MXC Mgc Pharmaceuticals Limited

Acquisition(s) Embargoed Release: 07:00 10 February 2005 Matrix Communications Group plc (`Matrix' or the `Group') Acquisition Matrix Communications Group plc announces that it has acquired the entire issued share capital of Equip Technology Ltd (`Equip') for a total cash consideration of up to �10.5m, comprising an initial payment of �5m and a sum equal to the increase in Net Assets of Equip since 29th February 2004, �0.5m. In addition up to a further �5m will be paid pursuant to agreed earn-out targets being met after 9 and 21 months. Incorporated in 1999, Equip is a specialist IT distributor offering a range of best of breed technology products. Equip's product portfolio offers application acceleration and enhancement, all under the umbrella of absolute security. Equip's portfolio includes some of the biggest names in IT security. With these vendor partnerships, Equip's customers - resellers and systems integrators, can source every critical IT security function including anti-virus, anti-spam, firewalls, intrusion detection, intrusion prevention, data privacy, authentication, content control, SSL VPNs, wireless security and email security. This acquisition continues to build the Group's Partner Sales Division. Equip has to date booked circa �1.0m of recurring annual support contract revenues for the Group's Year to 31st October 2005. In the Year to 29th February 2004 Equip reported turnover of �13.0m and profit before tax of �1.0m. Net Assets were �1.2m at 29th February 2004. Ian Smith, CEO, commented: "Over the past 18 months we have pursued an acquisition strategy that has enabled us to become the UK's number one company for leading edge technologies. The addition of Equip further builds out our Partner Sales Division and delivers key vendor relationships to the group. Once again we have secured strong individuals to help lead the group into the next chapter of our growth" The Directors of the Company accept responsibility for the information contained in this document. To the best of the knowledge and belief of the Directors (who have taken all reasonable care to ensure that such is the case), the information contained in this document is in accordance with the facts and does not omit anything likely to affect the import of such information. END

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