Strategic Review

InterX PLC
27 March 2001



                 InterX plc ('InterX' or the 'Company')
                          Strategic Review

Introduction

The Board of InterX is pleased to announce the results of its 
Strategic Review, commenced by the Company's new Chief Executive, 
Simon Barker, on 14 February 2001.

The review involved an appraisal of all areas of the Company's 
marketplace, assets and business principles.

The review has confirmed both the significant capabilities of 
InterX's technology and also its relevance to the challenges facing 
all companies as attempting to deliver a return on investment (ROI) 
from their online operations.


Market Overview

Any business, to be successful, has to marry strategic direction with 
effective day-to-day operational control. Effective operational 
control is applied through a combination of financial systems and 
other management reporting procedures, all designed to report 
accurately, and in a timely manner, the Key Performance Indicators 
(KPIs) relevant to the business in question. 

Ultimately, the integration of the financial and other reporting 
systems is achieved through the use of technologies such as 
Enterprise Resource Planning (ERP) systems. ERP systems monitor 
activities or events, as well as transactions, to highlight, amongst 
other things, areas of inefficiency that do not become apparent 
through detailed examination of a profit and loss account alone.

The drive in the last few years to develop online operations, whether 
by new '.com' start-ups or established organisations, and their 
widespread failure, even with sound business models, can be explained 
as follows: there has been a breakdown in the basic business 
requirement to marry strategic direction with effective day-to-day 
operational control. Notwithstanding occasions of business 
inexperience and the impact of the unknown, this breakdown has arisen 
from the failure to establish internal systems which monitor 
effectively the activities, or events, occurring within the 
respective online systems and their failure to deliver appropriate 
management information. 

Number of hits, page impressions, IP logs, selective field session 
tracking, etc.; all are either inadequate, inaccurate or irrelevant 
as a foundation for true business measurement and analysis. Put 
simply, online operations have failed to harmonise their KPIs with 
those of established, offline businesses. Until this happens, the 
extension or transfer of a successful business into an 'e' 
environment will ultimately fail to maximise profitability and ROI.

InterX BladeRunner

It is the Board's belief that InterX's BladeRunner technology can 
enable online businesses to monitor the relevant KPIs and therefore 
enable the profitable migration of activities into an inherently 
lower-cost model. The opportunity thus presented, particularly in the 
current market conditions, is significant.

To date, BladeRunner has been promoted as an internet application 
platform for the development of complex, greenfield, eCRM solutions. 
Its distinctive 'event-based' and 'data-driven' architecture provides 
significant levels of base functionality; including multi-channel 
support, predictable scalability and seamless integration with other 
systems and technologies. 

BladeRunner also ensures that all events, be they user actions, 
transactions or responses, are recorded in an 'Activity Log', 
providing for absolute accuracy and 'play-back' potential. It is this 
exposure of every event that provides for measurement, analysis, 
reporting and response -the basic requirements for establishing 
effective operational control. 

This control allows the harmonisation of a business's KPIs, across 
both the online and offline functions, thus dramatically increasing 
the chances of its business objectives being achieved and, 
consequently, assuring return on investment. 

The Board sees the online business success enjoyed by InterX's 
customers as proof of this principle. Accordingly, the ongoing 
strategy of the Board is to use the BladeRunner platform to develop 
and market products which deliver prompt return on investment to its 
customers. Also, these products must deliver first mover advantage to 
the Group in order to minimise the impact of competitive activity, 
while paving the way for other organisations to use the BladeRunner 
platform to develop their own applications.

Actions Arising as a Result of the Strategic Review

As a result of the Strategic Review, the following actions are to be 
taken:

*  InterX will cease to market BladeRunner as an eCRM platform;

*  InterX will regularly develop products, based on the 
   BladeRunner platform;

*  InterX's products will be capable of easy and prompt 
   implementation into any online IT infrastructure, be it new or 
   old, and by any suitably qualified third party; 

*  InterX will complement its direct sales strategy by engaging 
   significant numbers of partners in order to maximise the 
   revenue potential of the products. These partners are 
   anticipated to include:
   o  Resellers, system integrators & consultants
   o  Management consultancies
   o  Complementary software vendors
   o  Infrastructure providers, be they hardware or software 
      manufacturers
   o  Internet service provides and hosting service providers;

*  Notwithstanding the advantages associated with its status as a 
   public company, InterX will retain a start-up attitude to cost 
   control and management structure in order to protect its cash 
   reserves and encourage innovation in all areas of the company; 
   and

*  InterX will align interests of shareholders and employees more 
   effectively by the introduction of innovative new share 
   incentive schemes - schemes that provide the senior management 
   both with the flexibility to effectively incentivise staff 
   during the critical early phases of this new stage of growth 
   and with the future ability to offer incentive packages that 
   are competitive with those of the Group's US-based competitors.

Progress Report

Significant progress has already been made with the implementation of 
this new strategy:

*  A complete review of all costs and structures has resulted in a 
   material reduction in the overheads of the business. The 
   reduction in staff costs, announced on 27 February 2001, 
   together with other cost savings, has resulted in a reduction 
   of over 50 per cent to the anticipated monthly 'burn rate';

*  A new company structure is being implemented. The key areas of 
   improvement have been in the creation of:
   o  An integrated Research & Development Group, responsible 
      for all aspects of innovation and product manufacture. 
      This new team has been tasked with producing regular and 
      frequent product version updates while assuring the 
      accessibility of the products to volume markets through 
      the porting of those products onto multiple platforms and 
      operating systems; 
   o  An integrated Marketing & Alliances Group, responsible 
      for establishing new routes to market through a 
      combination of alliance building, external marketing and 
      market research - the results of which will significantly 
      influence future product developments;
   o  A new, highly-motivated Sales Team, responsible for all 
      aspects of sales performance and the sales process; and
   o  A new Operations Group, responsible for maximising the 
      financial benefit to the Company of each sale made by the 
      Sales Team.

   In short, this structure creates four groups focused on making 
   products, generating demand, achieving sales targets and 
   maximising profitability.

*  The first of the new products, InterX WAI, is currently in 
   'beta-test' at one of our major customers.  The trade launch is 
   scheduled for June of this year. 


InterX (WAI) - the Web Application Integrator

InterX WAI is a software product that provides a business with the 
ability to manage and control its legacy online environments.  

InterX WAI enables customers to leverage value from multi-platform 
web legacy systems without requiring them to be completely re-written 
- a process that has, historically, involved significant risk and 
considerable cost.

Some of the features and benefits of InterX WAI are:
 
Features                           Benefits

Single Customer View          -    Control and management of users'
                                   experience
                              -    Tracking of customers across all 
                                   of online systems, regardless of 
                                   device
Single Sign-on                -    Enhanced customer experience
                              -    Secure and consistent business
                                   environments

Reposition business products  -    Speedy creation of new customer
                                   propositions without extensive
                                   programming
                              -    Easy re-branding of existing products
                                   or businesses

Cross sell business products  -    Enhanced capability to leverage 
                                   product/customer cross 
                                   selling opportunities 

Enable partner selling        -    Transparent integration of third party 
                                   partners' business processes
                              -    Consistent tracking of user activity 
                                   across all systems
                              -    Easy control of integrated 
                                   partner solutions
                              -    Effective and rapid change tool 
                                   for repositioning products to 
                                   satisfy new markets

Facilitate e-Business 
unification                   -    Integration of lines of business 
                                   together with centralised control and
                                   single reporting database capability.


Not only does InterX WAI provide a compelling solution to a common 
and significant corporate IT issue, but it delivers to our customers 
the additional inherent capabilities of InterX's BladeRunner platform 
more quickly and more cheaply than previously possible.

As such, and through its implementation, InterX WAI allows our 
customers to expose all user events occurring within their online 
systems, providing for measurement, analysis, reporting and prompt 
response. InterX WAI therefore enhances control of their businesses 
through the potential to implement control over their online 
operations.


Conclusion

InterX WAI is one of many new products to be introduced to the 
market, leveraging the full benefit of InterX's BladeRunner platform, 
over the coming years. 

The completion of the Strategic Review has reaffirmed the belief of 
the Board in the potential of the business. 

There are significant challenges ahead for the Group. Notwithstanding 
these, the Board is looking to the future with confidence.


Enquiries:

Simon Barker, Chief Executive                     020 8817 4409
Simon Miesegaes, Finance Director                 020 8817 4409