Trading Statement

Diagonal PLC
10 October 2000


                         Diagonal plc

                            Update


Diagonal plc will be making a presentation to analysts later
today.

The recently formed Consulting division, led by Christine
Chittock, retains its SAP core and has extended its activities
into EAI* (using the skills of the MFT business) and has
accelerated its move into e-commerce solutions.  This meets
the demands of global clients.

A significant new division, Secure Networks, has been formed
under David Thompson to offer seamless security services.
These services provide an essential link in the e-commerce
chain. This division evolved from the businesses of Eurostar,
Centurycom and Interop.

The Company will be stating that, for the year to 30th
November 2000, current trading is in line with market
expectations.

The Consulting Division enjoyed an encouraging third quarter
and Secure Networks division continues to trade strongly.  The
Company views the future with confidence.


* Enterprise Applications Integration


Enquiries


Graham Creswick
Chief Executive Officer       Tel:  [phone]
Diagonal

Ian Seaton
Citigate Dewe Rogerson        Tel: [phone]