Futuremedia to provide tax-efficient package to compass group

Futuremedia plc, a European e-learning content and services provider announced an agreement with one of Britainís largest employers, Compass Group plc (London Stock Exchange:CPG), whereby Futuremedia will provide home computers, bicycles and childcare vouchers to all eligible Compass employees under the governmentís Home Computing Initiative (HCI) and other tax breaks.

The Futuremedia package, You Choose(tm), gives employees the opportunity to lease an Internet-ready, fully installed home computer at below high street prices, typically a saving of 40%. Additional benefits available in the Compass Group package include tax-efficient bicycles and childcare vouchers.

From April 6th, new UK tax legislation means that employees can make childcare payments of up to 50 per week of pre-tax income. The bicycles are provided through the governmentís Green Travel Plan, which encourages the use of bicycles for commuting. Compass employees will also have access to a wide range of learning software packages, email and multimedia entertainment, supported by a single helpline for all three benefits.

In summary, by joining You Choose(tm), eligible employees can lease computers, and obtain bicycles and childcare vouchers with pre-tax salary.

Leonard M. Fertig, CEO of Futuremedia said, With nearly 110,000 employees, Compass Group is one of the largest employers in the UK. Through You Choose(tm), we believe that Futuremedia is the only company in the UK providing a full service package with excellent tax advantages to employers and employees, for home computers, bicycles and childcare vouchers. This is a major step forward in supporting the UK governmentís aim to have a better educated, fitter workforce.

June Woodhouse, Benefits Director at Compass Group UK and Ireland, said, You Choose(tm) allows employees to choose a package of benefits they can afford, and not overstretch their finances. The presentation of the package as a single benefit will be easy for our employees to understand, itís an excellent plan and further extends the benefits the Compass Group offers to its workforce.

Mr. Fertig continued: Futuremedia is at the forefront in the delivery of e-learning content and tax-efficient benefit programs to employees. Our proven track record combined with the investments we have made in our infrastructure gives us a competitive advantage in serving major corporations and institutions. Our recently issued financial guidance for fiscal 2005 includes our expectations regarding the near-term impact of our program with Compass Group. I anticipate updating our shareholders on the details of the program on our fiscal third quarter conference call in late March.