Trading Statement

CORSIE GROUP PLC                                

                           ("Corsie" or "the Group")                           

                         CORPORATE AND TRADING UPDATE                          

The Board of Corsie, the AIM listed specialist in the assembly and sale of
products and services to the leisure market, is pleased to provide shareholders
today with a corporate and trading update addressing the successful integration
of Kaloss - acquired in September - and an increase in warehouse capacity.

KEY POINTS

  * Current trading ahead compared to last year;
   
  * Integration of Kaloss ahead of schedule;
   
  * £554,000 of Kaloss overheads eliminated; and
   
  * Warehouse capacity increased from 7,500 sq. ft to 78,000 sq. ft on fav
    ourable commercial terms.
   
 

CURRENT TRADING

I am pleased to report that trading has been in line with management
expectations since the time of the Group's interim results and the Board
anticipates that the year end results will be comfortably ahead of those last
year.

Kaloss is trading profitably and has good opportunities within its respective
markets. The Board believes that Kaloss has excellent scope for development and
expansion and the Board's aim is to reinforce its position as a market leader
within the health supplement market.

As highlighted in the Group's statement of 19 September, for the year ending
March 2006, Kaloss delivered revenues of £1.4m. The Board anticipates turnover
for 2007 to be broadly in line with this figure, and looks forward to updating
shareholders in due course.

SUCCESSFUL KALOSS INTEGRATION

On 19 September, the Group acquired the business and assets of Kaloss
International Ltd., a distributor and wholesaler of health and beauty products,
for £434,000 which was subject to a net asset adjustment. I am pleased to
report the final consideration has now been agreed at £389,000. The reduction
relates to certain office fixtures which were not acquired due to our
relocation strategy.

Following the acquisition, the business was immediately relocated from
Chesterfield to Musselburgh with none of the original Kaloss staff retained.
One-off integration and redundancy costs are expected to be no more than £
90,000 with no further one-off costs anticipated in connection with the
acquisition. The integration of Kaloss has eliminated £554,000 of overheads
from the £626,000 required to operate Kaloss as a stand alone operation in
Chesterfield. The Kaloss business will be immediately earnings enhancing.

WAREHOUSE CAPACITY INCREASED

As part of the Board's growth plan, Corsie has completed one acquisition since
the Group's flotation in June and is working on various new distributorships
which the Board hopes to update shareholders on in due course. The immediate
priority is to consolidate our current position and grow market share
accordingly.

To eliminate current space constraints, and provide capacity for anticipated
future growth, the Board has concluded a 15 year lease with Premier Property
Group for a 78,000 sq. ft distribution warehouse facility in Haddington, East
Lothian.

It was the Board's intention to relocate to large adjacent premises on the same
estate in East Lothian. However, the benefits of the Haddington facility meet
all of the Board's criteria and will enable us to execute and consolidate our
focussed distribution strategy under the one operating overhead. The premises
have been secured on very attractive commercial terms, compared with average
rents for distribution premises in the East Lothian area. In addition to the
above terms, the Board has negotiated an option to purchase the freehold
interest for £1.4m. The option can be exercised during the first 5 years,
subject to 6 months notice.

Commenting, Richard Corsie MBE, Chief Executive, said:

"With the acquisition of Kaloss fully integrated, strong new business pipeline,
various distributorships under consideration and capacity increased, the Board
believes it has now built a solid base from which to significantly drive the
business to the next level, and looks forward to the next financial period with
confidence."

                                    --ENDS-                                    

Enquiries:

Corsie Group plc Tel: [phone]

Richard Corsie MBE, Chief Executive

www.corsiegroup.com

City Financial Associates Limited Tel: [phone]

James Caithie

Bishopsgate Communications Ltd Tel: [phone]

Dominic Barretto/Jenni Herbert