XPT Xploite

    RNS Number : 2402H
  XploiTe PLC
  03 November 2008
   

    3 November 2008

    Xploite plc

    Disposal raises �3.3 million

    Xploite plc ("Xploite", "the Group", AIM: XPT), the operator and aggregator of strategic and high growth IT services businesses, has
completed the sale of the legacy monitoring software solutions part of the Itheon business to Bluechip Customer Engineering Limited
("Bluechip") for �3.3 million in cash, payable on completion.  The Group will realise a profit on disposal of this business of at least �1
million in the year to 31 October 2008. The proceeds from the sale will be used to pay down the Group's borrowings.

    The business being sold specialises in the development and distribution of server monitoring technology. It is based in Welwyn Garden
City and has nine employees and in the year to 31 October 2008, the business generated a profit before tax of �391,000.

    Xploite has also today published separately a year end trading update stating that the Group's pre-tax profit before amortisation is
expected to be substantially ahead of current market expectations for the year to 31 October 2008.  

    In addition to the legacy monitoring software solutions business, the Group has sold the Itheon brand. Separately, the Group transferred
out of the Itheon business into a new entity, Storage Fusion, the Storage Resource Analysis (SRA) software business. This business includes
the substantial IPR which Xploite has developed during the last six months and a number of other SRA product derivatives that the Group
expects to bring to market shortly.

    The Group has recently secured two significant SRA licensing agreements with follow on royalties with Computer Data Source, Inc. (30
October 2008) and with GlassHouse Technologies, Inc. (28 October 2008).

    The original Itheon business encompassing the legacy software and some storage resource IP was acquired in October 2007. Since then
Xploite has invested in developing the IP business into a notable operation, Storage Fusion, resulting in the two recent license and royalty
agreements. Xploite has also transferred the Group's Anix customers from the IBM Tivoli licences onto the more cost effective Itheon
monitoring software. This resulted in significant cost savings for Anix.  As part of the sale agreement, Anix will continue to use the
Itheon software on license from Bluechip at the same charge rate.  

    Ian Smith CEO Xploite said:

    "Our strategy is to identify, acquire, consolidate and develop businesses in the IT services sector.   This is exactly what we have done
with Itheon. After the purchase we invested in developing the key IP and are already seeing good returns from Storage Fusion; secured
material cost savings by switching customers; and are now selling for a notable profit, the parts of business which are not core to our
growth and development.  

    "Storage Fusion's recent contract wins have given us the considerable confidence to focus on this area and future generations of SRA".

    Enquiries

 Xploite plc www.xploite.com         0870 737 2001
 Ian Smith, Chief Executive Officer
 Robert Arrowsmith Finance Director

 KBC Peel Hunt Ltd                   0207 418 8900
 Oliver Scott/Nicholas Marren

 College Hill                        020 7457 2020
 Adrian Duffield / Jon Davies


    About Xploite
    Xploite is an IT services group that creates value by exploiting opportunities within the rapidly evolving IT services marketplace.
Xploite is an aggregator and consolidator of a portfolio of businesses that are focused on high growth segments in this market.

    Storage Resource Analysis - SRA
    SRA software is a platform independent software solution. SRA provides full transparency into how an organisation's storage estate is
installed, configured, allocated and assigned and is unique in being delivered as a hosted Software as a Service (SaaS) solution hosted
solution that allows customers to log onto a website and operate the software themselves.



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