London – Reuters, the global information, news and technology group, has acquired Diagram fip SA, a major European provider of financial software solutions for the capital markets, for £42.6 million in cash (Euro 66.9 million) from Caravelle, a French holding company. Based in Paris, Diagram had audited revenues of £17.4 million (Euro 27.4 million) in 2000 and employs 230 staff.

Diagram supplies back-office solutions, including software packages, and value-added services such as consulting, training and integration for banks, brokers, fund and asset managers and insurance companies. It also offers integrated corporate treasury systems, including electronic banking solutions, for the cash and risk management departments of corporations and large banks. Diagram currently operates in France and Benelux but is developing businesses in Italy and Japan.

Diagram's products will be further integrated with Reuters trade and risk management solutions, using Active-Enterprise technology supplied by TIBCO Software Inc. Already Reuters and Diagram have provided integrated solutions using Kondor+, Reuters flagship risk product for the front offices of financial institutions. Integrated solutions meet the strong demand for Straight Through Processing and Operational Risk Management in the capital markets which link all stages of a transaction from pre-trade analytics and deal capture to clearing, settlement and accounting.

Diagram's development and product management staff will be integrated into Effix, a Reuters development centre for front and middle-office solutions based in Paris. The management of Diagram will remain with the company and play a full part in the integration. Reuters will distribute Diagram's products worldwide.

Pierre-Andre Martel, President of Diagram, commented: "Diagram is a solid company facing the challenges of globalisation. Reuters came to us with an outstanding opportunity for Diagram to become a full member of a powerful worldwide player offering integrated front-to-back office solutions. With such complementary products, similar culture and professionalism, the integration into Reuters seems a natural step. There could not be a better project for our employees and our customers."

Philip Green, Chief Executive, Reuters Financial, commented: "This example of our strategy to ‘buy not build' will immediately strengthen Reuters position in the global software solutions market and enable us to offer our customers a complete integrated front-to-back office solution. At the same time it will strengthen our presence in the buy-side and corporate treasury markets. Diagram and Reuters already enjoy a proven working relationship and we aim further to exploit these synergies."

End

Contact:

Geoff Wicks
Director, Corporate Relations
Tel: +44 (0) 20 7542 8666
geoff.wicks@reuters.com

Peter V Thomas
Director, Media Relations
Tel: +44 (0) 20 7542 4890
peter.v.thomas@reuters.com

Note to editors:

Reuters (www.about.reuters.com) premier position as a global information, news and technology group is founded on its reputation for speed, accuracy, integrity and impartiality combined with continuous technological innovation. Reuters strength is based on its unique ability to offer customers around the world a combination of content, technology and connectivity. Reuters makes extensive use of internet technologies for the widest distribution of information and news. Around 73 million unique visitors per month access Reuters content on some 1,400 Internet websites. Reuters is the world's largest international text and television news agency with 2,157 journalists, photographers and camera operators in 190 bureaux, serving 151 countries. In 2000 the Group had revenues of £3.59 billion and on 31 December 2000, the Group employed 18,082 staff in 204 cities in 100 countries.

This news release may be deemed to include forward-looking statements relating to Reuters within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. Certain important factors that could cause actual results to differ materially from those disclosed in such forward-looking statements are described in Reuters Preliminary Statement for the year ended 31 December 2000 under the heading ‘Risk Factors'. Copies of the Preliminary Statement are available on request from Reuters Group PLC, 85 Fleet Street, London EC4P 4AJ.

Reuters and the dotted and sphere logos are the house trademarks of Reuters Limited.

Active Enterprise is the trademark or registered trademark of TIBCO Software Inc.

Diagram is a major European supplier of software solutions for capital markets. Founded 14 years ago, Diagram supplies back and middle office solutions for banks, insurance companies, asset managers, mutual funds and corporate treasuries. These solutions include software packages and value-added services such as consulting, training and integration. Diagram has 400 installed sites mostly in France and Benelux. Its major products are: Diagram Capital Markets, an integrated back and middle office solution for banks and brokerage firms; Diagram Asset Management, a solution dedicated to professional fund and asset managers; CashFlow, an integrated corporate treasury system; and Diagram EDI, an electronic banking software.

Caravelle is a holding company that specialises in companies with significant positions in niche markets, mostly in the services and high technology areas. It provides the necessary human and financial resources to restructure and develop them with an emphasis on growth and profitability. Caravelle has consolidated revenues of 40 million Euros.

TIBCO Software Inc 's real-time infrastructure software enables businesses to integrate enterprise applications, interact with other businesses in B2B commerce, and efficiently deliver personalised information through enterprise portals. TIBCO ActiveEnterprise is the real-time infrastructure's core product suite.