The Boards of Northgate plc and Redde plc ("Redde") announced that they have reached agreement on the terms of a recommended share-for-share merger of Northgate and Redde (the "Merger"). It is intended that the Merger will be implemented by means of a Court-sanctioned scheme of arrangement of Redde and the Redde Shareholders under Part 26 of the Companies Act, with the entire issued and to be issued share capital of Redde being acquired by Northgate. In addition, the Board of the Combined Group will include non-executive directors from Redde and Northgate.

Any executive or non-executive directors of Northgate or Redde not appointed to the Board of the Combined Group will step down from the Board of Northgate or the Board of Redde (as applicable) upon the Scheme becoming effective. Each of the Northgate and Redde directors stepping down from the Board of Northgate or the Board of Redde (as applicable) is fully supportive of the rationale for the Merger and of its terms and conditions. In conjunction with the proposed governance arrangements and board composition of the Combined Group, Northgate confirms that Kevin Bradshaw has stepped down, by agreement with the Board of Northgate, from his position as a director and CEO of the Company with immediate effect.

Avril Palmer-Baunack, currently non-executive chairman of Northgate, will become non-executive chairman of the Combined Group; Martin Ward, currently CEO of Redde, will become CEO of the Combined Group; and Philip Vincent, currently CFO of Northgate, will become CFO of the Combined Group.