DICOM Group plc Interim Results, Six Months to 31 December 2004.

BASINGSTOKE, England -- Record Pre-tax Profits, Optimistic Full Year Outlook

DICOM Group plc ("DICOM Group")(LSE:DCM), the global leader in the Information Capture market, announces strong results for the six months to 31 December 2004.

Financial Highlights

Group results

--Turnover up 13% to GBP 86.9m (GBP 77.1m), organic growth of 13% in local currency terms

--Gross profit margins up from 40.3% to 41.5%

--Operating profits before goodwill amortisation up 16% to GBP 7.6m (GBP 6.6m); margins up from 8.5% to 8.8%

--Operating profits in local currency terms and adjusted for acquisitions up 16%

--Profits before tax and goodwill amortisation up 20% to GBP 8.0m (GBP 6.7m before exceptional item)

--Adjusted earnings per share up 16% to 26.4p (22.7p)

--Operating activities generated positive cash flow of GBP 6.0m (GBP 5.7m)

--Interim Dividend up 15% to 2.13p (1.85p)

--Net funds of GBP 4.2m (GBP 20.9m at 30 June 2004), after spending GBP 19.8m on acquisitions

Results of Information Capture (IC) Division, representing 92% (88%) of operating profits

--Turnover up 12% to GBP 66.3m (GBP 59.2m), organic growth of 13% in local currency terms

--IC own products and services now account for 58% (56%) of IC sales, up 11% and 27% respectively in local currency terms and adjusted for acquisitions

--Gross profit margins increased to 50.5% (47.6%)

--Operating profits up 22% to GBP 7.0m (GBP 5.8m); margins increased from 9.7% to 10.6%

--Operating profits in local currency terms and adjusted for acquisitions up 22%

Operating Highlights

--Completion of Topcall International AG and Neurascript Limited acquisitions

--US subsidiary Kofax signed an agreement with Adobe to integrate Adobe(R) LiveCycle(TM) Barcoded Forms into Ascent Capture

--Global leading market position maintained in revenue, licenses and installations (70,000+ Ascent software licenses shipped, 54,000+ installations for VRS)

--Revenue mix continuing to shift towards higher margin own products and services

Commenting, Arnold von Bueren, Chief Executive Officer of DICOM Group said:

"DICOM Group successfully completed the acquisitions of Topcall and Neurascript in the second quarter. The acquisition of Topcall positions DICOM Group in a new emerging growth sector, the Business Process Automation (BPA) market - one of the fastest growing segments of IT according to IDC, the global market intelligence firm.

Topcall's Unified Communication solutions are a natural complement to our Information Capture product offerings, our existing channel sales strategy, and our worldwide network of partners and customers. It opens new markets and new channel opportunities and broadens DICOM Group's product and technology portfolio. DICOM Group has consolidated Topcall's results for the month of December 2004 which is traditionally Topcall's strongest trading month in the year."

Regarding Prospects, Otto Schmid, Chairman of DICOM Group said:

"The Group is well positioned as the global industry leader in the Information Capture market. The balance sheet is strong and the Group continues to be highly cash generative. Our continuing investment in technology, our well-known and industry leading products, our customer base and our channel relationships are key for further enhancement of our market leadership in Information Capture. The US Dollar remains weak, reducing the sterling value of our US operating profits. However, current trading and good growth prospects enable us to view the Group's outlook for the full year with optimism."

About DICOM Group plc

DICOM Group plc ("DICOM Group", London Stock Exchange: DCM) is the global leader in Information Capture. Its leading edge capture and communication technologies and solutions enable Business Process Automation by managing the transformation and exchange of business-critical information (residing in various formats such as paper, fax, electronic documents, e.mail, SMS) among people, applications and devices. The company's centres for product development and marketing include Kofax, the world's leading provider of Information Capture solutions, and Topcall, a worldwide provider of Unified Communication technology. Through a global network of more than 1,200 authorised partners and its own sales and service organisations in Europe, the USA, Asia and Australia, DICOM Group help blue-chip enterprises in more than 60 countries to reduce cost, increase efficiency and minimize risk in their critical business processes.

The Group's Samsung General Agency (SGA) Division focuses on multimedia visualisation products for the IT, POI and Entertainment market in Switzerland. It operates as sole agency of Samsung's high performance flat screen display.