Acquisition by Subsidiary

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Thursday 22 January 1998

Harmsworth Publishing (HP), the information publishing division of Daily Mail and General Trust plc (DMGT), has agreed to acquire, through a US subsidiary of DMGT, 100% of Risk Management Solutions, Inc (RMS), a company based in Menlo Park, near San Francisco, California.

RMS is one of world's leading providers of software and information for the management and underwriting of insurance and financial risk associated with natural catastrophes. Its clients number more than 300 of the leading insurance and reinsurance companies in the world.

Founded in 1988, it has grown rapidly and had revenues in the year to December 31, 1996, of US$24.2million and net income for that year of US$0.04 million. It had net assets as at December 31, 1996, of US$10.2 million.

HP is to make an initial payment of up to US$65 million (£40m). It will make further payments of deferred consideration to founders and management dependent on the results of the company in future years. The minimum additional payment is US$21 million (£13m) while the maximum is capped atUS$145m (£89m).

HP already has a 40% investment in CARtograph Limited, the leading UK based provider of services similar to those provided by RMS, and has an agreement in principle to accelerate the acquisition of all the outstanding shares in CARtograph. It is HP's intention to merge the operations of RMS and CARtograph in the near future.

This transaction enhances DMGT's investment in the insurance information and publishing sector, where its listed subsidiary Euromoney Publications plc already publishes insurance related titles including Reactions and Asia Cover .

The transaction is expected to be earnings enhancing for DMGT in the first year. The initial consideration will be provided out of existing DMGT resources and borrowing facilities.

Inquiries to:
Peter Williams, Finance Director, DMGT - 0171 938 6631
Martin Morgan, Managing Director, HP - 01223 354 551
Paul Sykes, Finance Director, HP - 01223 354 551