Trading Statement

Lo-Q PLC
04 February 2003


EMBARGOED 0700 04.02.03


Trading Update

Lo-Q plc ('the Company') announced on 6 September 2002 that the Lo-Q System is
now installed in 6 theme parks in the USA, and was earning revenue in all six
parks.  These are Six Flags Over Georgia, Six Flags over Texas, Six Flags Worlds
of Adventure, Six Flags Great Adventure, Six Flags New England and Six Flags St.
Louis.

The Company has now concluded arrangements to lease the equipment in the 5 new
parks with a third party leasing company.  Under the terms of the lease the
Company has sold the Lo-Q systems installed in five parks and in return will
receive US$3.3m, with half of the funds being released now and the balance over
the next 3 or 4 years depending upon revenue levels derived from the systems.

At the same time the Company has agreed with Six Flags Inc that it would
currently not be prudent to install the Lo-Q system in any further Six Flags
parks in view of the uncertain economic climate.  Six Flags and the Company have
therefore agreed to concentrate on maximising the revenues at the six parks
already installed.  As part of this revised agreement, Six Flags will take over
responsibility for operations sales and marketing in these parks.  The Company
has also entered into a new agreement for Six Flags over Georgia for a further 4
years until December 2006.

For the Company, the consequence of these revised arrangements is that it will
receive lower than the anticipated revenue at the time of its admission to AIM,
although the profit share per park will be broadly unchanged.  The agreement not
to install further parks at the current time significantly decreases the
Company's current capital commitments.

The Company expects to announce its preliminary results for the year ended 30
September 2002 during the week commencing 10 February 2003 and expect these
results to show a loss before tax of not more than £1.75 million.

In parallel with the above, the Company announces management and organisational
changes designed to focus on both generating revenues from existing parks,
obtaining orders from new theme park groups and obtaining orders from
organisations in other markets where the Lo-Q technology can be used.

Nick Gordon, Finance Director, will take overall responsibility for all the
day-to-day management and operations of the group.  Leonard Sim, who invented
the Lo-Q system, will take specific responsibility for sales, business
development and strategy.

The changes referred to above have allowed the Chairman of the Company, Jeff
McManus to progressively reduce his time commitments to the Company, although he
will continue as non-executive Chairman.


Enquiries:

Lo-Q plc                                                         01491 577210
Nick Gordon,  Finance Director


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