Morson announces the acquisition of the business of Bluetec for a cash consideration of £2m (the "acquisition"). the acquisition represents the first step in the company's strategy to supplement strong organic growth with selective acquisitions and strategic alliances. Based in London, Bluetec is part of Blue group International Limited, employing 41 staff. It specialises in the provision of highly skilled professional personnel predominantly to the building and construction sectors and to some extent the telecoms sector.

Personnel are placed on either temporary contracts or on a permanent basis. Whilst Bluetec's business is largely focused on the UK it has also developed its operations to supply temporary contractors to high growth emerging markets overseas. Bluetec has developed a database of over 30,000 contractors.

The acquisition is important as it strengthens Morson's London presence. Currently, the London operation supplies technical personnel with a focus on the rail sector. The acquisition of Bluetec enables Morson to expand that business into the building and construction services sector with the support of an experienced and proven recruitment team. As a result the directors believe that Morson will have a strong London base ready to service the increasing demand which they expect to see in the coming years ahead of the 2012 Olympics.

The acquisition also allows Morson to enhance its permanent recruitment offering. However, morson's main focus remains the provision of long term contract staff.

In the year ended the 30th June 2006 Bluetec division reported a turnover of approximately £9.4m and net fee income of some £2.7m

The Directors believe that the acquisition will be earnings enhancing in its first full year of ownership.

Commenting on the acquisition Ged Mason, Chief Executive Officer of Morson Group, said

"We are delighted to be able to announce the acquisition of Bluetec our first acquisition since our IPO in March. I believe that Bluetec has an excellent strategic fit with Morson's operations, providing permanent and temporary recruitment expertise in core growth sectors whilst strengthening our London offering and expanding new business and new client opportunities."