ATP Ata Grp.

RNS Number:9076G
ATA Group PLC
28 July 2006


28th July 2006



                             ATA Group Plc ("ATA")


                 Sale of the business of Gem-Weld (UK) Limited



The Directors of ATA are pleased to announce the following disposal:-


Completion took place today of the sale of the assets and goodwill of Gem-Weld
(UK) Limited for a cash consideration of #264,000 payable in five instalments
over fifteen months.


Mr Bill Douie, Chairman of ATA Group Plc, commented


"The provision by the private sector of rail Track Welding Services was thrown
into turmoil following the return of maintenance of the infrastructure of the
National Rail Network to Network Rail. Since that time there have been periods
of feast and famine in demand for such services and during a period of low
demand in 2004 ATA Group purchased Gem-Weld (UK) Limited. During late 2004 and
2005 costly re-organisation of the Company took place and satisfactory business
flows and trading results were enjoyed for approximately twelve months to 31st
March 2006.


At the beginning of the Network Rail budget year on 1st April 2006 demand again
reduced to wholly un-commercial levels, a situation which continues, and ATA
Group reluctantly concluded that it was not possible to provide this service
through a stand-alone company.


Accordingly the opportunity has been taken to dispose of this activity and
terminate what has not been a successful investment for the Group. The
consideration will be used to further strengthen the Group's cash reserves.


This disposal allows further simplification of the Group range of core business
activities which are strongly focussed on the provision of recruitment and
training services to the manufacturing, construction and transport industries
predominantly in the UK."



Contacts:
Bill Douie, Chairman, ATA Group Plc
Andrew Bailey, Group Managing 
Director ATA Group Plc                               Tel: 01454 310 069
Paul McLoughlin, Rail Division 
Managing Director, ATA Group Plc




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