Datatec Ltd. Acquires Bloomfield Computing Solutions; South African-based Technology Company Enters U.S. Market With Purchase of Leading Supplier of HP Enterprise Solutions.

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Jan. 25, 1999--Bloomfield Computing Solutions, Inc. (BCS), a leading, exclusive reseller of Hewlett-Packard Company enterprise solutions and professional services supplier, today announced it will be acquired by Datatec Ltd. Datatec Ltd. is South Africa's fastest growing technology company and that country's largest networking, software and Internet distribution and services group. The acquisition provides Datatec with an entry into the U.S. IT solutions market and provides BCS with capital and resources to expand the services it provides its customers.

The proposed acquisition is consistent with Datatec's mission to make its systems integration arm, Logical, a leading international brand in network-based systems integration and services. BCS will become "Logical BCS" and be part of Datatec's global Logical brand, which also includes network-based systems integration business in the United Kingdom (UK), France, South Africa and Australia. Under the terms of the agreement, Datatec will acquire the entire issued share capital of BCS for an initial consideration of US$30 million, plus further amounts up to a maximum of US$102 million, dependent on achievement of certain profit milestones.

"BCS has prided itself on providing value-added services to its customers. Becoming part of the Datatec organization will enable us to expand our offerings to both our local and multinational customers," said Paul Hodges, Bloomfield CEO and President. "This is an excellent opportunity for the company, our employees, partners and for our customers, enabling us to accelerate our growth and to improve on the already superior services we provide."

"In the last six months, Datatec has built critical mass in the UK and began developing operations in Europe. BCS provides an important entry in North America for Datatec to grow and develop its international network-based systems integration business," said Jens Montanana, Datatec's executive chairman. "As the largest exclusive channel partner for HP, BCS offers a broad range of enterprise solutions and systems integration services and will be a significant asset within the Logical group."

About Datatec Ltd.

Datatec is a leading Internet-focused networking technology and services company. Originating in South Africa, the group has quickly established business operations that spread across the globe. Datatec has consolidated its principal business areas around the following major international brands: "Westcon" (technology products); "Logical" (network integration and services); "Datasoft" (software development initiatives); and IT-IQ (training services). Datatec's principal focus is to exploit the opportunities provided by the exploding Internet/Intranet marketplace and as a result it has become a major Internet-oriented technology group, focusing on networking and related products and services.

Datatec was listed on the Johannesburg Stock Exchange in 1994 (symbol:DTC). Since that time, the company's valuation has climbed by more than 2000 percent and its CAGR in earnings has exceeded 100 percent per annum. The company employs more than 2000 personnel worldwide and has revenues in excess of US$1 billion.

About Bloomfield Computing Solutions

Bloomfield Computing Solutions, Inc. is a leading enterprise-wide systems integrator, specializing in HP hardware, software, services, and solution implementations. Designated as a "Best-In-Class" Channel Partner by HP and a Baan Solution Partner, BCS combines a focus on technology with core competencies in leading hardware, software, networking and storage technologies and professional support services. BCS is headquartered in Bloomfield Hills, Michigan and expanding nationally, with over 16 offices established across the U.S. More information about Bloomfield Computing Solutions, Inc. is available via the Internet at http://www.bcomp.com.