AGM Statement

PHONELINK PLC 23 July 1999 PhoneLink plc Annual General Meeting Statement Proposed Trading Update for Release at the AGM Since the year end we have seen a continuing improvement in our markets but this has been gradual rather than rapid. External factors such as the Year 2000 continue to impact sales of new software products particularly in our Customer Services and Database Management division. This is occurring across the software industry as businesses complete their Year 2000 compliance work and then put their systems into quarantine with no new system changes planned until after the millennium. The impact of the Year 2000 on sales as the year progresses towards the millennium is difficult to predict and this may affect trading further in the period to December 1999. The low oil price, which affected our major customers in the corporate travel division last year, has now recovered significantly and this division is once more generating modest profits. Since the year end PhoneLink's on-line services division has made good progress in achieving sales of its Electronic Commerce systems to SmithKline Beecham and the Builders Merchants Federation. The division has also expanded its software sales of Ticket Window internationally. A dedicated international sales manager has now been appointed to spearhead the effort to sell Ticket Window and its derivatives overseas. The Tel-Me TravelClub.Com which allows customers to browse and book flights on the Internet and was launched in May 1999 is gathering momentum rapidly. The number of visitors to the site has built up to around 6,000 per day currently and the proportion of visitors purchasing is increasing. Overall the prospects for the businesses within the Group remain positive although momentum is building more slowly than expected in certain areas principally as a result of external factors. Net cash balances at the end of June were £2.0 million. For further information, please contact: PhoneLink plc Graham Ramsey, Chief Executive 0151 608 0205 Richard Law, Finance Director Ludgate Communications Richard Hews 0171 253 2252 Victoria Martin

Companies

GB Group (GBG)
UK 100

Latest directors dealings