Acquisition

RNS Number:3455W
Electric Word PLC
03 January 2006



3rd January 2006



                               Electric Word plc



                       Acquisition of SportBusiness Group
                   Significantly Strengthens Sports Portfolio



Electric Word plc, the specialist information publisher, announces today the
acquisition of SportBusiness Group Ltd ("SBG").  SBG is a specialist publishing
company operating in the growing markets of commercial sport and sports rights
and is highly complementary to Electric Word's sports division.  SBG is being
acquired from Sussex Trading Company Ltd for a total maximum consideration of
#2.74 million.



SBG's titles are read by those involved in the business of sport and include:
SportBusiness International magazine and website, the trade publication of
international sports business with a worldwide readership of senior rights
owners, broadcasters and intermediaries; the BritSport yearbook and directory;
i-Gaming Business magazine, serving the international online and mobile gaming
industry; a range of high-value special reports; and TV Sports Markets, a
subscriber-only newsletter analyzing and reporting on television sports rights.



In the twelve months to November 2005, SBG broke even on a turnover of #1.7m
(unaudited) and had net current liabilities of #129,000 at the period end.
Within Electric Word the business is expected to be immediately earnings
enhancing.



Commenting on the acquisition, Julian Turner, Chief Executive of Electric Word,
said:



"SBG is a highly complementary acquisition for Electric Word.  It strengthens
our Sport Division and brings in valuable new competencies in media sales. The
business of sport is a high growth market and the addition of SBG's titles to
our own portfolio of sports information products creates an excellent platform
for growth, particularly in the run up to the 2012 London Olympics when we
expect to benefit from the increasing interest in sport and its commercial
development."



The total maximum consideration of #2.74 million comprises an initial
consideration of #2.49 million and contingent performance-related consideration
of up to #250,000.  The initial consideration is made up of #1.5m payable in the
form of 18.75m new ordinary shares in Electric Word and #987,500 of preference
shares convertible at 10p after two years, during which time up to #625,000 may
be redeemed at the Company's option on payment of interest at a rate of 2% per
annum. The contingent payment of up to #250,000 is payable in 2007 conditional
on SBG meeting agreed performance criteria in 2006 and 2007.





As a result of the acquisition Sussex Trading Company Ltd ("STC") will become
the largest single shareholder in Electric Word plc. STC is owned by Stewart
Newton, the founder of Newton Investment Management. Stewart Newton commented:



"The acquisition by Electric Word will benefit SBG's clients through its
stronger infrastructure and by enabling a broader range of services. Electric
Word is a dynamic publisher operating in very exciting markets. I look forward
to sharing in its future growth and development for many years to come."



                                      ENDS



Notes to Editors

Electric Word is a specialist information company comprising two divisions:
Public Sector Management Information and Sport. Electric Word employs many
publishing formats, including newsletters in both paper and electronic media,
conferences, books, special reports and online training. It has a particular
strength in renewable subscription products, which last year accounted for 72%
of turnover.



Enquiries:


Julian Turner, Chief Executive
Electric Word plc
020 7954 3470


Tim Spratt / Kim Muckle
Financial Dynamics
020 7831 3113


Matthew Robinson
Panmure Gordon & Co
020 7459 3607






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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