Claremont Technology Group expands state and local government practice with TDS acquisition.

BEAVERTON, Ore.--(BUSINESS WIRE)--April 10, 1997--Claremont Technology Group (NASDAQ:CLMT), a leading systems integrator, today announced that it has completed the acquisition of The TDS Group, Inc. (TDS), a privately-held company that develops and markets its Child Care Management System( (CCMS), a client/server software application, to state and local departments of health and human services.

In making this announcement, Paul Cosgrave, Chairman and CEO of Claremont Technology Group stated, "We believe that TDS' product offering and focus on the health and human services sector will be highly synergistic with our state and local government practice. By combining our industry expertise in state and local government with TDS' reusable software, Claremont will offer technology and business solutions that can be leveraged within the health and human services sector."

Financial terms of the agreement were not disclosed. TDS specializes in developing comprehensive information systems for government and non-profit organizations.

Steve Hawley, Senior Vice President of Claremont's State and Local Government Practice stated, "This acquisition is a strategic addition because it will allow Claremont to further augment its established relationships with state and local governments through additional product offerings. The enactment of the Welfare Reform Act is expected to create increased demand for the Child Care Management System."

More About Welfare Reform Act

The Welfare Reform Act will require state and local government agencies to automate the coordination of numerous reimbursement programs and to maintain data on parents, children and providers. This will be a driving force for agencies to upgrade, and in some cases, entirely replace their existing systems to meet the new requirements.

More About CCMS

CCMS is uniquely positioned as a premier application addressing this vital need which challenges state and local agencies now and in the future. Currently installed state-wide in Tennessee, CCMS can be adopted by other states facing the same reporting requirements imposed by the Welfare Reform Act. The Child Care Management System is a fully integrated system comprised of three major functional components: eligibility and client management, provider management and payments and funder billing and reporting.

CCMS supports the efforts of the child care administrative staff and can improve service to child care providers and the clients while lowering operating expenses through the automation of tasks currently being performed manually.

More About Claremont Technology Group

Claremont Technology Group, a recognized leader in the systems integration industry, delivers information technology services to clients in select industries with a high demand for technology-based business solutions. Focusing on the customer care needs of its clients, Claremont's services are provided to large organizations involved in markets that are experiencing dynamic change. Using its extensive industry-specific expertise, Claremont designs, develops, and deploys strategic products and other reusable software that delivers core elements of customer care solutions to its clients in its target industries.

With headquarters in Beaverton, OR, Claremont Technology Group has grown to over 600 employees in 14 offices located throughout the United States, Canada, Europe, and Australia. The Company's web site is located at http://www.clrmnt.com . -0- Note to editors: All product names contained herein remain the trademarks or registered trademarks of their respective companies.

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Claremont Technology Group

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