RNS Number:7574Q
Systems Union Group PLC
10 October 2003



      Systems Union Group plc announces plans to acquire MIS AG

Market leading financial and business management software group to expand
solution portfolio and create new Business Intelligence Division


Systems Union Group plc (LSE: SUG), one of the UK's largest software companies
with a focus on providing global financial and business management software
solutions, today announces that it has reached agreement with MIS AG (quoted on
the Frankfurt Stock Exchange on the Prime Standard: MIX) to make an offer for
the issued and outstanding share capital for a cash consideration of GBP 23.7
million (EUR 34.1 million) or GBP 6.94 per share (EUR 10.0 per share). This will
be financed from Systems Union's internal cash resources and new borrowing
facilities of GBP 15 million (EUR 21.6 million). Systems Union has received
irrevocable undertakings to accept the offer and a call option in respect of a
total of 50.7% of the MIS AG shares.


MIS is a leading provider of business intelligence software solutions with
approximately 460 staff and a worldwide presence including seven offices in
Germany, seven offices in the rest of Europe and thirteen representative
organisations worldwide.



Highlights of the acquisition



The acquisition of MIS offers the opportunity for Systems Union to:

-          Create a new Business Intelligence Division

-          Complement its Financial and Business Management Division

-          Deliver competitive edge via new business intelligence offerings and
           strong integration into its product portfolio

-          Contribute significant incremental revenues by targeting its existing
           global customer base with new and additional business intelligence solutions

-          Provide enhanced penetration of the rapidly growing business
           intelligence market


The acquisition by Systems Union offers the opportunity for MIS to:

-          Continue to deliver high quality business intelligence solutions to its existing customer base from a more   
           powerfully resourced group

-          Leverage Systems Union's global infrastructure to strengthen MIS'
           global operation

-          Access 18,000 existing SunSystems customer sites in 194 countries

-          Access SunSystems' 200 channel partners in 76 countries

-          Expand the financial strength of the combined entity

-          Leverage future acquisitions by the enlarged group



The Directors of Systems Union expect the acquisition to enhance adjusted*
earnings per share (*before the impact of goodwill amortisation) in the first
full financial year following completion.

Paul Coleman, Chief Executive Officer of Systems Union, commented: "I will be
delighted to welcome MIS into the group. Peter Raue and his management team have
built a very strong contender in the global business intelligence market and its
excellent customer base and strong solution portfolio will be a very valuable
addition to the group. As well as continuing to operate independently in the
business intelligence market as a separate division within the enlarged Systems
Union group, the complementary nature of the existing Financial and Business
Management Division (comprising SunSystems, Pegasus and REDtechnology) will
provide an excellent platform from which to extend MIS' global market coverage."

Peter Raue, Chief Executive Officer of MIS, commented: "We will be very pleased
to take the leading role in establishing and managing a new global business
intelligence division within the international software group, as it will help
us to accelerate our expansion plans. We will be able to leverage off Systems
Union's global infrastructure and comprehensive distribution network to further
strengthen our market position. The Management Team of MIS is excited by this
move and we look forward to joining forces with Systems Union Group in the
global marketplace with great confidence".


                                  - e n d s -



An analyst presentation by Systems Union will be held at 10.30 a.m. on 10th
October at the offices of WestLB Panmure, Woolgate Exchange, at 25 Basinghall
Street, London EC2V 5HA.


Enquiries:

Robert Gibb, Systems Union, Corporate Communications Manager
Tel: 07767 216021/ 01252 556219 or 556000




           Systems Union Group plc announces plans to acquire MIS AG

   Market leading financial and business management software group to expand
        solution portfolio and create new Business Intelligence Division



Introduction

Systems Union Group plc (LSE: SUG), one of the UK's largest software companies
with a focus on providing global financial and business management software,
today announces that it has reached agreement with MIS AG (quoted on the
Frankfurt Stock Exchange on the Prime Standard: MIX) to make an offer for the
issued and outstanding share capital for a cash consideration of GBP 23.7
million (EUR 34.1 million) or GBP 6.94 per share (EUR 10.0 per share). This will
be financed from Systems Union's internal cash resources and new borrowing
facilities of GBP15 million (EUR 21.6 million). Systems Union has received
irrevocable undertakings to accept the offer and a call option in respect of a
total of 50.7% of the MIS AG shares.

MIS, headquartered in Darmstadt, Germany, is a leading business intelligence
software solutions company with approximately 460 staff and a worldwide
presence. In the year ended 31st December 2002 it reported revenues of GBP 33.3
million (EUR 47.9 million), a loss before interest, tax, depreciation and
amortisation (LBITDA) of GBP 0.02 million (EUR 0.03 million) and a loss before
tax of GBP 3.7 million (EUR 5.3 million). For the half year ended 30 June 2003,
the company reported revenues of GBP 17.6 million (EUR 25.4 million), an EBITDA
of GBP 1.5 million (EUR 2.2 million) and, at that date, had net assets of GBP 10
million (EUR 14.4 million).

MIS has a highly regarded and experienced management team that will remain with
the enlarged group. After the completion of the offer, Peter Raue, Chief
Executive Officer of MIS will remain in that position and will also be the Chief
Executive Officer of the newly created Business Intelligence Division within the
Systems Union group of companies.  Paul Coleman, Chief Executive Officer of
Systems Union Group, will become Chairman of the Supervisory Board and Tony
Sweet, Chief Financial Officer of Systems Union Group, will also join the
Supervisory Board of MIS.

Information on MIS

Founded in 1988, MIS develops and distributes business intelligence software
solutions for planning, reporting and analysis that enable companies to drive
performance in dynamic marketplaces. These solutions can be seamlessly
integrated into existing IT implementations, offering complete scalability from
department to enterprise levels. MIS' DecisionWare, the company's flexible
software tools, and professional consulting services support rapid
implementation and productivity. More than 23,000 users in 1,000 companies
around the world use MIS' solutions for business-critical initiatives ranging
from real-time sales analysis and consolidation to risk management and long-term
planning.

MIS has strategic partnerships and alliances with over forty companies including
Microsoft, KPMG, Psipenta and PricewaterhouseCoopers.

MIS shares trade on the Frankfurt Stock Exchange's Prime Standard under the
symbol MIX. Headquartered in Darmstadt, the company has seven offices in
Germany, seven offices in Europe and thirteen representative organisations
worldwide.

Background to, and reasons for, the acquisition

The business intelligence market represents a key growth segment in enterprise
applications sector and it is estimated by AMR Research (September 2003) to be
worth $11 billion by 2007 with a CAGR of 7%. IDC (May 2003) sees the financial
analytics market growing at 8.8% between 2003-2007.

The continued growth in the business intelligence market is being driven by a
number of factors including accelerating financial reporting cycles

, the need to give managers timely access to financial information

, the need for a comprehensive picture of performance across the business and
the ability to pinpoint profitability issues and opportunities and ultimately
drive shareholder value.

Senior finance professionals are demanding more from financial management
solutions to facilitate proactivity and this has led to increasing demand for
tools such as planning, forecasting and budgeting to integrate into core
financial solutions. Systems Union identified the need to extend its financial
management solutions portfolio as a critical success factor.

MIS was identified by Systems Union as being an attractive addition to the group
because it had a powerful business intelligence solution portfolio, impressive
brand equity in the business intelligence market, a strong global customer base
and complementary market positioning.

Systems Union is seeking to acquire MIS to deliver against its corporate global
scale, global reach and global solutions objectives as follows:

Global Scale

-      Increase group revenues substantially - this acquisition will bring
       an additional GBP 35 million (EUR 50.4 million) of revenues into the group

-      Provide significant incremental revenue opportunity for MIS solutions

-      Systems Union will be able to target its existing 18,000 customer sites with a
       powerful new portfolio of business intelligence products including budgeting,
       planning, forecasting and consolidation

-      Leverage future acquisitions made by the enlarged group - given
       Systems Union's stated objective to significantly grow the business via
       acquisition, any new additions to the group will provide further leverage for
       sales of MIS products



Global Reach

-      Strengthen Systems Union's global presence

-      Strengthen the group's position in the very important German market



Global Solutions

-      Provide enhanced penetration of the growing business intelligence
       market

-      Deliver an enhanced solution portfolio to market very quickly because
       of existing integration capabilities


Financial effects of the acquisition

The Directors of Systems Union expect the acquisition to enhance adjusted*
earnings per share (*before the impact of goodwill amortisation) in the first
full financial year following completion.

Principal terms of the acquisition

Systems Union has announced its decision to make a public tender offer to
purchase the total share capital of MIS for a consideration of GBP 23.7 million
(EUR 34.1 million), and intends to post the offer document subject to the normal
regulatory approval process in early November. In aggregate, Systems Union has
received irrevocable undertakings to accept the offer and a call option in
respect of approximately 50.7% of MIS' shares.

Financing for the acquisition

The consideration for the transaction will be paid in cash and will be financed
from Systems Union's internal cash resources and new borrowing facilities of GBP
15 million (EUR 21.6 million).

Current trading and prospects

Systems Union Group's half year results were announced at the end of August.
Since that time the Group has continued to trade in line with market
expectations.



                                  - e n d s -

Notes

The announcement contains certain 'forward-looking' statements including
statements about the feasibility and benefits of the acquisition of MIS AG by
Systems Union Group. These statements are subject to uncertainty and changes in
circumstances so that actual results may vary materially from the expectations
contained in this announcement. Many of the risks and uncertainties relate to
factors that are beyond Systems Union Group's ability to control or estimate
precisely. Readers are cautioned not to place undue reliance on these forward-
looking statements to reflect events or circumstances after the date of this
announcement. Nothing in this press announcement should be construed or be
interpreted to mean that the financial performance of Systems Union for the
current or future years will necessarily match or exceed the historical or
published earnings of Systems Union. WestLB Panmure Limited (which is authorised
and regulated by the Financial Services Authority Limited) is acting as
financial adviser to Systems Union in relation to the acquisition of MIS and
will not regard any other person as its customer in relation to this
transaction.


The financial information related to MIS has been translated at an exchange rate
of EUR 1.44 to GBP 1.00.



10 October 2003


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            The company news service from the London Stock Exchange
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