Acquisition

RNS Number:0414N
VI Group PLC
01 December 2006




RNS Release

1 December 2006

                                  VI Group plc

                         ("VI Group" or "the Company")

                           Acquisition of Camtek Ltd.

VI Group plc (AIM: VIG), a leading supplier of CAD/CAM software to the mould and
die sector, has yesterday acquired the entire issued share capital of production
CAM software specialists Camtek Ltd. for a total cash consideration of #2.77
million, payable over two years. The consideration is payable as #2.2 million
immediately with the balance payable in two equal instalments on the first and
second anniversary of the close. The acquisition has been partially funded by a
#1.9 million loan provided by Fortis Bank S.A./N.V. The remainder of the
consideration will be funded from the cash resources of the Company.

For the 12 months ended December 2005, Camtek made gross profit of approximately
#0.9 million and profits before tax of approximately #0.3 million on turnover of
#1.9 million. Camtek is VI Group's largest acquisition since the Company listed
its shares on AIM in 1998. It will be immediately earnings enhancing and will
increase Group turnover by around 20%, making it one of the largest independent
CAD/CAM specialists in the UK.

By purchasing Camtek, VI Group acquires a significant team of CAM specialists,
complementing VI Group's existing software team, resulting in a greater
concentration of expertise and clients requiring Computer Aided Design
solutions. The net assets acquired, amounting to #755,211, include Camtek's
offices in Malvern, Worcestershire valued at #368,500.

Founded in 1983, Camtek developed the world-renowned Production Engineering
Productivity System software (PEPS), which is used to drive a number of
production technologies including laser cutting, wire Electrical Discharge
Machining (EDM) and Computer Numerically Controlled (CNC) turning and milling
machines.

Camtek's products are used worldwide in over 60 countries and are sold through a
network of international machine tool manufacturers and distribution partners.
Its principal geographical sales markets include Japan, Germany, Italy, UK and
North America. The PEPS software is used by thousands of sub-contractor and
production organisations to quickly generate accurate and complex components.

Don Babbs, Chief Executive of VI Group, commented:

"This is a major acquisition with immediate benefits. As well as enhancing Group
earnings from day one, it gives the Group entry into a much wider marketplace.
It also provides an opportunity to work with the PEPS developers to introduce
the same type of outstanding productivity that we have already achieved in the
mould and die sector. In addition, we would also expect to use our overseas
sales and distribution network to increase sales of the PEPS product range."

Brian Warner, Managing Director of Camtek, added:

"The synergy of our joint products and development activities, coupled with the
close proximity of VI Group headquarters and the size of its overseas network,
will allow us to increase the visibility and penetration of our PEPS CAM
solutions around the world."

The sellers were advised in the transaction by Private Acquisitions.

For further information please contact:               

VI Group plc                                          Tel: 01453 732 900                                
Don Babbs, Chief Executive
Julie Randall, Finance Director

Gresham PR Ltd.                                       Tel: 020 7404 9000     
Neil Boom

Corporate Synergy Plc                                 Tel: 020 7448 4400
Brian Stockbridge




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

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