Sale of trade and assets of US operations

24 October 2011

RM plc

Sale of trade and assets of US operations

RM plc ("the Group") issued a Trading Update and Strategic Review on 29 September 2011 stating that after reviewing the Group's Education Technology international strategy, the Board had decided to dispose of the former Computrac business in the USA. It was confirmed at that time that Heads of Terms had been signed with a potential purchaser. The transaction terms have now been agreed and are set out below.

Prior to restructuring, the Group's US operations consisted of the former Computrac classroom products business and an Education Software products and services business. Agreement has been reached with Troxell Communications Inc for the sale, on 21 October 2011, of the trade and assets relating to the former Computrac business. The estimated cash consideration of £3.0m is subject to net assets at completion and will be retained within the Group to meet operational requirements.

The Group's US Education Software trade will continue through the Group's 100% held US subsidiary RM Group US LLC.

Gross assets subject to disposal were £6.6m at 31 March 2011 and for the year to 30 September 2010, this business contributed an estimated £1.0m to Group profit before tax. It is expected that the business being sold will be loss making during the period from 1 October 2010 to completion.

The transaction is part of the Group's wider strategic review targeted with delivering a more focussed, restructured Group. The continuing US Educational Software business will be appropriately re-sized to a level commensurate with the opportunities being pursued.

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