PlanGraphics acquires U.K.-based Xmarc Ltd.

FRANKFORT, Ky., May 5, 2004—PlanGraphics Inc. (Pink Sheets: PGRA) announced today that it has acquired all the outstanding shares of London-based Xmarc Ltd. The seller is Glendower Opportunity Partners II, incorporated in the Cayman Islands.

Xmarc Ltd. has been the key value-added reseller of the Xmarc products in Europe. Its principal activities are the marketing, reselling and distribution of software tools, as well as providing software maintenance. It was previously know as Xmarc Europe Ltd.

"The acquisition of Xmarc Ltd. aids in our ability to directly support the European customer base through the improvement of source code, traditional customer support and the development of custom solutions using a wide range of third-party tools," noted PlanGraphics' president, John Antenucci. "In combination with the formation of Xmarc Services a year ago, PlanGraphics now has both a product and service facing presence in Europe."

The transaction, which closed on April 30, 2004, has an effective date of March 31, 2004. As a result, PlanGraphics will assume all the assets and liabilities of Xmarc Ltd. as of that date. Total assets of Xmarc are the equivalent of approximately US$226,155, less than 5% of PlanGraphics' total assets.

PlanGraphics, founded in 1979, is a full life-cycle systems integration and implementation firm providing a broad range of services in the design and implementation of information technology in the public and commercial sectors. PlanGraphics' experience with spatial information systems and e-services capabilities provides a critical discriminator among other IT consulting and integration firms. PlanGraphics has headquarters in Frankfort, Kentucky, and regional offices in Maryland, Colorado and New York. On the Web: www.plangraphics.com.

####

CONTACT: Fred Beisser, Senior Vice President—Finance; Tel: (720) 851-0716 or email: FBeisser@PlanGraphics.com

Copyright 2004 PlanGraphics, Inc.