AQL Aquilo

    tRNS Number:8848E
Aquilo PLC
20 June 2006


                     Aquilo Plc ("the Company" or "Aquilo")

       Aquilo announces the acquisition of IT Solutions (GB) Ltd ("ITS")


Aquilo plc is pleased to announce that it has acquired one hundred percent of
the share capital of ITS on 19 June 2006.


ITS is a specialist provider of valuation, replacement and repair services of IT
equipment to the insurance industry.  It also supplies equipment and business
continuity services to companies and organisations. ITS's headquarters are
located near Leeds, Yorkshire.


ITS will form an integral part of Aquilo's property claims services and will
broaden the existing supply chain services offered by Aquilo.  The controlling
shareholder of ITS, Adam Caulfield, will join Aquilo as joint managing director
of ITS and will work closely with Mike Dean, the managing director of Aquilo
Business Solutions.


The acquisition price is a maximum of #1.5 million which will be satisfied by a
cash payment of #536,000 and the placing of 50,800,000 new ordinary shares of 1p
each at a price of 1.75p with a maximum deferred consideration of a further
4,285,715 ordinary shares at the same price.


The cash element is being funded by the issue of #500,000 of convertible loan
stock to an existing shareholder, Veer Palthe Voute.  The loan stock has a four
year maturity and an annual interest rate of 8% payable semi-annually. The
conversion price is 2.29p.  Aquilo has the option to require conversion once its
share price reaches 4.01p.


In the last full year of trading (the year ended 31 July, 2005) ITS had a
turnover of #11.660 million, a gross profit of #1.973 million and a pre-tax
profit of #0.075 million (after proprietors drawings and exceptionals). It is
being acquired with a minimal positive net asset value. ITS, net of proprietors
drawings, will contribute on current run rate, in excess of #45,000 per month to
Aquilo.  This is before business synergies which are anticipated to be in excess
of a further #50,000 per month.  This will considerably expedite Aquilo's return
to profitability.


During the current year ITS has focused on growing its insurance related
activities, as these provide better opportunities for growth in volume and gross
profit. The combination with Aquilo will further enhance these developments.


Aquilo is setting aside an exceptional cost of #0.4 million to cover related
deal costs and to assist integration in order to expedite profit growth. An
additional benefit to Aquilo is that the software systems developed by ITS will
enable it to improve efficiency in its existing supply chain businesses and
facilitate further growth.


Clive Nicholls, Aquilo CEO said "We are delighted to have completed the
acquisition of ITS.  Adam has built a substantial and successful business which
is highly complementary to Aquilo's existing activities and strengthens our
platform for growth.  The combination of this acquisition and the impact of new
customer growth in our existing motor and property claims businesses should
result in Aquilo becoming profitable and cash flow positive after charging the
investment costs in starting up Aquilo Inspection & Reinstatement Services
Limited".


Adam Caulfield, the founder of ITS said, "I am very pleased to be joining
Aquilo. I am excited by the wider opportunities open to ITS and look forward to
growing shareholder value for all concerned".


Enquiries:

Alan Frame, Equity Development,             Tel: 0207 405 7777

Alasdair Robinson, Noble & Company Limited, Tel: 0131 225 9677


Notes to Editors:


Aquilo operates in the UK general insurance market, as a specialist insurance
claims management and advisory group.  It seeks to achieve control of the claims
process by utilising innovative IT and Human Resource skills. It is traded on
AIM.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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