Tel:   0171 592 4000
Fax:   0171 592 4804


Note to editors:
CMG company profile
The Smith Group company profile


CMG Company Profile

CMG plc is a leading European Information Technology services
group.  Established in 1964, CMG now operates in more than 40
countries from its bases in the UK, The Netherlands, France
and Germany.  The Group is listed on the London and Amsterdam
Stock Exchanges.

CMG supplies systems development, management consultancy and
advanced technology services in the finance, transport, trade
& industry, energy, telecommunications and public sectors.
The Group also provides managed information processing
services, including payroll and personnel.

The Smith Group Company Profile

The Smith Group helps companies and public organisations
improve their business by applying communications and
information technologies.  Smith operates predominantly in the
Defence, Utilities, Transport and Telecommunications markets
which it serves through five autonomous divisions.  The focus
for the Strategic Partnership will be Smith's Convergent
Technology Solutions Division, which helps regulators and
operators exploit the convergence of telecommunications,
broadcasting and information technology.  In 1997/98 Smith
generated an annual turnover of #15 million.



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