Logical Expands Presence in U.S. Systems Integration Market with Acquisition of AllTech Data Systems, Inc.

CHICAGO--(BUSINESS WIRE)--Oct. 19, 1999--

Purchase of top-rated Cisco Gold Partner furthers Logical's goal of

becoming a leading provider of network-based integration services

In a move to expand its presence in the U.S. systems integration market, Logical, a premier supplier of e-business information technology products and services, today announced that it has reached an agreement to purchase AllTech Data Systems, Inc., Bensenville, Illinois, a network system solution provider and a leading Cisco Gold partner.

Under the terms of the agreement, parent company Datatec Ltd., Johannesburg, South Africa, will acquire 64% of the issued share capital and an option for the balance of the share capital of AllTech for a purchase consideration of up to a maximum of $48 (US) million, with the final purchase price calculated on the basis of the company's future profitability. AllTech will ultimately consolidate under the global Logical brand, which also comprises network-based systems integration and e-business solution providers in the United Kingdom, France, Germany, Switzerland, South Africa, Australia and New Zealand.

Recently ranked number one in Cisco's 1999 Customer Satisfaction Survey, AllTech is a Cisco Gold Partner, CIP Certified, SISE and Professional Services Partner and the largest non-telecommunications regional Cisco VAR in the Midwest. AllTech's Cisco Gold Partner certification now results in Logical boasting Gold certification in the U.S., UK, Australia and New Zealand, with software development and e-business consulting operations also in South Africa, Switzerland, Australia and the UK.

"As Cisco becomes more involved in the MultiService arena, it became increasingly obvious that AllTech had to align itself with a global partner to meet the strategic needs of its customers," commented James Wilson, president and CEO of AllTech. "Logical's global approach to network services will give AllTech unsurpassed capabilities for its customers across the country and indeed, the world.

"During the negotiations, I was convinced that Datatec possessed a synergistic strategy and culture complimentary to AllTech's own," added Wilson. "The fit was so right, it seemed only logical. We are extremely pleased to join the Logical team and participate in realizing the shared vision of building advanced e-business solutions on solid network infrastructures. It's great news for both our customers and staff."

AllTech now joins a global Logical organization with more than 2500 employees located in 10 countries, spanning four continents. The acquisition further propels Logical across the U.S., expanding its North American operations to over 300 employees located in 32 offices nationwide. Company officials at Logical believe the acquisition provides AllTech with a greater opportunity to accelerate its growth and satisfy the demands of a growing customer base.

"Through a combination of strategic acquisition and organic growth, we have built Logical into a global organization with the ability to offer complete end-to-end business solutions encompassing everything from LAN/WAN infrastructures, to Web integration and e-business consultancy, applications development and managed network services. Logical is now one of a few global providers with the ability to deliver all the components needed for e-business solutions," said Rikke Helms, Logical's chief executive officer.

John McCartney, vice chairman of Datatec, commented "Our aim over the next year is to extend the geographic footprint of Logical and become a major player in global integration and e-business services markets. Our U.S. acquisitions have given us the critical mass and the ability to design, implement, manage and service enterprise-wide, mission critical networks. To these infrastructures, we can add the e-business consulting, e-business integration and applications development skills that are resident in other parts of the Logical group. You can expect to see us to make further acquisitions in the U.S. as we continue to invest in skills, and pioneer new networking and e-business opportunities."

AllTech's end-to-end solutions consist of a combination of technical consulting and hardware from the planning, implementation and maintenance stages of mission-critical, enterprise-wide networks. Network services comprise an important constituent of the revenue and include professional services (e.g. network consulting and application design), technical services (e.g. network installation, on-site network support and staff augmentation, project management and implementation) and maintenance services (including Managed Network Services offering 24x7 monitoring, fault, performance, configuration and security management, network administration and on-site priority response).

Logical provides complete networking solutions, e-business consulting service and Web-integration capabilities to large corporations around the world. "The networked information systems that enable e-business applications are fundamental to the very existence of modern business," added Helms. "We are a strong provider with the proven ability to deliver all the components needed for e-business systems."

About Logical

Logical is the global network integration and e-business services division of Datatec Limited, a global technology and services company with South African origins. Logical, headquartered in the UK, provides complete end-to-end solutions, including LAN/WAN infrastructures to desktops, servers and applications development, managed and outsourced network services, and Internet-based e-business solutions. Logical has established strategic partnerships with Cisco Systems, Hewlett-Packard, Baan, Oracle, Microsoft, Nortel Networks, IBM, and 3Com. For more information, visit www.logical.com.

About AllTech

Founded in 1994 and headquartered in Bensenville (Chicago), Illinois, AllTech Data Systems, Inc., provides complete network solutions to major corporate customers operating complex enterprise-wide networks. The company's strong customer base comprises mostly Fortune 1000 companies in the insurance, financial, manufacturing, services and health care sectors, including, Cooper Tire, Northern Trust Bank, Columbia Regional Hospital, Caterpillar and Advocate Health Care. In the last three years of operation, AllTech has experienced rapid growth. Revenues increased from $9.8 million in 1996 to $63 million in 1999 with projected 2000 revenue of $86 million. The company now employs in excess of 137 staff operating out of seven offices (Bensenville, Chicago, Bloomington, Springfield, Milwaukee, Indianapolis and Denver), with additional locations in the planning stage. For further information on AllTech, visit www.alltechdata.com

About Datatec Ltd.

Datatec is an international technology and services company focusing on corporate networking and associated market areas related to the rapid growth in adoption of computer networking and Internet technology. Datatec's business encompasses the provision of IT solutions and services, the worldwide distribution of advanced networking products and a range of value added solutions based around E-business and Internet technology. Datatec was listed on the Johannesburg Stock Exchange in 1994 and joined the All Share 40 Index in December 1998. The company employs more than 3,500 personnel worldwide and has revenues in excess of US$2B. More information about Datatec Ltd., is available via the Internet www.datatec-group.com