KBC Kbc Adv.Tech.

RNS Number:6620L
KBC Advanced Technologies plc
07 November 2006



7 November 2006

                          KBC Advanced Technologies plc
                                    ("KBC")

                          Acquisition of Veritech Inc

KBC Advanced Technologies plc, a leading consulting and technology group to the
oil, petrochemical and other process industries, today announces the acquisition
of Veritech Inc ("Veritech"), a leading US energy consultant, for an aggregate
consideration of US$1.7 million (the "Acquisition"). The initial consideration
is $200,000 in cash together with the issue of $500,000 in new KBC Ordinary
shares to the vendors. The balance of the consideration will be made in four
annual payments of $250,000 each commencing in November 2007.

Veritech is a private company that provides services and software in the area of
energy optimisation and management for clients in the process industries.
Veritech owns and licenses its own proprietary simulation and monitoring
software - Persimmon(TM) and ESteam(TM). The company is based in Sterling, 
Virginia. The unaudited gross assets attributable to Veritech are US$0.4 million 
at the date of transfer. For the year ended 31 December 2005, reported turnover 
for Veritech was US$1.3 million and profit before tax US$0.2 million. As a 
result of significant sales success during 2006 the KBC Board anticipates that 
revenues will be materially higher for the year ended 31 December 2006. The 
Acquisition is expected to enhance KBC's earnings in the first full year of 
ownership.

Through KBC's acquisition of the Linnhoff March group in 2002, KBC's energy
optimisation services business has been very successful in Europe, the Middle
East and Asia. Veritech's track record in the Americas will both complement and
enhance KBC's coverage of this important sector of our market. Veritech itself
was until the early 1990s a part of the former Linnhoff March group and
therefore uses methodology and tools common to those used by KBC's consultants.

The existing shareholders of Veritech are Michael A Rutkowski, Andrew S
McMullan, and Bruce L Pretty. On completion of the Acquisition all three will
become employees of the KBC Group and their shareholdings in KBC are subject to
lock ups for a minimum period of one year.

The US$500,000 of new Ordinary shares in KBC will be calculated by reference to
the average closing price of the shares of KBC on the 20 dealing days prior to
completion. Application will be made for admission to trading on AIM of the new
Ordinary shares issued to the vendors. The deferred consideration is expected to
be funded out of the future cash flows of KBC.

Commenting on the Acquisition, KBC's Chief Executive, George Bright, said "The
acquisition of Veritech will help KBC build a larger American footprint in the
important area of energy optimisation across the oil refining, petrochemical and
other process industries. Rationalisation of tools and methodologies will bring
significant benefits to the industry."

                                    - ends-

For further information please contact:

KBC Advanced Technologies plc                                      01932 236314
George Bright, Chief Executive
Nicholas Stone, Operations and Finance Director

Arden Partners Limited                                            020 7398 1632
Richard Day

Weber Shandwick Square Mile                                       020 7067 0700
Richard Hews / James Gilheany

Notes to Editors:

KBC Advanced Technologies plc, a leading independent consulting, process
engineering and software group, delivers improved operating performance to the
oil refining, petrochemical, and other process industries worldwide. We provide
process consulting, strategic planning advice, organisational effectiveness
services, energy price forecasting and market analysis, economic studies,
capital project services, and training to help clients achieve their business
objectives and improve their competitive position. KBC analyses plant operations
and management systems and, our consultants recommend changes for material and
measurable improvements in profitability. To assist clients in realising such
improvements, KBC provides implementation services and software solutions,
including KBC Profimatics(TM) models and Petro-SIM(TM) for process optimisation, and
Linnhoff March energy optimisation software packages. Formed in 1979, KBC has
offices in the UK, USA, Canada, Singapore, the Netherlands, Russia, China, and
Japan.  For more information, visit www.kbcat.com.

Persimmon and ESteam are trade marks of Veritech Inc.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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