Trading Update

Auxinet PLC
16 January 2001

Auxinet plc
Trading update

The Auxinet Group is pleased to report on progress in the year 2000.

DataCash, the UK's leading e-commerce payment-solutions-provider ('PSP'),
exceeded projections in terms of sales revenues, transactions volumes and
merchant growth. In particular, sales revenues for the second half were more
than 40% up on those for the first half, and, total revenues for the year of
approximately £1.2 million were over 370% higher than those achieved in the 10
months to 31 December 1999. Transaction volumes for the year were some 4.25
million, compared to 530,000 in the 12 months to 31 December 1999, with second
half transaction volumes being some 57% higher than the first half.  

The number of merchants at the year-end showed an increase of 160% from the
figure at the end of 1999.

DataCash enters 2001 with great confidence, with expectations of continuing
the strong growth in both transactions and revenues. Initiatives started in
2000 to capitalise on our payment methodology and technology in new market
opportunities should fuel our growth plans.

For example, we are focusing on the broader aspects of retailing, offering a
single consolidated solution across all sales platforms be they physical, call
centre or web-based Our resellers are introducing us to a number of such
opportunities, and we expect to report more fully on some of these with the
Group's final results at the end of March. We remain the Payment Solution
Provider (PSP) of choice and market leader and remain committed to deliver
solutions that provide both value and service. 
 
In 2000 we have made a major investment in developing a new version of the
DataCash product to meet future needs. We now have a product that is more 
scaleable and can integrate  more easily  into new products, so that it
remains a stable, reliable platform that can meet the dynamic needs of our
expanding customer base. The product is now completing its final tests and is
expected to be introduced in the Spring of 2001.

In our interim statement, I expressed the optimism of the Board that DataCash
would become profitable in the second half of 2001, and we see no reason to
change that view.

The B2B payment solution, Platima, that the Group has been developing to
complement DataCash's B2C e-commerce payments solution is expected, when
launched, to consolidate the Group's leading position as a provider of
e-commerce payments services in the UK.  We will report on the encouraging
progress with Platima with the Group's final results.

In the interim statement I also anticipated that the recruitment business
would have a  good second half. Turnover in the second half was nearly double
that of the same period of 1999. Revenues for the full year grew by nearly 60%
to approximately £4.2 million. Having achieved profitability in the second
half, the recruitment business should build on the significant progress
achieved in 2000. It entered 2001 with a good order book, and the Board is
confident that 2001 will see it increasingly profitable.  In particular, the
performance of Boldly-go, our on-line recruitment business, is worthy of
mention.  Only launched in March 2000, it achieved turnover of more than
£500,000 for the year and is set to be profitable this year. The management of
this division show a fine example of the imagination, application and drive of
the team that is taking the whole recruitment business forward.

Our balance sheet remains strong, with cash balances well in excess of £3
million. The recruitment businesses are expected to generate cash throughout
2001 with DataCash expected to become cash positive during the year.

We expect to publish our results for 2000 in late March and will provide
further commentary on our progress at that time. 

David Bailey
Chairman