RECOGNITION SYSTEMS ANNOUNCES DEAL WITH CENTRICA, UPDATE ON BERTELSMANN PROJECTAND PERIODIC TRADING STATEMENT

Recognition Systems Group plc, the Birmingham based developer and vendor of integrated customer relationship management ("CRM") software and systems, today announced that it has recently received orders for Protagona (Recognition's flagship electronic Customer Relationship Management ("eCRM") software) to several new customers in the UK, Europe and the US.

In the UK, Protagona has been selected as the eCRM software solution at Centrica. Centrica aims to be the first choice supplier of energy and services to homes and businesses in Great Britain. The group trades as British Gas in England and Wales, Scottish Gas in Scotland, the Automobile Association (the "AA") and Goldfish (the credit card business). Centrica acquired the AA in July 1999. The AA is the UK's leading motoring organisation, a leading UK independent car and home insurance intermediary and has an established financial services business.

The Centrica contract was won in conjunction with Logica, a leading international computer consultancy and systems integration company. Centrica is in the process of transforming itself from a utility to a broader customer services group and regards the successful deployment of CRM as critical to its strategy. Protagona will be implemented within Centrica's British Gas, the AA and Goldfish businesses.

Protagona has also been selected by a "top 100" quoted company (UK FTSE 100) which is in the process of implementing an Internet based business solution to manage its e-customers.

Confidentiality undertakings prevent Recognition from currently naming the UK e-commerce customer, but this contract will be implemented in conjunction with one of Recognition's previously announced alliance partners.

In Europe and the US, Recognition is delighted to announce the successful completion of the initial trial phase of the Bertelsmann project. The existence of this trial project has been referred to in previous announcements; Recognition is today confirming that Protagona has now been unconditionally selected and is being implemented by Bertelsmann as its CRM solution in conjunction with SAP and syskoplan.

These are the principal new customers obtained by Recognition in the first quarter of the financial year ending 30 September 2000 and show the continued penetration of Protagona within the CRM marketplace on a global basis. Recognition estimates that new customer business generated in the first quarter will be worth around 2.5 million over the next twelve months, with the majority being recognised in the current financial year.
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NOTES TO EDITORS:
Recognition Systems Group, plc, headquartered in Birmingham, England, with U.S. headquarters in Chicago, is quoted on the full list of the London Stock Exchange. The company's flagship product, Protagona, is the only software system that enables marketers to implement effective multi-channel marketing campaigns. The company's Web site is located at www.protagona.com

FULL PRESS RELEASE ON CENTRICA COMING SOON...

FROM:   PRESS ENQUIRIES TO:
Clare Hunter   Catherine Dhanjal or Marcus Priaulx
Recognition Systems Group plc   Portfolio Communications Ltd
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DATE: 19 January 2000   REF: 00-10