Result of Open Offer

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

K3 Business Technology Group plc

("K3", "Company" or "Group")

Result of Open Offer

On 12 June 2017, K3 announced details of a Placing and Open Offer to raise gross proceeds of approximately £8.5 million through the issue of up to 6,073,198 New Ordinary Shares at a price of 140 pence per share, with 5,353,214 shares subject to the Placing and up to a further 719,984 shares to be issued through the Open Offer.

The Open Offer closed for acceptances at 11.00 a.m. on 29 June 2017. K3 is pleased to announce that it has received valid applications under the Open Offer, including those received under the Excess Application Facility, in respect of 437,108 Open Offer Shares from Qualifying Shareholders. This represents approximately 60.7 per cent. of the Open Offer Shares. Qualifying Shareholders who have validly applied for Open Offer Shares and Excess Shares will receive their application in full.

The Placing and Open Offer remain conditional, inter alia, upon the Resolution being passed at the General Meeting to be held at 10.00 a.m. on 4 July 2017 and Admission. K3 expects to announce the results of the General Meeting as soon as practicable on 4 July 2017 after the meeting concludes. It is expected that Admission will become effective on 5 July 2017.

Capitalised terms not otherwise defined in the text of this announcement have the meanings given to them in the Company's circular dated 12 June 2017.

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