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Acquisition of Idiom for $22m (?11m)

Strengthens SDL’s position as a leading provider of Global Information Management solutions

SDL plc

Monday, 11 February, 2008

Maidenhead, UK – (11 February, 2008) SDL plc (“SDL”), a leading provider of Global Information Management (GIM) solutions, announced today that it has acquired Idiom Technologies Inc (“Idiom”), one of the leading providers of “Software as a Service” translation management systems.

SDL has acquired Idiom for a consideration of $21.7m (£11.1m*) plus the assumption of debt and working capital of $4.9m (£2.5m*). The transaction will see Mike Iacobucci continue to serve as CEO of Idiom, reporting to Mark Lancaster, Chairman and CEO of SDL.

Idiom Technologies was founded in January 1998 with a mission to offer large global enterprise class software to manage the complex translation process. Idiom introduced WorldServer™ later that year. Today, WorldServer is a market leading translation management system which is used by over 60 leading global companies worldwide. Idiom is based in Boston, Massachusetts and employs approximately 50 staff, primarily in the United States.

Idiom’s audited revenues for the year ended 31 December 2005 were $7.9m (2006 unaudited- $10.0m), generating an audited loss before taxation of $5.9m (2006 unaudited loss - $5.3m). The audited gross assets of the business at 31 December 2005 were $5.4m (2006 unaudited - $5.2m). The Directors expect Idiom to be break-even at the operating level in the first year of SDL’s ownership and to contribute positively thereafter. The acquisition is being financed in part by the drawdown of £9.5m from a new £20m revolving credit facility SDL has recently signed, and in part from SDL’s own cash resources.

SDL’s acquisition of Idiom will
•Enhance SDL’s GIM technology offering
•Add a number of blue chip customers to SDL’s customer base
•Combine SDL’s and Idioms technology solutions to provide better efficiencies of scales and shared intellectual property
•Provide a smoother solution for managing the translation supply chain
•Increase SDL’s consultancy, sales and development expertise
•Further strengthen SDL’s leadership position as a leading provider of Global Information Management solutions

In today’s market place, global companies need to manage ever increasing volumes of multilingual content to support their global markets. Existing Content Management Systems (CMS) do not provide the required functionality to manage the translation supply chain and centralized repository for managing multilingual content across a company’s enterprise.

Mark Lancaster, Chairman and Chief Executive of SDL, commented,
“In today’s competitive landscape, global trade is an imperative that companies should not ignore. SDL and Idiom both provide solutions that help companies manage global information. We feel that the market has reached a stage where Global Information Management is now acknowledged as a key ingredient for any large global company that manages global content across their multilingual, multicultural customer base. We feel that we can best address this expanding need by combining the resources of SDL and Idiom to provide a single solution with compatibility across the supply chain, now and in the future. The acquisition of Idiom will complement SDL’s existing solutions and will provide customers with enhanced applications, backed by the global presence and stability."

Mike Iacobucci, CEO of Idiom, said,
“We are delighted with today’s announcement. Idiom has established itself as an important player in the globalization market. SDL and Idiom have invested significant resources in the development of the Global Information Management (GIM) market. We believe that this market is at a turning point and expect to see substantial growth over the next couple of years. Being part of the SDL group will allow SDL and Idiom to provide solutions to satisfy this market globally. Together we can create and deliver complementary technology and services that capitalize on this growing market momentum.”

For more information visit www.sdl.com/idiom

* Exchange rate: £1: $1.95

About SDL
SDL is the leader in Global Information Management (GIM) solutions that empower organizations to accelerate the delivery of high-quality multilingual content to global markets. Its enterprise software and services integrate with existing business systems to manage the delivery of global information from authoring to publication and throughout the distributed translation supply chain.

Global industry leaders rely on SDL to provide enterprise software or hosted services for their GIM processes, including ABN-Amro, Best Western, Bosch, Canon, Chrysler, CNH, Hewlett-Packard, Microsoft, Philips, SAP, Sony, SUN Microsystems and Virgin Atlantic.

SDL has implemented more than 400 enterprise GIM solutions, has deployed over 150,000 software licenses across the GIM ecosystem and provides access to on-demand translation portals for 10 million customers per month. Over 1,000 service professionals deliver consulting, implementation and language services through its global infrastructure of more than 50 offices in 30 countries. For more information, visit www.sdl.com

All trademarks are the property of their respective owners.

For more information on SDL, please contact:

Paul Hampton (SDL)
+44(0)1628 416331
[email protected]

Helen Cleaves (Lewis)
+44 (0) 20 7802 2626
[email protected]