RET Retec

    20 May 2008

                               RETEC DIGITAL PLC                               

                           ("Retec" or "the Group")                            

                     Acquisition of Liquid Digital Limited                     

Retec Digital Plc, the multi-channel marketing services company and one of the
UK's largest provider of guided selling solutions which counts Tesco, Asda and
Sainsbury's amongst its clients, is pleased to announce that it has acquired
the entire share capital of Liquid Digital Limited ("Liquid"), specialists in
screen communication and innovation, for a consideration of �250,000, satisfied
by �150,000 in cash and the issue of 3,809,523 shares based on the average
mid-market price for the three dealing days prior to completion.

Liquid is a multi-media creative agency that designs and operates screen
networks in the digital media market. Its principal customers are WH Smith
Travel Limited, where it operates its in-store screen network, and Transmedia,
for whom it operates the Cabvision entertainment screens in taxis in London. In
the year to 31 May 2007, Liquid had an unaudited turnover of �551,000 and
profit before tax of �20,000. Its unaudited net assets at 31 May 2007 were �
16,000.

Retec Digital is repaying loans of �50,000 to the current shareholders of
Liquid as part of the transaction but then receiving a new loan of �100,000
repayable on 31 December 2008 from the principal shareholder in Liquid.

John Cole, CEO, stated: "This acquisition will allow Retec to further develop
its strong position in the digital media market. The Liquid creative team will
be a great asset to our business as they bring with them an impressive customer
base as well as new skills which will enable us to expand our capacity and
offer a new range of products and services to existing and new customers."

Simon Edwards, Managing Director of Liquid commented: "We are delighted to be
joining forces with Retec. We have been working together on a number of
projects already and this acquisition means that we will have access to the
opportunities available to the rest of the Retec group."

                                   - Ends -                                    

For further information please contact:

Retec Digital PLC                                               01455 222260
John Cole, Chief Executive                                                   
Charles McKay, Finance Director                                              
                                                                             
Hogarth Partnership Ltd                                         020 7357 9477
Fiona Noblet / Ian Payne                                                     
                                                                             
Charles Stanley Securities                                      020 7149 6000             
Mark Taylor                                                     

Notes for Editors:

Retec Digital PLC provides multi-channel marketing solutions to retailers
designed to engage customers and increase sales.

It already has systems installed in major retail chains including Sainsbury's,
Tesco, Boots and Argos.

Flexible and versatile, Retec's solution can incorporate a mixture of advanced
products within its range. These include:

Entertainment Xtra - a communications channel incorporating the range of the
company's system aimed at promoting home entertainment products such as music,
films, games and books. Customers include Sainsbury's, Tesco and ASDA.

Product Finder - this is used to locate any product within a store and can be
used in conjunction with other applications within the company's portfolio.

Guided Selling - a touch screen providing audio/visual information/instruction
on products at the point of sale. This has a variety of applications including
for example, wine and electrical goods.

Self Service - allows customers to perform a transaction using an in-store
terminal. Retec's product suite has the ability to extend the range of product
sold within a store, enable self check-out, top up a mobile phone, sell mobile
phone content (games, logos etc), purchase of gift cards and interact with
loyalty schemes. Current customers include Boots, Argos and Woolworths.



END

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