Acquisition of Insight Technologies brings additional technologies (15/1/02)



London, 15 January 2002 - Smartlogik Group plc (LSE: SLK; NASDAQ: SLGK), the
knowledge products company ("Smartlogik" or "the Company"), announces the
acquisition of the assets of Insight Technologies Ltd ("Insight"), a privately
owned developer of software tools for knowledge capture and retrieval from RSM
Robson Rhodes, acting as administrator for Insight.

Smartlogik will acquire the assets of Insight for a total consideration of
(Pounds)250,000 cash plus warrants over five million ordinary shares of
Smartlogik Group plc. The warrants are exercisable at any time after 14 January
2003 at a cost of 2.75p per share. At any time after that date, Smartlogik may
serve notice on the administrator of a specific 30 day period during which the
warrants must be exercised, failing which they would lapse.

As a result of the transaction, Smartlogik plc will acquire the intellectual
property rights of Insight Technologies as well as certain assets and third
party agreements. A total of ten employees, including Insight's Managing
Director, David Phillips who will join the Company as Chief Technology Officer
and as a member of the Executive Committee, will transfer from Insight
Technologies to Smartlogik, with associated liabilities of approximately
(Pounds)50,000.

The Board is conscious of the need to exercise close control over the Company's
cash resources. As a result of the benefits to be derived from the Insight
technologies, and the cost savings within the existing Smartlogik business that
the acquisition will allow, the Board expects the effect of the acquisition to
be cash neutral within the first twelve months. The Board further believes that
the acquisition adds significantly to the long-term capital value of the
Company. As at 31 December 2001, the Company had cash balances of approximately
(Pounds)4 million.

The Board believes that the acquisition will significantly strengthen and
broaden the company's knowledge product portfolio and greatly enhance its
competitive position. It is directly in line with the Company's strategy of
broadening the product range to deliver a more complete offering of knowledge
products, either through internal development or through acquisition.

Founded in 1995, Insight Technologies Ltd was based in Farnham, Surrey. In 1998,
it was appointed as Autonomy's first OEM in the UK.

Smartlogik's current product offering is centred around the core knowledge
product tools of world-class search and categorisation. The Insight tools will
add the additional capabilities of web spidering, security, summarisation,
profiling, expert recognition, personal agents, and knowledge asset management.
The Directors believe that the result will be a knowledge product capability of
exceptional breadth.

Importantly, the Insight technologies will allow Smartlogik's products to be
overlaid, as an additional level of functionality, on any legacy knowledge
products being used by an organisation. The acquisition therefore opens up a
considerably wider market into which Smartlogik is now able to sell.

Stephen Hill, Chief Executive of Smartlogik Group plc, said:

"Through the acquisition of the Insight technologies, our offering to the market
takes a quantum leap forward, with the addition of a series of complementary
technologies to our existing world-class products.

"The deal is in line with our buy-or-build strategy, which is geared towards
finding the most efficient and cost-effective route to establishing a position
of product and technology leadership. We have achieved in one step what would
have taken eighteen months, and considerable development costs, to create in-
house."


David Phillips has been in the knowledge management and document management
industries since 1982. He founded Insight in 1995, and has been responsible for
developing the business and product strategies and architecting the product
range. He is also a co-founder and director of Eteach.com, the UK's leading web-
based recruitment portal for education.

David Phillips commented: "We are very enthusiastic about this move. Having
acted as an OEM for Smartlogik's competitors in the past, we have long been
interested in their position in the market. We are firmly of the view that
Smartlogik's offering, and their professional approach to the effective
development of channels to market, are of the highest quality."

- - Ends -

For further information, please contact:

Smartlogik Group plc
Stephen Hill, Chief Executive Officer

Elizabeth Brittain, Head of Marketing
020 7930 6900

Hogarth Partnership (for Smartlogik Group plc)
John Olsen / Tom Leatherbarrow
020 7357 9477