Group Press Releases

The Sage Group plc (”Sage”), a leading global supplier of business management software and services, announces the acquisition of Hallco 1390 Ltd (”Hallco”) from its shareholders for an enterprise value of £21 million, paid in cash. Hallco’s revenues for the half year to December 2007 were £4.5m, based on unaudited management accounts.

Hallco 1390 Ltd trades under the name of Tekton Group Ltd (”Tekton”) and provides specialist construction software, implementation and support services to more than 230 companies throughout the UK & Ireland. With high levels of localised legislation and compliance in the construction industry, companies require specific local knowledge and expertise from their software suppliers, which companies such as Sage and Tekton are able to provide.

Paul Walker, Chief Executive, said, “Tekton complements Sage’s existing expertise in the construction industry and will broaden our portfolio of solutions for medium-sized customers. The acquisition of Tekton strengthens Sage’s leading market position in this sector and expands our range of construction solutions, from small companies through to larger customers in the mid-market.”

Enquiries:

The Sage Group plc
Tel: +44 (0) 0191 294 3068
Paul Walker, Chief Executive
Paul Harrison, Group Finance Director
Cynthia Alers, Investor Relations Director

Tulchan Communications
Tel: + 44 (0) 20 7353 4200
Stephen Malthouse
Lizzie Morgan

Notes to editors

The Sage Group plc is a leading global supplier of business management software and related services, with 5.5 million customers worldwide. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and now employs over 13,900 people worldwide. Sage has over 40,000 existing customers in the construction sector in the UK & Ireland. www.investors.sage.com

Tekton Group Ltd is one of the leading suppliers of business solutions to the construction industry in the UK and Ireland, providing specialist construction software, implementation and support services to more than 230 companies throughout the UK & Ireland. www.tekton-group.com