7 November 2005

Acquisition of Interchain Holding BV Extends Kewill’s global leadership in Supply Chain Execution

Kewill Systems plc (LSE: KWL) (“Kewill” or “the “Group”), the provider of supply chain control software and solutions, today announces the acquisition of Interchain Holding BV (“Interchain”).

Interchain is a privately-owned, Netherlands-based leading provider of sophisticated, integrated, multi-modal supply chain management software to the European market. The company has over 100 employees with offices in the Netherlands, the United Kingdom, Belgium and Germany. Interchain's solution offering, Chainware, is designed for large scale, multi-national Logistics Services Providers (LSP) operating in an international environment. More than 150 customers, including LSPs such as Fedex, TNT, UPS, Frans Maas and DHL, and shippers such as Texas Instruments, Philips and Mitsubishi rely on Interchain business solutions to enhance their performance, profitability and competitive advantage.

The combination of Kewill’s existing international trade, shipping and order management solutions with Interchain’s supply chain offerings creates a powerful single source of software and services to help shippers and logistics providers with the end-to-end management of orders, transportation, warehousing, forwarding, customs brokerage, and ultimate distribution of goods from a single provider with North American and European capability. Visibility throughout the distribution cycle represents a dramatic step forward in enabling logistics providers to accelerate their time to delivery, minimize their costs and maintain control of the goods throughout the export/import process.

Following the closing of the acquisition, Interchain will become an operating unit of Kewill with Ron Vollebregt continuing as Interchain’s Chief Executive Officer and all other Interchain management and staff remaining with the Group.

The initial consideration for the acquisition was satisfied on completion by €11.2 million (£7.6 million) in cash. On the date of completion, net cash was €1.2 million (£0.8 million). The initial net cash consideration therefore amounts to €10 million (£6.8 million) which is equivalent to 1.15 times trailing twelve months revenue to 31 October 2005.

In addition, in each of the two twelve month periods following completion, the amount by which Interchain’s revenue exceeds €8.6 million (£5.8 million) in each year, will be payable in cash as deferred consideration, subject to an overall maximum amount payable of €3.5 million (£2.4 million).

In its latest financial year ended 31 December 2004, Interchain made profit before tax of €559,000 (£380,000) and had gross assets of €4.8 million (£3.4 million) at that date. It is expected that the acquisition of Interchain will be earnings enhancing for Kewill in the financial year ending 31 March 2006.

Mr. Vollebregt, Chief Executive Officer of Interchain, said,

"As a result of today’s announcement and Kewill’s extensive network, Interchain customers now have access to the USA, the largest trading partner in the world, with a single solution and visibility to enable the control of shipments from order to delivery. In addition, the merging of our companies will enhance our ability to service our customers globally.”

Paul Nichols, Chief Executive Officer of Kewill Systems, commented,

"Interchain is a very well managed company with dedicated employees and customers and a strong cultural fit to the Kewill business. We are excited by the many opportunities this acquisition presents, including expansion of our supply chain offerings and expertise, a broader international market for our solutions and future acceleration of Kewill product development. This follows on from our successful acquisitions of Perwill, ShipNow and TradePoint, which have all helped us consolidate our leading position in the global supply chain control market.”

For further information please contact:

Kewill Systems plc
Tel: 01784 410 410
Paul Nichols, Chief Executive
Guy Millward, Group Finance Director

Financial Dynamics
Tel: 020 7831 3113
Juliet Clarke / Hannah Sloane

About Kewill Systems Plc

Kewill Systems Plc is a leading international company dedicated to the development and provision of software and services to manage complex business to business supply chains.

With over 33 years' experience in the supply chain space, Kewill Systems is a long-time innovator of Supply Chain Execution software focusing on order management, transportation management, international trade logistics and visibility solutions for global trading communities.

Over 55,000 customers have trusted Kewill Systems Plc for the management of their supply chain information including household names such as Littlewoods, GM, A.N. Deringer, GE, The Bodyshop, Sainsbury's, JD Williams, Iomega, Marks & Spencer, Toys R Us, Pratt & Whitney, Mazda.