Axon Group plc ('Axon'), the leading Business Transformation consultancy group, announces that its Malaysian subsidiary has tabled a friendly offer to take private JSPC i-Solutions Berhad ('JSPC-i'), a leading SAP Consultancy for the Malaysian, Singapore and Chinese markets. JSPC-i generated revenues of £3.9m in 2006, and it has a track record of working with Axon on a number of assignments.

JSPC-i is listed on the MESDAQ Market of Malaysian stock market, Bursa Malaysia Securities Berhad, and the offer to take private will be by way of a selective capital repayment ('SCR') exercise. The deal value is £6.3m (net of JSPC-i's cash, deposits and short term investments of £3.0m as at 31 December 2006) and this represents a valuation of 1.6 times historic revenues. The total capital repayment will be up to £9.3m, payable in cash, and upon completion, JSPC-i will become a wholly-owned subsidiary of Axon.

Approval for the SCR will be sought from the shareholders of JSPC-i and any regulatory authorities, creditors or related parties. The SCR is also subject to approval from the High Court of Malaya which would be expected later in 2007 and so it is not anticipated that the offer to take JSPC-i private will make a material contribution to the group during this current year.

Steve Cardell, CEO of Axon, said:

'Axon is the largest independent SAP consultancy in the world and JSPC-i adds significantly to our Asian operations and offshore delivery capabilities. Axon's Malaysian Shared Service Centre will employ close to 500 SAP specialists, making it the largest ASEAN SAP centre, and give Axon a three-fold size advantage of its next nearest competitor in Malaysia. The offer to take JSPC-i private also provides a foothold into the rapidly expanding Chinese marketplace where Axon is already seeing strong demand for work from its European and American customers.'

For further information please contact:

Axon Mark Hunter/Iain McIntosh
01784 480 800

Bell Pottinger Chris Hamilton
020 7861 3232