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Civica Demonstrates Strong Momentum With Profits Up 24%

Record results fuelled by public sector focus and services expansion

January 16th 2003

16 January 2003, London…Civica Ltd, one of the UK's most experienced specialist providers of public sector software and services, reported year-end results for the period ending September 30, 2002.

Revenues for the year increased 17.7% to £86.5 million, compared with £73.5 million for the year ended September 30, 2001. The company reported operating profits of £7.7 million, compared with £6.2 million for the year ended September 30, 2001.

"I am delighted to be able to announce strong results," said Simon Downing, chief executive officer for Civica. "In a challenging environment, the company has continued its record of uninterrupted growth. These results underscore our ability to deliver repeatable and referenceable solutions, for which there is significant demand and enthusiasm. They endorse our clear focus on the public sector, where we continue to add value through a broadening range of services. With a growing reputation for helping customers to deliver improved services, Civica is well positioned for further growth."

Civica secured contracts with more than 30 new customers in 2002 across all sectors of its business, including Nottingham City Council, the London Borough of Hounslow, Stockport Metropolitan Borough Council, Toowoomba City Council and the City of Canada Bay in Australia, the National Probation Service, MEPC and the Centre for Engineering and Manufacturing Excellence (CEME). Civica continues to work with more than 1000 public and private sector customers to develop innovative solutions, supplying:
• 45% of Local Authorities in England, Wales and Scotland
• 79% of London Boroughs
• More than 200 Local Authorities in Australia and New Zealand
• 47 out of 53 UK Police Forces
• More than 270 NHS Health Trusts
• More than 200 UK Universities

2002 HIGHLIGHTS
• Ten-year managed services contract with the London Borough of Haringey to host its Parking application and manage infrastructure including handhelds
• Seven year managed services contract with Lincoln City Council to manage Revenues and Benefits applications on an ASP basis

• Multi-million pound order from the NHS Purchasing and Supply Agency to handle their Microsoft Enterprise Agreement
• e-Services implemented at 25% of Australian local government sites
• Local government applications sales, including Mansfield District Council (Council Tax), Stockport MBC (Environmental Health and Trading Standards), Powys County Council (Fleet Management) and East Ayrshire Council (Benefits)
• e-Billing system for West Lothian Council, the first authority in Scotland to deliver email billing for business rates *
• Enforcement sector wins, including South Yorkshire Police, Nottingham City Council (Parking), London Borough of Hackney (Bus lane management) and Meadowhall Shopping Centre
• Automated telephone and Internet payments system for the London Borough of Wandsworth
• Partnerships with Microwarehouse, to supply its customers with Microsoft Select licensing, and with Centerprise, to provide Microsoft software for the Laptops for Teachers scheme
• IT services engagements including infrastructure and .Net Server consultancy for CEME, Windows 2000/Exchange 2000 migration and managed support for MEPC, and Active Directory and Exchange 2000 implementation for NSPCC
• Partnership agreement for development resource at East Devon District Council
• Messaging and security system for St George's NHS Trust

PRO-FORMA OPERATING PROFIT STATEMENT

ENDS

GBP

Y/E 30/11/02

Y/E 30/11/03

Growth

Revenue

£86.5 million

£73.5 million

+17.7%

Operating Profit

£7.7 million

£6.2 million

+24.2%

About Civica Ltd Civica is one of the UK's largest and most experienced providers of specialist software and services to the public sector. Formed in April 2002 from the Sanderson Group's principal public sector serving businesses, the company has an 18-year history of delivering effective software solutions in the UK and Australia, to local authorities, police forces, healthcare, criminal justice and education organisations, and major commercial firms. Civica Services Ltd, a wholly owned subsidiary, is an approved Prime Contractor for software in the UK Government's GCat procurement catalogue.