Trading Statement

Focus Solutions Group PLC
21 October 2002


                    Focus Solutions Group plc 
                       
                        Trading Statement

The Board of Focus Solutions Group plc ("Focus" or the "Group") today issued the 
following trading statement.

After a promising first quarter and a 23% increase in revenue in the UK during 
the first half of the current financial year as compared with the same period 
last year, the Board expects that the Group's results for the year ending 31st 
March 2003 will be below market expectations.

We have secured 12 new contracts since the beginning of the year in the UK, 
however, because of the considerable pressures on the UK insurance market, some 
customers have delayed the placing of orders. As a consequence, the revenues in 
the second half of the year will be lower than was previously expected. 
Nonetheless, there are now 12 leading UK insurance companies and pension 
providers who are providing 30 products electronically using goal:technology, 
(its XML based toolkit) and four of them are using it in more than one 
distribution channel.

Market conditions in the US in both the insurance and IT sectors are, if 
anything, even tougher than in the UK. Whilst we have a number of very good 
prospects we have not yet signed any contracts in the US. As a result, the Board 
believes that there is unlikely to be any significant revenue from these 
prospects in the second half of the year and this business area will not be 
earnings neutral, as originally indicated at the time of the acquisition. 
Additional sales resource is being made available and the situation is being 
monitored closely. The Board remains confident that the US market has the 
potential to generate significant shareholder value.

In the UK, we have continued to experience growing interest and an increasing 
sales prospect pipeline from both existing and potential customers looking to 
extend their use of goal:technology into other distribution channels; for 
example, the Group has won the first sales for its Multi-Channel Advice 
solution, (MCA) that was launched in July. Accordingly, we remain committed to 
investing in goal:technology and we have invested over £716k in R&D in the first 
half of the year. In the second half of the year we will continue to invest but 
the amount will be consistent with the lower level of revenue anticipated.

It is expected that our interim results will show an operating loss before 
interest, tax and depreciation of not more than £1.6 million on turnover of 
approximately £2.8 million. The cash position as at 30th September was £2.1 
million after spending £941,000 acquiring MPO Inc. Although cash spend initially 
increased following the acquisition, it decreased in the second quarter as costs 
were held and revenues increased. Turnover in the second quarter was 27% up on 
the first quarter.

In view of the disappointing delays that we are experiencing the Board has 
decided on a number of cost cutting actions that will be implemented during the 
second half of the financial year and deliver annual cost savings of 
approximately £1.0 million.

Against a backdrop of poor market conditions the Board remains confident that 
its growing revenues combined with tight control of costs, will ensure that it 
continues making good progress in implementing its strategy to deliver solutions 
based on goal:technology.


Enquiries 

Focus Solutions Group plc                01926 468300

John Streets

Claire Forrest

Citigate Dewe Rogerson                   020 7638 9571

Chris Barrie 

Sara Batchelor


Notes to editors:

About Focus Solutions Group
Focus Solutions Group is a specialist provider of sales automation solutions for 
the financial services industry. Based on goal:technology, its business process 
automation software. Focus delivers straight through electronic processing to 
create a paperless sales process across multiple channels to market including 
IFA portals, websites, Extranets, direct sales and call centres.

Focus has a portfolio of market facing propositions and services to help 
customers to implement and use its technology effectively. Propositions are 
available for the Life and Pensions, Mortgage and General Insurance markets. 
Focus has specific expertise in Point of Sale systems, having developed RIO, 
Norwich Union's POS solution for their direct sales, tied agents and 
telemarketing channels.

Focus customer base includes: Assureweb, The Exchange, Friends Provident, 
IFAengine, Legal & General, Norwich Union, Prudential, Scottish Equitable, 
Scottish Provident, Scottish Widows, Skandia, Standard Life and Zifa.

Focus recently expanded internationally by acquiring its US partner, MPO, to 
form Focus Solutions Inc.   For further information on Focus Solutions, please 
visit www.focus-solutions.co.uk.
   


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