Acquisition of 85% of e data resources, inc. (edr)

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Wednesday 23 June 1999

DMG Information (DMGI), a division of DMGT, has agreed terms to acquire through a US subsidiary the 85% of e data resources, inc. (edr) not already owned by DMGT.

edr, based in Southport, Connecticut is a leading provider of geographic based environmental risk management information in the USA. This information is used by property lenders, developers, insurers and environmental consultants. edr, through its Sanborn division, also serves the municipal geographic information markets and, through its Strategis division, the international telecommunications market.

edr was founded in 1990 and has a successful record of revenue growth. DMGT made its initial investment in 1997/98, at a cost of US$11.5 million. edr's net assets (unaudited) as at 31 December 1998 were $17 million, and revenues in the year ended 31 December 1998 were $34 million.

The acquisition of edr will significantly enhance DMGI's existing interests in risk management information businesses. In February 1998, DMGI completed the acquisition of Risk Management Solutions, which is one of the global leaders in providing information for the management of insurance and financial risks associated with natural catastrophes, and in September 1998 acquired Landmark Information Group, a UK-based environmental risk information business. DMGI also owns a majority stake in Dolphin Software, the Oregon, USA-based business providing information on the management of hazardous chemicals.

The transaction is expected to be completed in March and should be earnings enhancing, before any amortisation of goodwill, for DMGT in the current financial year.

Inquiries to:
Martin Morgan, Managing Director, DMGI 01223 273 420
Paul Sykes, Finance Director, DMGI 01223 273 420
Peter Williams, Finance Director, DMGT 0171 938 6631