Trading Update

Actif Group PLC
12 July 2004



                                Actif Group plc

                                 Trading update

At the time of the interim results announced by the Company in March this year,
the Chairman reported that good progress had been made towards increasing sales
and margins of Elle merchandise across both the wholesale and retail
distribution channels. However he also stated that the Group was finding
post-January trading in its retail formats to be unpredictable and took a
cautious view about the short term outlook for Elle retail.

Since then retail trading conditions in Elle prime stores and concessions have
deteriorated sharply resulting in total retail sales for the 23 weeks since 31
January 2004 being 14% below last year, which represents a like for like decline
of 18%. This is attributed to difficult market conditions, where the cool, dull
weather since Easter contrasts sharply with the prolonged spell of hot, sunny
weather enjoyed last year. This is a similar situation to that being experienced
by other High Street clothing retailers, but has been exacerbated by a poor
performance of High Summer ranges, especially within the Tops category, which
accounts for approximately 50% of the retail sales mix.

This sales shortfall will have an adverse impact on profitability, and the Actif
Group Board now anticipates that the outcome for the year to 31 July 2004 will
be significantly below market expectations, coming in at around the break-even
level. The Group continues to generate good cashflows and net debt at the end of
the year is anticipated to be in line with last year at around £1.1m, following
capital expenditure of £0.7m.

Sales within the wholesale business have remained strong, building on the growth
seen in the first half, with full year sales increasing by 35% on last year.

Mark Evans, Chief Executive of Actif Group comments:

'This is a disappointing set back to the profit recovery of the Group,
particularly given the improvement in the wholesale division. The weakness in
our retail summer ranges has been compounded by more challenging market
conditions.

The necessary actions have been taken to address the product weaknesses
highlighted in the Spring / Summer season and the results of these actions are
evident in the strength of Autumn / Winter 2004 wholesale sales.

We remain confident in the Elle brand appeal in the UK market and in our future
development.'


Enquiries:

Mark Evans, Chief Executive, Actif Group plc             Tel: [phone]
Julian Ghinn, Finance Director, Actif Group plc          Tel: [phone]

Jessica Rouleau, gcg hudson sandler                      Tel: [phone]




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