About Prime People

Background

Prime People Plc has been trading since 1986 and in June 2004 moved to AiM having been on the main London market since May 1995.

On 9 December 2005 the Board of Prime People Plc announced that it had conditionally agreed to a reverse takeover by Macdonald & Company Group (Macdonald), an independent professional recruitment consultancy focused on the commercial property sector. The acquisition was completed on 3 January 2006 and dealing on AiM in the enlarged Share Capital commenced on 4 January 2006.

The Prime People Plc group's principal business is now Macdonald.

Strategy

Macdonald plans to further build its share of UK and International real estate, infrastructure and commercial property recruitment markets organically and by acquisition of businesses and/or teams to:

• Grow existing areas of specialism where demand from clients suggest this is appropriate;
• Further develop its new businesses in property related areas of architecture, social housing/residential development and engineering;
• Build on the opportunities provided by its international offices in Dubai, Hong Kong, Sydney and Johannesburg; and
• Explore further opportunities for international expansion.

Where Macdonald is able to identify acquisition targets of an appropriate size and operational fit it aims to pursue these, particularly those acquisitions that may provide access to additional areas of specialism within the property recruitment sector.

Whilst the focus of Macdonald is on the property recruitment sector, the Board of Prime People believe that in due course it may be appropriate to apply the model to certain other sectors.