RNS Number:2615J
Watermark Group PLC
27 March 2003

Strictly embargoed until: 07.30, 27 March 2003



                              WATERMARK GROUP PLC

                     ACQUISITION OF M'N'H RECYCLING 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 M'n'H Recycling Limited ("M'n'H").  M'n'H is based in Sussex and
recycles airline amenity and other related travel products.  Of the
consideration, #410,662 is payable in cash on completion (to include net assets)
and in addition, up to a maximum of #1,268,584 will be paid by way of deferred
consideration in Watermark shares ranking pari passu with those in issue at the
price of 88 pence being that prevailing at the close of business on the date
prior to the agreement subject to M'n'H's future performance.

In the year ending 30 November 2002, M'n'H achieved turnover of #1,498,000 with
profits before tax of #182,675.  The value of the net assets being acquired
totals #248,796.

John Caulcutt, Chief Executive of Watermark, commented "The acquisition of M'n'H
is a further step towards our aim of providing a total "above the wing" support
services package for airlines.  The opportunity provided through the services
offered by M'n'H to reduce airlines' operational costs will further expand the
services which Watermark is able to provide.  As we stated when Watermark's
preliminary results for the year ending 31 December 2002 were announced on 19
March, Watermark has consistently out-performed market expectations and has
again produced a set of record results which reflected the success of
acquisitions made during that period.  These have enhanced the range of goods
and services Watermark is able to supply to the airline and travel sector and
has helped us to reduce their costs through outsourcing. This acquisition is
consistent with and will build upon that success."

The agreement is conditional only upon clearance being received by the Inland
Revenue pursuant to the terms of Section 138 of the Taxation of Chargeable Gains
Act 1992 and Section 707 of the Income and Corporation Taxes Act 1988 which has
today been sought. Completion will take place as soon as possible after receipt
of such clearance which it is anticipated will be in the second half of April
2003.


Acquisition Details

Net assets of #248,796, to be adjusted downwards to reflect interim dividends
paid in 2003 of #19,360, will be acquired for cash on completion.  The remainder
of the consideration is made up as follows:-


1. An initial amount of #724,905 being five times the post tax profits
of M'n'H for the year ending 30 November 2002 is payable as to 25% in cash on
completion and as to 75% by the deferred issue of shares in Watermark, at a
price of 88 pence per share, but to be allotted in two tranches in 2004 and
2005, subject to adjustment if historic post tax profit levels are not met in
the two years ending 31 December 2003 and 31 December 2004.


2. If historic post tax profits are exceeded in those two years,
additional shares allotted at the same price will be issued up to a maximum of
#724,905.


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 897 800                              Tel: 020 7600 2288
e-mail: info@watermarkplc.co.uk                 e-mail: jwest@tavistock.co.uk




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