TWE Twenty

RNS Number:3002O
Twenty PLC
20 December 2006



                                   TWENTY PLC

                    Acquisition of Emaginating Limited


Dated: 20 December 2006


Twenty plc ("Twenty" or the "Company"), the investment company focused on the
acquisition and management of customer data and intelligence in the marketing
services sector, is pleased to announce that on 19 December 2006, the Company
entered into an agreement to acquire the entire issued share capital Emaginating
Limited ("Emaginating"), a company that assists organisations plan their
channels to market utilising geo-demographic data. The maximum consideration for
the acquisition is #85,000.


Emaginating Limited


Background to Emaginating


Emaginating was incorporated in January 2004 by Professor Martin Clarke, a
Non-executive Director of the Company, and Mark Birkin to provide services for
retail and financial services organisations. Emaginating integrates customer and
geo-demographic data and applies modelling techniques to help clients understand
their market opportunity and enable effective development and planning of their
channels to market. Emaginating has a client base that includes The Post Office,
Thomas Cook, Norwich & Peterborough Building Society, The Association of
Convenience Stores, Defra, UKWIR and ITV


The business


The business achieved revenues of #120,889 and an operating loss of #26,711 in
the 9 months to 31 October 2006 with Emaginating expected to contribute
positively to the Enlarged Group's results in the financial year to December
2007. Emaginating is being acquired on an earn-out based on the achievement of
future profits in the calendar year 2007.


The total consideration is capped at #85,000 based on a payment of 80p for each
#1 of pre tax operating profits after all expenses are met for the financial
year to 31 December 2007.


Emaginating's Management team


The Directors of Emaginating will remain with the business as consultants on
three-month rolling contracts as detailed below.


Martin Clarke, a Non-executive Director of the Company, will remain as a consult
ant to Emaginating and will be paid a basic fee of #50,000 per annum plus a
bonus based on a 45% share of a bonus pool over a three year period as detailed
below.


Mark Birkin will remain as a consultant to Emaginating and will be paid a basic
fee of #24,000 per annum plus a bonus based on a 30% share of a bonus pool over
a three year period as detailed below.



Mark Wogan has been appointed as a consultant to Emaginating and will be paid a
basic fee of #30,000 per annum plus a 25% share of a bonus pool over a three
year period as detailed below.


The three consultant's bonuses will be based on the following formula:


*         The bonus pool for 2008 will be paid on the incremental pre tax profit
achieved in the financial year 2008 over that achieved in the financial year
2007 multiplied by 2;

*         The bonus pool for 2009 will be paid on the incremental pre tax profit
achieved in the financial year 2009 over that achieved in the financial year
2008 multiplied by 2; and

*         The bonus pool for 2010 will be paid on the incremental pre tax profit
achieved in the financial year 2010 over that achieved in the financial year
2009 multiplied by 2.


The total bonus pool available for distribution to the consultants is limited to
#400,000 in aggregate over the three year period and will be reduced by any
investment that Twenty is required to make in Emaginating over the 2007-2010
period on a # for # basis.


Trends and prospects for Twenty as enlarged by the Acquisition


Following the integration into the Enlarged Group, Emaginating is expected to
increase revenues in 2007 and contribute positively to the results of the
Enlarged Group in the financial year to 31 December 2007.



Dataforce Group Limited (the operating subsidiary of Twenty) and Emaginating
have common clients. The Directors believe the acquisition of Emaginating will
increase the level of offerings to these common clients and impact positively on
the Enlarged Group's results. The acquisition of Emaginating also supports
Twenty's strategy of developing its capabilities within the data analytics
segment of the marketing services market place.



The Directors of Twenty, with the exception of Martin Clarke who is involved
with the transaction as a related party, consider, having consulted with ARM
Corporate Finance Limited, the Company's nominated adviser, that the terms of
the transaction are fair and reasonable insofar as its shareholders are
concerned.



Enquiries:


Grant Newton       07713 077209      Twenty plc                        Finance Director

John Simpson       020 7512 0191     ARM Corporate Finance Ltd         Nominated Adviser

Dominic Barretto   020 7562 3350     Bishopsgate Communications        Financial Public Relations
                                     Ltd



Updates on the Company's activities are regularly posted on Twenty's website
www.twentyplc.com.


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