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March 12, 2000

RM Announces Acquisition Of Web Design Company

COMPANY PRESS RELEASE: RM plc the leading supplier of Information and Communications Technology (ICT) to UK education, is pleased to announce today the acquisition of 3T Productions Limited (3T), a web site design and development company for a total consideration of up to £5.2m to be satisfied in RM shares, loan notes and cash.

By CBR Staff Writer

The acquisition of 3T is part of RM’s investment programme in its Internet activities. It significantly strengthens RM’s ability to develop its web activities and its strategy of developing Internet services to support teaching and learning. RM is already the leading provider of Internet content and services to the UK education market and its Internet for Learning (IfL) service is the UK’s leading education Internet Service Provider (ISP). Launched in 1996, IfL connects over 10,000 schools to the Internet. RM’s Living Library online content service, containing some two million reference articles, is now used by 35% of UK schools and the company recently launched Window Box OnLine, an Internet content service for primary schools.

3T provides website and interactive media design and production for a wide range of clients, primarily in the educational marketplace and has worked on a number of projects with RM in the past. This included the creation of the Explore Parliament educational website in 1999. RM and 3T have recently collaborated on the provision of bespoke Intranet services for a number of education authorities and will add this service to RM’s portfolio of Managed Content Services. The two companies have recently submitted a joint bid for the exciting DfEE initiative GridClub.

3T has developed ICT training needs identification software for teachers on behalf of the Teacher Training Agency (TTA). It has also designed educational websites and CD Roms for organisations such as the DfEE, BP, BT, BMW and the Health Education Authority. More than 90% of 3T’s output is education related (used by pupils or teachers) and it has a long track record of producing award-winning products. 3T is based in Stockport, Cheshire, and has 25 employees. The senior management has entered into agreements to remain with the business over a period of up to 3 years.

Richard Girling, Chief Executive of RM, commenting on the acquisition, said: This is a really exciting acquisition for RM. It builds on our position in the educational market place and enables us to develop complete Internet solutions for schools and education authorities. With the growing focus on broadband and web content, our ability to offer content creation and management services is vital and in line with our long-term Internet strategy.

We will continue to look at ways in which we can strengthen our business, particularly in offering innovative and exciting Internet related products and services to the educational market.

Sheila Rogers, managing director of 3T said: I am delighted that 3T has become part of the RM group. We have worked together on a number of projects in recent years, and by formalising the relationship I am confident that we will be in a strong position to capitalise on our individual, but complimentary, strengths. 3T’s main asset is its people – some of whom have been with the company for many years – and the directors of 3T feel strongly that RM is a company that also puts its people first. I believe we share the same values and the same long-standing commitment to education, and so this is an excellent deal for all concerned.

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