Trading Update

IS Solutions PLC
28 January 2003


I S Solutions Plc

Trading Update



IS Solutions Inc.

The Company announced at the time of its interim results in September 2002 that
its US subsidiary, IS Solutions Inc., had suffered a very severe turndown due to
the project based nature of its business and continuing major difficulties in
its US market. The Board continued to carefully monitor its progress during the
second half, which remained difficult, and concluded that it is unlikely that
there will be any significant improvement in trading in the medium term. As the
headcount had already been significantly reduced to four it has been decided,
following the year-end, to close IS Solutions Inc. with immediate effect.

The total costs of the closure, estimated at no more than US$130,000, will be
taken as a charge in the results for the year ended 31 December 2002, which are
expected to be announced in March 2003. As IS Solutions Inc. was loss making its
closure is expected to have a positive effect on the Group prospects for 2003.

Proquote Limited

It was announced today that Proquote Limited, an aggregator and distributor of
real time equity and market data, in which the Group has a minority shareholding
through AXL Performance Solutions Limited, had received a conditional offer for
the acquisition of its issued share capital from London Stock Exchange plc. This
values the Group's shareholding at up to £880,000 (against a book cost of
£25,000) of which £480,000 will be received in cash, upon the offer becoming
unconditional, with the balance payable upon the achievement by Proqoute Limited
of certain levels of annualised revenue over the next two years.  The board is
delighted with the strategic step forward for Proquote Limited and anticipates
increasing revenue from this customer.

In view of the value of the holding, the Group will be required (under the
Listing Rules) to obtain shareholder approval for the disposal and it is
expected that a circular will be despatched in due course.  Undertakings to vote
in favour of the resolution to dispose of the shares have already been obtained
from shareholders holding, in aggregate, over 50 per cent. of the issued
ordinary share capital of the Company.

To the extent that London Stock Exchange plc is in a position to apply the
provisions of Sections 428 to 430F of the Companies Act 1985 (as amended) prior
to the posting of the circular to shareholders, the Group will allow the shares
to be compulsorily acquired and will not be required, under the Listing Rules to
issue a circular.

Trading Results for the year ended 31 December 2002

The second half of the year reflected the benefit of the cost cutting exercise
previously implemented. Whilst the fourth quarter of the year saw an increase,
in the UK, in the number of requests for quotations across services and projects
it continued to prove difficult to turn these into a meaningful increase in
order level. Nevertheless the Group produced an operating profit in the fourth
quarter. Trading, prior to the closure costs of IS Solutions Inc. and the bad
debt of £220,000 for a US client announced at the time of the interim results,
will be broadly in line with the Board's expectations. The Company remains cash
generative with cash at the year-end of over £1 million (£758,000 at 31 December
2001).

Outlook

It is too early to give an indication for the current year although the
encouraging signs that emerged during late 2002 continue and, whilst visibility
remains poor, the Board views the current year with cautious confidence.


                      This information is provided by RNS
            The company news service from the London Stock Exchange