Trading Statement

IS Solutions PLC
22 May 2002

I S Solutions plc

Trading Statement

Market conditions for the first half of the year in the sector in which the
Group operates have continued to be difficult. Group performance has been
disappointing and below that experienced in the equivalent period last year.
Whilst the Financial Products and Outsourcing activities continue to perform
well, there has been no recovery in new project based business. There has been a
deferral of two projects for existing clients in both the UK and US in recent
weeks which the Board expects now to commence in the second half.

Whilst tender levels for new and existing clients remain positive, the Group is
expected to report material losses before goodwill amortisation for the first
half on reduced turnover. In addition, the Board believes that one client of the
US operation, for whom work was carried out last year, may default on some or
all of the debt remaining outstanding, which could adversely affect the first
half results by up to a further £200,000.

The Board has introduced further significant cost savings within the business
that will be reflected in the second half performance. The Board indicated in
the preliminary results statement issued on 11 April that it believed that it
was likely that some form of market recovery would be in evidence in the second
half of the year, and indeed any reasonable recovery would have a material
effect on Group profitability. Whilst there is no evidence of this recovery at
present the Board believes that current market expectations for the year as a
whole remain a realistic target.

END


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