London – Reuters, the global information and news group, has agreed to sell its minority holdings in the Safetynet Group to Guardian iT plc for a total consideration of £41 million in cash. The transaction, on completion, will realise in the order of £37 million of pre-tax profit in the second half of the year.

Safetynet is one of the leading business continuity and disaster recovery suppliers in the UK. Its largest business activity is in the provision of disaster recovery services for users of IBM mid-range computers together with workplace and dealer room recovery facilities. Safetynet also provides high availability and facility management services together with e-commerce support and business continuity consultancy.

Reuters has sold its investments as Safetynet's activities no longer form part of the Group's core business. Reuters first acquired an interest in Safetynet in 1993.

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Contact:

Peter.V.Thomas
Director, Media Relations
Tel: 020 7542 4890
peter.v.thomas@reuters.com

Adrian Duffield
Manager, Group Corporate Relations
Tel: 020 7542 4728
adrian.duffield@reuters.com

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 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 1999 Annual Report to Shareholders under the heading "Operating and Financial Review – Cautionary Statements". Copies of the Annual Report are available on request from Reuters Group PLC, 85 Fleet Street, London EC4P 4AJ.

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