Core Projects & Technologies

Core Projects & Technologies Ltd has informed that the Company has finalized multiple acquisitions in the UK and USA, consolidating its position as a dominant player in the Education Sector. The acquisitions will achieve completion by end of September, 2007.

An IT Company with a strong focus on Education Products and Solutions, the Company will achieve a market leadership position in the Global Education space with these acquisitions. The acquisitions bring with them products and solutions which the Company currently does not have. With the addition of these products, the Company is well on its way to becoming an end-to-end solutions provider in the Global Education space.

In the UK, the Company has signed a Business Transfer Agreement with Azzurri Education and a Heads of Agreement with Hamlet Computer Group.

Azzurri works to increase educational attainment through the innovative use of technology. Its technology solutions help teachers teach and learners learn. Azzurri has over 10 years’ experience of delivering a wide range of technology products, services and educational software to over 1,000 schools in the UK and some 12 local authorities. Azzurri is one of only two Companies in the UK that hold all the four Beeta Accreditations for Interactive Technologies, Network Installation, Internet Safety and Laptops, together with a strong portfolio of recognised industry accreditations.

The second acquisition in the UK, the Hamlet Computer Group, was founded in 1973 and has a wealth of experience in the provision of high quality I.T. Systems to high profile organisations around the world. Hamlet's clients include National Examinations Authorities in the UK, seven countries in Africa and three countries in the Caribbean.

In the USA, the Company has acquired the global businesses of KC Management Group and its subsidiaries,. KC Management Group is one of the top US Education Management Companies who are key trusted advisors to many states and local school districts. KCMG currently provides services to School Systems in the states of 1) California, 2) Illinois, 3) Minnesota, 4) Florida,5) Georgia, 6) South Carolina, 7) Tennessee, 8) Texas, 9) Massachusetts, 10) Ohio. KCMG serves over 2500 schools and over 1.6 million school students in these states. The KC Management Group (KCMG) is a trusted advisor to many education and Government entities providing a full spectrum of services in system integration, implementation of Student Information system, Curriculum systems, Special Education systems, business consulting, Information Technology, Quality Assurance, and Organizational Development.

The Acquisition of KCMG is a strategic fit as it provides the Company with the right blend of expertise in management, processes, and best practices for its current and future customers.

The above acquisitions will add more than a dozen products to the Company's existing repertoire of Education products. These include EdPortal™, a comprehensive systems integration solution meeting the needs of today's school districts; Edmastery™, a complete web-based item banking, assessment administration, and standard-based reporting solution; EdOps4™, a web-based operations management solution; EdMiner™ an easy to learn student performance solution for making data-driven solutions; EdFunds™, an online e-rate tool for managing request, awards, and e-rate funding; EdAcademy™, a powerful online professional development toolset; TALMOS Primary, which helps teachers deliver exciting lessons, share lesson resources and evaluate lesson effectiveness; TALMOS Attendance, a sophisticated pupil and lesson registration system designed to ease teacher workload raise lesson attendance; TALMOS Gateway, a flexible, web-based CMS tool that allows schools to manage and update their own websites, TALMOS Classroom Manager and TALMOS Classroom Filter, practical tools to assist teachers in controlling the class and classroom, TALMOS Guardian acts as a comprehensive safety net across all applications, including chat rooms and email; FAIM - the most comprehensive, reliable and cost effective exams management system available to assessment & qualifications providers worldwide and is a web-enabled state of the art system that manages ANY type of assessment process and finally, The NFP Series - an integrated Welfare & Financial Management System for charitable organisation and associations in the Not for Profit Sector.

The addition of these products to the Company's existing portfolio of Education Solutions will enable the Company to strengthen its position in the Indian Education Sector. These products incorporate the critical software components required by Administrators and Educators in India to successfully implement Mission Mode programs like the Sarva Siksha Abhiyan (SSA). With time tested and "go to market" products readily available with it, the Company will be in a position to substantially reduce the implementation period of’ programs like the SSA.

On completion, the acquisitions will immediately add USD 45 million annually to the revenues of the Company. All the acquired businesses are operating at 12-15% EDT margins. With the migration of product development to the Company's Global Delivery Center at Mahape, the Company expects to improve these margins to about 20-22%. Revenues will also see a significant increase, since the Company will cross sell all its products to the existing and newly acquired customers. The acquisitions will cost the Company about one times the revenues of the acquired businesses, which will be about USD 45 million. This will be funded out of the FCCB proceeds which the Company had raised in May, 2007.