RNS Number:1907U
Strategic Thought Group PLC
16 November 2005



                          STRATEGIC THOUGHT GROUP PLC

                                   ANNOUNCES

                                 ACQUISITION OF
                           LINE INTERNATIONAL LIMITED

Strategic Thought ("Strategic Thought" or "the Group"), the software and
services provider which has developed a market-leading risk management software
solution, is pleased to announce that it has agreed terms to acquire the entire
issued share capital of Bristol-based Line International Limited ("Line"). The
total initial consideration for Line amounts to #1.2m, being #0.6m in cash
payable on completion and the assumption of net debt of #0.6m. A further
consideration of up to #1.56m is due, dependent on future results.

Established in 1992 by former employees of British Aerospace, Line has developed
its own risk management software product, 'RisGen', which to date has been
predominantly targeted at small to medium sized enterprises. Line has in excess
of 60 customers across a range of sectors, including engineering, electronics
and leisure. In particular, it has a significant presence within the local
government marketplace.

Line generated turnover of #0.8m and a pre tax profit of #0.02m in the year to
30 April 2005 and at the date of acquisition Line has gross assets of #0.07m and
tangible net liabilities of #0.6m.

The acquisition of Line provides Strategic Thought with a wholly complementary
product to the Group's own "Active Risk Manager" solution, with negligible
overlap of customers. As well as providing a strong operational and corporate
governance risk solution for enterprise customers, the RisGen product provides
the Group with an entry level solution for the SME marketplace and access to new
market sectors.

Strategic Thought anticipates that Line will contribute at least #250,000 of
additional earnings in the year to April 2007 with no erosion of earnings in the
current year.

The initial cash element of the consideration will be reduced dependent on the
value of the tangible net liabilities of Line on completion. The deferred
consideration will be payable in two instalments, the first ending on or before
30 June 2006, with the balance being payable on or before 30 November 2006. The
cash element of the deferred consideration will be capped at #1.3 million. The
balance will be payable in Strategic Thought ordinary shares valued at 155p per
share. Shares issued to the vendors of Line will be subject to orderly market
arrangements.

Richard Higgs, CEO of Strategic Thought, stated,

"The business case for acquiring Line was compelling on the grounds of quality
of product, quality of people and quality of customer base. This acquisition
extends our reach into new markets and we are committed to furthering the
success of RisGen's business and building on the opportunities which this
acquisition provides."

Brian Carpenter, Managing Director of Line, commented,

"The acquisition will benefit all concerned. The expanded market penetration and
product offering will assist the enlarged group in continuing its successful
growth."

Enquiries:

Strategic
Thought Group
plc             Richard Higgs, Chief Executive Officer    +44 (0)20 8410 4000
                Paul Tuson, Chief Finance Officer

Biddicks        Katie Tzouliadis                          +44 (0)20 7448 1000

KBC Peel Hunt   Oliver Scott                              +44 (0)20 7418 8900






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

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