Trading Update

e-district.net PLC
7 August 2000

                                       
                       e-district.net plc ('e-district')
                                       
                   Trading update - 6 months to 30 June 2000
                                       
e-district,  the  AIM-quoted  interactive  TV   developer and owner   of
LeisureDistrict.net, a  leading  interactive  entertainment and community
channel, announces that turnover for the six months ended  30 June 2000  is
likely to be approximately £1.2 million (gross of commission). The reported
figure under  new  accounting  treatment  (see  below) is likely to be
approximately £1.0 million. This represents an average compound monthly growth
rate for the six months ended 30 June 2000 of 28% with profitability ahead  of
expectations.

It  was outlined in the company's prospectus of February 2000, that e-district
would instigate a variety of promotional and marketing campaigns in  targeted
territories. The establishment of these programmes, including the negotiation
of agency  agreements  for  US  marketing,  took longer than anticipated.
Consequently, marketing activities during the first three months of  the year
were at a lesser rate than expected though the business is now seeing very
strong growth.

A  key  element  of  this  strategy has been the appointment  of  Engage  Inc.
(NASDAQ:  ENGA),  a leading provider of online advertising solutions,  with  a
remit  to exploit their cross-border capabilities to maximise the sales of  e-
district's  advertising  products in both the US and  Europe.  Since  Engage's
appointment  in May 2000, e-district has achieved high rates of sales  growth,
particularly in the US. Turnover (gross of commission) for April, May and June
2000  was,  respectively, £163,000, £226,000 and £407,000. This represents  an
average  compound  monthly growth rate for the second  quarter  of  38%.  This
growth  trend  has  accelerated  through July for  which  turnover  (gross  of
commission) was approximately £600,000.

Financial performance

Success in striking distribution deals with major channel partners, including
Cable & Wireless, Telewest and Freeserve, has exceeded directors'
expectations. This has largely negated the need to undertake consumer-focused
advertising in the short term, with a resulting cost saving. Together, with
tight control over other operating costs, this has contributed to earnings
significantly ahead of expectations in the market.

Accordingly, the company has maintained a strong positive cash position as at
30 June 2000 despite undertaking the majority of forecast capital expenditure
for the 2000 financial year within the period. The company's net cash position
at 30 June 2000 was £13.8 million.

Accounting treatment for turnover

It is likely that the substance of the company's relationship with Engage Inc.
will dictate that related revenues be stated net of their commission for the
purposes of statutory financial reporting. On this basis, the reported
turnover figure for the six months ended 30 June 2000 would be approximately
£1.0 million. This treatment has no effect on earnings, although the terms of
the relationship with Engage confer significant benefits to e-district in
terms of reduced working capital funding requirements. The directors,
therefore, consider this to be a positive development.

Prospects

As reported by the company, e-district has been successful in signing major UK
cable and other network operators as distribution partners, augmenting
existing relationships in the US. The directors confirm that negotiations in
respect of similar partnerships in the UK, continental Europe and the US are
proceeding well.

The LeisureDistrict user base continues to grow, spurred by the launch of
partners' digital interactive services. As at 30 June 2000, there were 2.1
million registered users (31 December 1999: 1.5 million) of which 1.3 million
were active in the month of June and all were active within the four months
ending 30 June. Churn remains minimal at approximately 0.2% per month based on
registered users.

Accordingly, the company has devoted substantial efforts to building the
products and tools necessary to maximise the value of a rapidly growing global
user base. Most notably, e-district has recently launched adX, an enhanced
broadband advertising format, deliverable over interactive TV.

The directors remain confident about the results for the year as a whole.



For further information, please contact :

e-district                     Frank Lewis, Chairman
                               Steve Laitman, Chief Executive   020-8515-2800

Gavin Anderson & Company       Gerald Gradwell
                               Rob Gurner                       020-7457-2345