K3 Business Technology Group Regulatory News (KBT)

AIM: KBT

3 November 2015

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Company")

Major contract win

K3, which provides and supports software, hosting and managed services to the retail, manufacturing and distribution sectors, is pleased to announce a major contract win for its "axlis fashion" solution with K - Mail Order GmbH & Co ("KLiNGEL"), one of Germany's largest online fashion retailers. The contract has been secured through K3's channel partner network and will help to underpin the results for the current financial year and generate ongoing revenues from software licence and support renewals.

The contract is K3's second channel partner win in Germany, following the agreement with TriStyle Mode GmbH ("TriStyle") announced on 15 September 2015, and has been secured through a new channel partner relationship. The expansion of the channel partner network remains a key area for the Company alongside its direct sales.

"axlis fashion" is a functionally rich solution, authored by K3 and powered by Microsoft's Dynamics AX, that meets the needs of the fashion and apparel industry. The new system will enable KLiNGEL to strengthen its product development and optimise its purchasing processes.

David Bolton, CEO of K3, said:

"We are delighted that KLiNGEL has chosen our "axlis fashion" solution. The contract is the second to be secured through our channel partner network in Germany, after our earlier win of TriStyle. Sales through our channel partners are a key growth opportunity and we remain focused on driving these third party wins and continuing to develop our channel partner network."

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About KLiNGEL

Headquartered in Pforzheim, in the southern state of Baden-Württemberg, KLiNGEL, is one of the largest mail order companies in Germany. The group also has subsidiaries in, Austria, Belgium, the Czech Republic, Finland, France, the Netherlands, Norway, Russia, Slovakia, Sweden and Switzerland. In contrast to many other mail order companies, KLiNGEL's target customer is aged 50 years and over. The products are available online as well as through the standard catalogue and comprise men's and women's clothing (KLiNGEL's own brands include Laura Kent, Roger Kent and Paola Felix Modewelt), footwear, jewellry and watches, home textiles, accessories, home and garden furnishings, electrical appliances, furniture and gifts.