HNT.L Regulatory News (HNT)

9 July 2010

Huntsworth plc acquires ScopeMedical Limited 

Strengthens Huntsworth Health's presence in Medical Communications

Huntsworth PLC ("Huntsworth"), the international public relations and healthcare communications group, announces today that it has acquired the entire issued share capital of ScopeMedical Limited ("ScopeMedical") for cash consideration of £4.6 million with further performance related consideration.

ScopeMedical is a fast growing international medical communications company offering professional services to global pharmaceutical and biotechnology companies headquartered in Europe and America. As such this acquisition will expand Huntsworth Health's blue-chip client list and our reach within the global market.

Financial Terms

ScopeMedical has been acquired from Jeremy Williams, William Allingham and one other shareholder. The initial consideration is £4.6 million in cash, of which £0.67 million will be deferred for 12 months. Deferred consideration may be payable, with an interim payment based on the profits for the two years to 31 December 2011 and a final payment based on the profits for the four years to 31 December 2013.

Payments of deferred consideration are conditional, inter alia, upon profit growth and may be satisfied by cash or partly in Huntsworth shares, at the option of Huntsworth. The maximum total consideration payable is £11 million.

For the year ended 31 December 2009 ScopeMedical profit before tax was £0.76 million. The consolidated gross assets at 31 December 2009 were £2.49 million.

About ScopeMedical

The ScopeMedical talent includes experienced pharmaceutical marketers, scientifically-qualified editorial staff and a studio of creative designers all working together to provide innovative strategic communications and medical education solutions for pharmaceutical companies' international headquarters.

ScopeMedical offers its clients strategic communications, advocacy development, publication planning, event management and e-healthcare. The Company has grown by successfully winning and developing clients with products at Phase II of their development lifecycle. This approach complements Huntsworth Health's strategy of offering clients solutions at every stage of their product development from discovery to patent expiry.

ScopeMedical's growth has been driven by Jeremy Williams and William Allingham who will both continue to lead the business under the Huntsworth Health brand and develop it further within Huntsworth Health's global Medical Communications operations.

Neil Matheson, Chief Executive of Huntsworth Health, welcomed today's deal:

"We are delighted to welcome ScopeMedical to our family of best-in-class agencies. ScopeMedical is one of Europe's most respected medical communications agencies, working with blue-chip clients on the basis of strong business relationships, excellence in strategic thinking and the highest quality scientific and medical content. This best in class reputation together with international reach will contribute to the expansion of the quality services that we offer to the pharmaceutical sector."

Jeremy Williams, Chief Executive Officer of ScopeMedical said today,

"In order to continue to realise our vision of being a world leader in medical communications, we were looking for a partner that would enable us to expand our service offering while also expanding our business reach on a global basis. I am thrilled that we found the perfect partner in Huntsworth and I am very excited about the synergy we will have with Huntsworth Health."

Sally Withey, Group Chief Operating Officer, commented:

"The acquisition of ScopeMedical will further strengthen our Huntsworth Health offer which now constitutes approximately 27% of Group revenues.

The Group expects to meet management's profit expectations in the first half of this year and looking ahead for the full year committed revenues have increased from 80% announced 9 weeks ago to 84%. Our interim results will be announced on the 26th August 2010."

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