Agreement with Flintshire County Council

PROACTIS Holdings PLC

Agreement with Flintshire County Council

PROACTIS Holdings PLC ("PROACTIS", the "Group" or the "Company"), the global specialist Spend Control and eProcurement solution provider, is pleased to announce that Flintshire County Council ("FCC") has selected the PROACTIS Supplier Network to streamline electronic communications across its supply chain and offer an accelerated payment facility.

FCC and PROACTIS (together, the "Parties") have entered into a series of agreements that will extend the current contracted relationship for the provision of PROACTIS' software suite for a further five years to March 2021 and will also to utilise PROACTIS' Supplier Network technology to:

- Automate the processes of supplier engagement and record management through a self-service portal;

- Enable all suppliers to transact electronically with a full range of electronic invoice methods for all suppliers to adopt, increasing FCC's and the supplier's own efficiency by streamlining invoice handling;

- Present online transaction status visibility throughout the process to efficiently involve suppliers on a self-service basis to streamline communication; and

- Offer, subject to contract and certain internal consents, a flexible Accelerated Payment Facility which enables suppliers, on an invoice by invoice basis, to support their own economic situation with fast access to an early payment.

FCC has over 4,000 suppliers and has annual bought in spend of approximately £130 million.

Leader of Flintshire County Council and Cabinet Member of Finance, Aaron Shotton, said:

"The existing PROACTIS arrangement has already delivered tangible savings for the FCC. We are now adopting the PROACTIS Supplier Network which we hope will provide a wide range of electronic connectivity options to streamline our supplier relationships. We look forward to seeing the potential benefits and passing those benefits onto our suppliers as well as the opportunities to accelerate payment and expand sales with other customers."

Rod Jones, Chief Executive at PROACTIS, commented:

"This agreement further endorses the Group's supplier networking strategy. FCC is a long standing and valued client with a forward thinking attitude to the use of technology to improve the efficiency of its supplier interaction. I am delighted that FCC has re-committed to PROACTIS' technology for a further five years and is deploying the PROACTIS Supplier Network for further strategic benefit. The PROACTIS Supplier Network will provide a frictionless method of communication that enables FCC and its suppliers to streamline business processes, improve information quality, reduce administrative costs and provide new commercial opportunities."

End

For further information, please contact:

Notes to Editors:

PROACTIS creates, sells and maintains specialist software which enables organisations to streamline, control and monitor all internal and external expenditure, other than payroll. PROACTIS' solutions are used in over 800 organisations around the world from the commercial, public and not-for-profit sectors. It is the largest independent eProcurement solution provider to the UK Public Sector.

PROACTIS is head quartered in Wetherby, West Yorkshire. It develops its own software using an in-house team of developers and sells through both direct and indirect channels via a number of Accredited Channel Partners.

PROACTIS floated on the AIM market of the London Stock Exchange in June 2006.