K3, which supplies enterprise resource planning ("ERP") software, hosting and managed services to the supply chain industry, is pleased to announce the acquisition of FD Systems Ltd ("FDS"), the Sage and e-commerce provider.

25th July 2011 - IMPORTANT ANNOUNCEMENT

ACQUISITION OF FD SYSTEMS BY K3 BUSINESS TECHNOLOGY GROUP

We are pleased to announce that K3 Business Technology Group has acquired Fifth Dimension systems Limited (FD Systems).

K3 is one of the UK’s leading providers of Supply Chain Solutions and Managed Services focussing on the Retail, Manufacturing and Distribution markets.  Supporting some 2,000 customers throughout the UK and Europe, K3 employs in the region of 500 staff and has revenues of c£70 million.

With a broad range of offerings from ERP software through to hosted managed services, we hope that there will be a significant enhancement in the breadth and quality of the services available to all FD Systems customers.  As an AIM listed company, K3 has a proven track record of financial success and investment that guarantees FD System’s future stability, which we believe is particularly important in the current economic climate.

The intention is to maintain and develop FD Systems’s Cardiff offices and the staff you have come to know and rely upon will remain actively involved in the support and development of your IT systems.  As a result of the acquisition I (Nigel Griffiths) will assume the role as Managing Director of the K3 Sage businesses including FD Systems, the K3 FDS Sage 200 business that was formerly part of FD Systems and the sage components of K3 Panacea.  Andy Fox who is the Site Director for the existing K3 Sage business will work alongside me with responsibility for all operational matters.  Previously Andy held Director level roles in other K3 group companies.

Over time we will look to embrace additional offerings and skills from across the group to deliver more value to you.  As an example, K3’s proven hosted applications service will be of particular relevance to customers considering a move to cloud based computing.

You can learn more about K3 Business Technology Group on the company website at: http://www.k3btg.com

In the meantime please contact me, your account manager or a member of the management team if you would like any further clarification

Yours Sincerely

Nigel Griffiths

Managing Director