Trading Update

Montpellier Group PLC
20 May 2004

Montpellier Group Plc
('Montpellier' or the 'Group')

Trading Update

Following the recent management changes at Montpellier, the reconstituted Board
has thoroughly reviewed its businesses. Despite positive underlying current
trading in most of its businesses, the review has revealed material problems not
previously apparent relating to UK construction contracts entered into in prior
years.

As a result the Board expects to report a significant operating loss for the
current financial year ending 30th September 2004. In the Group's interim
results, which will be announced on 3rd June 2004, the Board will set out in
more detail the findings of its review together with its  business recovery
plan.

                                                                     20 May 2004

Enquiries:

Montpellier Group plc                                         Tel: [phone]
Roy Harrison, Executive Chairman
Sandy McArthur, Group Financial Controller

Rowan Dartington                                              Tel: [phone]
John Wakefield

College Hill                                                  Tel: [phone]
Mark Garraway
Matthew Gregorowski


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