K3 Business Technology Group Regulatory News (KBT)

AIM: KBT

K3 BUSINESS TECHNOLOGY GROUP PLC

("K3" or "the Group")

Trading Update

K3, which provides and supports Enterprise Resource Planning software, hosting and managed services to the supply chain industry, is pleased to provide the following update on trading for the first half of the financial year ending 30 June 2014.

The Group's trading in the first half of the financial year has been in line with management expectations. K3's return to growth is principally being driven by an improvement in the performance of the Microsoft UK Division and the successful launch of a major new Microsoft Dynamics solution, "ax | is fashion", with an enhanced version on track for release in mid 2014. The Board is pleased with the encouraging level of demand for this solution and with the order wins secured in recent months. Continuing momentum in the Microsoft UK Division and ax | is fashion sales, together with the improving performance of the Managed Services Division, will help to underpin forecast results for the full financial year.

Half year results for the six months ending 31 December 2013 are expected to be published in mid March when the Directors will comment further on current trading.

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