Acquisition

RNS Number:5190A
Proactive Sports Group PLC
06 July 2004



6 JULY 2004

                            PROACTIVE SPORTS GROUP PLC
                      (to be re-named FORMATION GROUP plc)

                        ACQUISITION OF SPONSORMATIC APS

Proactive Sports Group Plc (the "Group"), a leading holistic football business,
is pleased to announce the acquisition of Sponsormatic ApS "Sponsormatic", a
perimeter advertising company based in Copenhagen, Denmark servicing Northern
Europe.

TERMS OF THE ACQUISITION:

-  Initial consideration of DKK 1,400,000 (#127,000 at current exchange
   rates*) and a maximum total consideration of DKK 3,900,000 (#353,000).

-  Maximum deferred performance-related consideration payable of DKK
   2,500,000 (#226,000).

-  To achieve the maximum deferred consideration Sponsormatic will achieve
   cumulative profits after tax of DKK 4,399,000 (#398,000) in the 38 month 
   period to 31 August 2007.

SPONSORMATIC:

-  Perimeter advertising at football and handball grounds across Scandinavia

-  Excellent fit with the Group's existing Sports Marketing operation "Fox
   Advertising".

-  Sponsormatic has strong record of year on year revenue growth.

-  Revenues of DKK 7,025,000 (#635,000) for the year ended 31 December 2003,
   an increase of 40% from the previous year.

-  PBT of DKK 72,000 (#7,000) for the year ended 31 December 2003 (FY 2002:
   loss before tax DKK 5,000 (#500) ).

* Exchange rate of DKK 11.06 per #1

Neil Rodford, Chief Executive, commented:

"This acquisition represents another step forward in the implementation of our
strategy to develop the Group as the market leader in providing a complete
holistic service in football for both brands and athletes. We continue to make
significant progress in our Sports Marketing proposition and the addition of
Sponsormatic will further strengthen our service offer throughout Northern
Europe.

I am delighted to add further depth to an already experienced management team.
They come with a pedigree in brand management and with an excellent network
throughout the Scandinavian region. They have a proven business model and we all
very much look forward to working with the Sponsormatic management team."


Enquiries:

Proactive Sports Group PLC                       Tel: 01625 536411
Neil Rodford, Chief Executive
Mark Page, Finance Director

ICIS Limited                                     Tel: 020 7628 1114
Archie Berens
Caroline Evans-Jones






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

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