Acquisition of CSF GmbH
June 16, 2006 -

Kewill Systems plc (LSE: KWL) ("Kewill" or "the Group"), provider of supply chain control software and solutions, today announces the acquisition of CSF GmbH for an initial consideration of €4.4 million.

CSF is a privately-owned, leading provider of freight forwarding and customs clearance solutions in the German and Swiss markets. The company has over 70 employees with offices near Frankfurt, Hamburg, Dusseldorf and Basel in Switzerland. CSF’s customs product Zabis and freight forwarding application B2®Logistik are used by over 700 Logistics Services Providers (LSPs), customs agencies and shippers including DHL Group, Exel, TNT, Fedex, UPS, Deutsche Bahn, Schenker, Panalpina, Hellmann, Yusen and Bax Global, airlines such as Lufthansa and Air Canada and enterprise shippers such as Volkswagen, Ford, Samsung and Nintendo.

This announcement further enhances Kewill’s geographic coverage for its international trade and logistics solutions. Together, Kewill and CSF solutions can support 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, with this acquisition, further extended 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, CSF will become part of Kewill’s Trade and Logistics business and Wolfgang Schwab and Frank Povolny will remain in place as joint Managing Directors of the German and Swiss operations. They will join the European management team of Kewill’s Global Trade & Logistics business. All other CSF management and staff will remain with the Kewill Group.

The initial consideration for the acquisition was satisfied on completion by €4.4 million (£3.0 million) in cash. In addition, at various dates in the 30 months following completion, up to €4.25 million (£2.9 million) will be payable in cash as deferred consideration subject to the attainment of performance criteria related to revenues and profits. In its latest financial year ended 31 December 2005, CSF made an unaudited profit before tax of €246,000 (£170,000) after non-recurring management charges, on revenues of €6.4 million (£4.4 million), and had gross assets of €2.7 million (£1.8 million) at that date.

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

"This acquisition is part of our stated strategy to expand our supply chain execution capabilities into leading trading communities around the world. This establishes Kewill Global Trade and Logistics as the leading provider of software solutions to Trade, Transport and Logistics companies with a presence in the US, Belgium, Germany, Netherlands, Switzerland and UK and partnerships in France, Hungary and Poland. With over 600 staff in Europe, Far East and USA, we can deliver and support our integrated solutions for (Air + Sea) Freight Forwarding, Customs, Trade, Transport and (bonded) Warehousing to over 1,000 customers in this global market. In addition to the extension of our geographic footprint, with CSF we can also expand our ability to provide hosted solutions supplied for a monthly fee, a model often preferred by small and medium enterprises."

For further information please contact:

Kewill Systems plc Tel: 020 8971 6774
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 34 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, Ecommerce 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 A.N. Deringer, DHL Exel, Fedex, DVS Frans Maas, General Motors, General Electric, JD Williams, Legal & General, Littlewoods, Marks & Spencer, Mazda, Mitsubishi, Panalpina, Philips, Pratt & Whitney, Sainsbury's, Schenker, Texas Instruments, The Bodyshop, TNT, Toys R Us and UPS.

About CSF

CSF is the leading supplier in Germany and a leading provider in Switzerland of software and services for customs clearance, logistics and air and ocean freight handling.

For more than 20 years CSF has worked with LSPs, shippers, customs agencies, airlines and cargo handlers to support their critical business processes. Among these customers are Air Canada, Bax Global, Deutsche Bahn, DHL Group, Fedex, Hellmann Logistics, Lufthansa, Panalpina, Swissport, TNT, UPS and Yusen.