RNS Number:2082Z
Watermark Group PLC
26 July 2002

For immediate release

                              Watermark Group plc
                  Acquisition of Update International Limited

Watermark Group plc ("Watermark"), the provider of marketing support services to
the international travel industry, has agreed to acquire the entire issued share
capital of Update International Limited ("Update"). Update is a Hong Kong based
supplier of passenger care and comfort items to airlines and travel related
businesses. £1.19m is payable in cash on completion and up to a maximum of
£1.17m will be paid by way of deferred consideration in Watermark shares subject
to Update's future performance.   Completion will take place on 31 July 2002.

In the year ended 31 March 2002, Update achieved a turnover of £7.35m with a
profit from operations before non-recurring items and before tax of £0.36m.  The
accounts for that year show a loss before tax, after non-recurring items,
attributable to the net assets being acquired of £10,000.  The value of the net
assets being acquired totals £0.61m.

John Caulcutt, Chief Executive of Watermark, commented "The acquisition of
Update brings many benefits to Watermark, not only because Update is generally a
major competitor to our core business but also because of its strong links with
Far East airlines, including the major carriers within mainland China - an area
which we have targeted for expansion following China's entry into the World
Trade Organisation last year.

"The acquisition will improve Watermark's product portfolio by giving us a
stronger foothold in the supply of meal service equipment as well as increasing
our buying power with suppliers.  Update has 33 airline clients which are new to
Watermark, and the move is a major step towards our aim of providing a total '
above the wing' support services package for airlines."


ACQUISITION DETAILS:

Net assets of £0.61m will be acquired for cash on completion.  The remainder of
the consideration is made up as follows: an initial amount of £1.16m, being five
times the post tax equivalent of Update's operational profit for the year ended
31 March 2002 is payable as to £0.58m in cash on completion and £0.58m by the
deferred issue of shares in Watermark.  Thereafter, if historic operational
profit levels are not met in the two years ended 31 March 2003 and 31 March
2004, the number of shares to be issued relating to the initial element will be
reduced and/or a corresponding cash adjustment might be made.  If historic
operational profit levels are exceeded in those two years, additional shares
will be issued up to a maximum of £0.59m.

Mr J Richard Duffy and Mr David Weil will remain as directors on the Board of
Update.

(Exchange rate of £1 = HK$12.3)

For further information on Watermark please visit www.watermarkplc.com or
contact:

John Caulcutt, Chief Executive                    John West
Crispin Quail, Finance Director                   Rosie Brown
Watermark Group plc                               Tavistock Communications
Tel: 01489 897800                                 Tel: 020 7600 2288
e-mail: info@watermarkplc.co.uk                   e-mail: jwest@tavistock.co.uk



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