RNS Number:9284T
Hot Group PLC
07 January 2004


7 January 2004

                  hot group plc ("hot group" or the "Company")

           Acquisition of The Graduate Group Limited ("The Graduate")

On 6 January 2004 hot group, the AIM listed recruitment specialist, completed
the acquisition of the entire issued share capital of The Graduate, a business
specialising in graduate recruitment in the UK and Europe ("Acquisition").

The aggregate consideration payable in respect of the Acquisition comprises:

   * Initial consideration of #325,000, to be satisfied as to #125,000 in
     cash and #200,000, to be satisfied by the issue of 1,085,776 new ordinary
     shares of 10p each in hot group ("New Ordinary Shares");
   * Deferred consideration of up to #75,000, to be satisfied in cash, which
     will be subject to adjustment based on the net assets of The Graduate on
     completion of the Acquisition; and
   * Earn-out consideration which will become payable on the achievement by
     The Graduate of certain profit targets during the 12 month period
     immediately following completion of the Acquisition.

Any earn-out consideration which becomes payable is expected to be satisfied in
cash.

For the year ended 30 November 2002, The Graduate recorded turnover of #205,807,
a loss before taxation of #89,874 and as at 30 November 2002 had net liabilities
of #73,241.

The Acquisition is in line with hot group's strategy of growing its business by
acquiring selective online and traditional recruitment businesses, and
complements hot group's recruitment site for young people, hotrecruit.com, and
further strengthens its position as a leading online recruitment service for
young jobseekers.

hot group Chairman and Chief Executive Tony Reeves said: "The Graduate's strong
client base and reputation complements our existing student business and takes
us into a new market area. Synergies with hotrecruit.com will enable us to
provide a more rounded offering and will further strengthen our online
division's employer's direct product. The Graduate uses a unique and highly
effective network of student representatives on the campuses of top universities
which we will utilise to market hotrecruit.com. It is our ultimate aim to build
hotrecruit.com into the UK's leading young person's jobsite, targeting school
leavers, seasonal workers, students, graduates and first and second time
jobseekers."

Application will be made to the London Stock Exchange for admission of the New
Ordinary Shares to trading on AIM. It is expected that dealings in the New
Ordinary Shares will commence on 13 January 2004.

Enquiries:

Tony Reeves
Chairman and Chief Executive Officer
Tel: (0870) 202 0121

Steve Wright
Finance Director
Tel: (0870) 202 0121

Simon Raggett /Angela Peace
Strand Partners Limited
Tel: 020 7409 3494

Hugo de Salis/Isabel Crossley
St Brides Media & Finance Ltd
Tel: 020 7242 4477




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
ACQILFFTLLIRIIS