FMJ Formjet (See LSE:TQC)

RNS Number:7538J
Formjet PLC
02 October 2006


                                                                 02 OCTOBER 2006

                                  FORMJET PLC

                          ("FORMJET" OR "THE COMPANY")
                                   (AIM:FMJ)

               FORMJET TO LAUNCH RANGE OF TESCO BRANDED PRODUCTS

        Unique tie up highlights strength of Formjet's product portfolio

The Board of Formjet, the AIM listed alternative software vendor, is pleased to
announce an exclusive partnership with Tesco Stores Ltd ("Tesco") - a subsidiary
of Tesco Plc. As a result, Formjet will provide a range of utility software
under the Tesco Software brand.

As well as providing the Tesco branded software, Formjet will also manage the
Tesco Software online facility, providing technology and customer support - by
designing, running and maintaining the TescoSoftware.com website. This means
that Formjet will effectively provide a one stop shop for Tesco's entry into the
utility software market.

This is a unique collaboration that marks Formjet's credentials as a provider of
white label software packages, which it can provide on a bespoke basis.

HIGHLIGHTS

   *The exclusive partnership provides a strong platform for Formjet to
    develop strong ties with Tesco and to showcase the strength of its software
    suite;

   *The Tesco products will initially be launched in October 2006, rolling
    out across the UK over the next 12 months;

   *UK computer software market currently stands at approximately #8.8
    billion, 84.7% of which is business software;

   *Formjet's margins will be protected against competitive pricing
    pressures;

   *By providing a one stop shop - incorporating technology and customer
    support, Formjet will also be able to grow recurring revenues as software
    licences are renewed; and

   *The creation of Formjet Innovations will enable the Company to exploit
    further white labelling opportunities that may arise.

Formjet's business model of royalty-based costs for its products ensures that
its margins are protected from competitive pricing pressures.

Formjet will initially provide Tesco with six software titles - two security/
antivirus products; a personal finance tool; a complete office suite; a CD/DVD
burning tool; and a photo editing tool. The software will also be sold in
conjunction with computer hardware, following Tesco's entry into this market
earlier this year, and via tesco.com. The Formjet product suite will be launched
into over 100 stores in October of this year and the plan is to roll this out to
more departments and UK stores over the next 12 months.

In addition to providing the Tesco branded products, Formjet will build and
maintain the TescoSoftware.com website. This means that as well as providing
software support, Formjet will manage the entire Tesco Software renewing
process, enabling it to grow its recurring revenue streams.

Tesco believes that with its low prices and wide customer appeal it can become a
significant player in the computer software market, which is currently worth
approximately #8.8 billion, 84.7% of which is business software.

To further develop its white labelling business, Formjet has created a new
division - Formjet Innovations, specifically to exploit additional opportunities
in this arena. Formjet Innovations will incorporate Ability Software and last
year's acquisition SouthCoast Distributions Ltd. Mr Graham O'Reilly will join
the board of Formjet Innovations Ltd.

Commenting on the deal Tesco Buyer Daniel Cook said: "With more people working
from home and schools encouraging greater use of IT, the demand for home
computing equipment is bigger than ever.

"Customers can now access a wide range of good quality computer hardware at
amazing prices but when it comes to software there is little choice and prices
are high.

"Our new range of software changes this, bringing choice and value to the market
that has offered little of either for too long. Whether running a home office or
helping the kids with homework, Tesco Software can help."

Formjet CEO Lyndon Chapman said "We are very excited to be working with Tesco as
their software partner and developing this initial range of software products.
We will be working with Tesco to expand the range and introduce a comprehensive
software suite, to establish the Tesco Software brand. Tesco has the power to
reach an entirely different environment and customer to traditional computer
stores; we intend to work hand in hand to offer market leading quality software,
at a Tesco price point.

"The development of the products was only part of the transaction. The real test
was providing a comprehensive technical and support service to enable a first
class back up."

Chapman added "This is one of a number of deals in the pipeline referred to in
our interim announcement however it is unlikely to have a material effect on
2006 earnings. The investment towards the end of last year in support facilities
has significantly improved response times and our "alternative" software brands
are an ideal base for creating own label software."

                                   ---ENDS---

ENQUIRIES:

Formjet Plc                                                   Tel: 01293 848 860
Lyndon Chapman, Chief Executive Officer
Tony Lee, Financial Director
www.formjetplc.com

Bishopsgate Communications Ltd                                Tel: 0207 430 1600
Maxine Barnes
Nick Rome
www.bishopsgatecommunications.com

Corporate Synergy Plc                                         Tel: 0207 448 4430
Luke Ahern
www.corporatesynergy.co.uk



Notes to Editors:
Formjet Plc is a UK-based company with a highly distinctive business model. It acquires territorial rights to 
'alternative' software products, and markets, sells, distributes and supports these products in place of the vendor in 
worldwide markets. The strategy has at its heart the proposition that the Company can acquire product lines in 
territories of at least one country without the expense of either product development or the creation of IPR. The 
Formjet Group currently has four product lines: Panda Software and Filestream are UK licences and Ability and Software 
Dialog are worldwide.

Formjet reaches a customer base of more than 400,000 direct customers and in excess of 17,000 corporate clients. This 
market penetration has been achieved through careful research into relevant territories and then applying the most 
suitable routes to market, whether through distribution and/or reseller partners, or via direct sales. Formjet acquired 
SouthCoast Distributions Ltd, a specialist OEM provider to system builders in July 2005.

Formjet has developed a clear niche for creating "white label" software, targeting retail and brand leaders and 
investing heavily in its technical and customer support facilities, which can also be white label branded to fit a wide 
range of customers. This business will grow under the Formjet Innovations banner.

Formjet has restructured its business into four trading divisions;


   * Formjet Security (Anti Virus and Malware products);
   * Formjet Communications (Telephony services and products);
   * Formjet Innovations (white label product creation, OEM software and
     Office suites); and
   * Formjet Technologies (Franchise Developments).















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