Contract Win with POS Malaysia

6 December 2012

Escher Group Holdings plc

("Escher", "Escher Group" or "the Group")

 Contract Win with POS Malaysia

Escher, a world leading provider of outsourced point-of-service software to the postal industry, announces that POS Malaysia has selected the Group to deliver its new postal retail system following a rigorous tender process. The contract is an integral part of POS Malaysia's 'Transformation Plan' of enhancing its services to Malaysia's 29 million citizens through its network.

Escher's Riposte software is an end-to-end solution for post offices that provides a single platform for the delivery of all services including retail, postal, payments, money transfer, banking and government services.

The contract is for the provision of the Riposte licensed software, customisation, data centre hardware and deployment of the solution across Malaysia's network of postal outlets. Escher expects the contribution made by this contract to have a material effect on the Group's revenues for the year ended 31 December 2012. The contract also makes provision for two years of maintenance.

Liam Church, Escher Group's CEO said: "Escher's vision is to build on its position as the leading provider of platforms for the global postal industry. This contract win with POS Malaysia extends our growing customer base in Asia, demonstrates the strength of our team in this important market and is an endorsement of our vision. We are delighted that POS Malaysia has chosen us to be a central part of their Transformation Plan."

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Notes to Editors

Escher is a world leading developer and provider of outsourced, point of service software for use in the postal industry worldwide. Its core software, RiposteEssential, enables post offices to expand upon their traditional offering, providing additional new services, reducing costs and increasing efficiency.  Riposte is a messaging middleware that enables applications operating on different computers to communicate with each other. The Riposte software manages data, monitors the system status and communicates across the network. Escher operates across two divisions - its Retail Software Division and its Message Based Communications Division.

The Retail Software Solution (RiposteEssential) serves the postal and courier markets. Transactions include mail and financial services and the system is integrated with utilities and financial services companies, banks and central and local governments.

Escher's Message Based Communications Division (RiposteTrEx) is based on a digital post office box model and is designed to provide a national digital infrastructure linking governments, businesses and citizens via a secure platform.