Gladstone Education update November 2008

10th November 2008 -

Gladstone plc (AIM:GLD), a leading provider of software solutions and services to the Education and Health & Leisure markets, is pleased to provide an update on Gladstone Education, its educational software division. Since the launch of this division in 2006, Gladstone Education announces that it is now well positioned to benefit from the rapid growth within the UK Public and Private Sector Education Facilities Management Solutions ("EFMS") market.

In line with the Group's long term growth plans, Gladstone has identified the UK Public and Private Sector Education EFMS market as a sector into which the Group could quickly deploy its core technology solutions and service capabilities to maintain the Group's long-term growth prospects. To date, the Group has been successful in entering this new market, building on its existing established client relationships, a deep knowledge of the market and solid expertise gained in managing mission-critical enterprise membership and facilities management solutions.

The UK Government's announcement with regard to the launch of the 15 year £45 billion capital investment 'Building Schools for the Future' ("BSF") programme, has re-enforced Gladstone's business foresight and strategic decision to move into this area. This initiative represents an unprecedented level of Government investment to create world-class educational facilities benefiting from the application of the latest technologies and solutions. The BSF program is the largest single Government investment in years with a resolute commitment to rebuild or refurbish over 3,500 secondary schools throughout the UK.

BSF was endorsed in 2006 by the Prime Minister's additional announcement relating to the £5 billion Academy Build Programme, stating plans to double the number of highly-acclaimed new builds from 200 to 400. This programme has been focused upon raising the achievement levels in deprived areas by replacing poorly performing schools or by providing new schools where they are needed. The key to the successful development of these Academies has been the emphasis on maximising the benefits of state-of-the-art technology, not just as part of the classroom curriculum, but also in efficiently managing the site facilities and the environment for individual students to enhance the overall learning experience.

In 2008 the Government also announced the launch of the £7 billion Primary Capital Programme ("PCP") focused on the re-development of at least half of all primary school buildings by 2022 / 23. The aim is to create primary schools that are equipped for 21st century teaching and learning, and are at the heart of their communities with children's services in reach of every family.

All three of these strategic Government initiatives have presented Gladstone Education with major long-term and sustainable business opportunities through-out the UK; opportunities that are not subject to the volatile nature of the wider economy. With the expansion of public sector investment in education, private sector interest is also increasing rapidly with the desire to provide exceptional learning environments for all students.

There are real opportunities for Gladstone Education to deploy innovative technology and to demonstrate how it can impact on the student's quality of life and educational standards within these new community based facilities.

Gladstone Education has already deployed its proven technological solutions including electronic registration, cashless catering and integration of access control systems in numerous schools throughout the UK. Gladstone has enabled one of the Government's key aims of 'Interoperatability' to become a reality, thereby enabling fully integrated solutions to work seamlessly on the latest technology platforms - combining 'smart technology' to provide truly 'smart solutions'. This will have a tangible and positive impact on the management of all schools in the future.

Furthermore, significant growth potential is evident given the current appetite for IT systems and services not just within primary, secondary and sixth form schools; but in Further Education and Higher Education establishments as well. Concerns for the health of our children with the introduction of healthy eating initiatives, regular exercise and a clear focus on improving attendance and tackling truancy, through the commitment made by the UK Government further underpin these growth opportunities.

The established trading division of Gladstone plc, Gladstone Education Ltd, has emerged as a credible solution provider within the EFMS market; already partnering with a number of leading ICT, Catering Service and Building and Construction Contractors including Northgate, Skanska, Civica, European Electronique and XMA.

The successful suppliers and partnerships delivering solutions to these strategic Educational programmes will be those who are able to demonstrate an understanding of the broader requirements of interoperability, high-quality and sustainable project delivery to all key stakeholders including school management, students, parents and local education authorities respectively.

Dr. Said Ziai, Chairman and CEO of Gladstone, commented: "The key to success within this sector has been to establish Gladstone's credibility by collaborating with large contractors and other ICT systems providers to deliver fully integrated Educational Facilities Management Solutions.

"Gladstone's original goal of becoming the 'solution provider of choice' to these partners and the broader education market space has become a reality. As the successful early-adopter schools and colleges go live, these sites have, in effect become the blueprint not just for the public sector, but for any Education establishments who wish to adopt and deploy our fully integrated, leading-edge technology solutions."

Press contact

Peter K. Doyle, Head of Marketing, Gladstone plc
T: 01491 202825
M: 07977 152009
pdoyle@gladstoneplc.com