Morson, the UK's leading provider of Technical Contract Staffing, is pleased to announce the acquisition of Commissioning and Technical Services Limited (CTS) from CTS group (Holdings) limited for a cash consideration of up to £1.35 million dependant on the net assets at completion (the "acquisition").

Tthe acquisition represents a further step in the company's strategy to supplement strong organic growth with selective acquisitions, strategic alliances and consolidation of the sector.

Based in Blackpool, Altrincham, Derby and Croydon, CTS engages approximately 300 contractors. It specialises in the provision of highly skilled professional personnel predominantly to the Oil & Gas, Aerospace & General Engineering sectors. personnel are placed both on temporary contracts and on a permanent basis from a database of over 70,000 contractors.

The acquisition will strengthen Morson's developing Oil and Gas division and enhance its operations in the Aerospace and general engineering sector by adding an experienced and proven recruitment team and senior management resource. The directors believe that the acquisition will further consolidate Morson's strong market position in the North and provide additional resource to service the increasing demand across the uk.

Following the publication of its results for the financial year ended 31 July 2006, CTS hived out its non-recruitment activities into separate entities. During the year ended 31 July 2006, the operations of CTS acquired by Morson achieved turnover of some £15.0 million and net fee income of circa £1.1 million. 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 CTS, our fourth acquisition since our IPO in March last year. I believe that the acquisition has an excellent strategic fit providing predominantly temporary recruitment expertise in our core sectors whilst strengthening our geographic coverage and expanding new business and new client opportunities particularly within Oil & Gas."