Trading Update

Netcall PLC
20 May 2005



20 May 2005
                                  NETCALL PLC
                          ('Netcall' or 'the Company')

                                 Trading Update

 Contract to supply QueueBuster to leading international financial institution

Netcall sells telephony solutions, including its innovative flagship product
QueueBuster TM, which enables call centres to manage call queuing, reduce costs
and enhance customer service.

St. Ives, England: Netcall plc (AIM: NET) today provides an update on trading as
it approaches the end of its current financial year.

A cornerstone in Netcall's strategy is building the Company's hosted services
business focussed on QueueBuster. This service allows users to route calls
through Netcall's own systems without the need to install the product on site. A
hosted services implementation can be deployed more simply without large capital
investments, and the sales cycles has to date proven to be significantly shorter
compared to the QueueBuster product, which is installed on customer premises.

The hosted services opportunity, targeting both large and small customers,
therefore addresses a much bigger market, compared to the QueueBuster product
offering, which predominantly addresses the largest call centres. The size and
number of businesses already using the QueueBuster service confirms this
opportunity.

Additionally, from Netcall's perspective, as the customer base grows, the more
predictable our revenue streams become and the less reliance Netcall will have
to place on larger contracts to install its QueueBuster products on site, which
by nature are volatile and difficult to predict.

Netcall is therefore pleased to report that the hosted services business has
been performing strongly during the second half of the financial year and is
continuing to show healthy quarter over quarter growth. Revenues from
QueueBuster Service have been growing at a monthly rate of 20% over the past 2
quarters and hosted services revenues overall have maintained a healthy rate of
quarter-on-quarter growth over the last year. New contracts include customers
acquired via sales channels, and prospects for continued growth are encouraging,
giving Netcall long term confidence in the stability and quality of the
Company's revenue base.

For the QueueBuster product, Netcall is also pleased to announce that it has
signed a three year Global Framework Agreement with an international financial
services company to provide its QueueBuster technology to support the company's
telephony operations.

The customer, who cannot be named for reasons of confidentiality, has trialled
and subsequently installed QueueBuster in a call centre which handles customer
telephone calls for a number of countries within the Europe, Middle East and
Africa region, helping to increase customer satisfaction and enhanced call
handling.

The complex nature and consequent extension of the negotiations of the agreement
has, however, caused an inevitable delay in the roll-out of the product beyond
the end of the current financial year.

This is the type of volatility that Netcall previously highlighted and is
seeking to avoid with an increased focus on the hosted services model. Netcall's
long term intention is for the business model not, as in the past, to be solely
reliant on sales of the QueueBuster product but instead to consist of a long
term annuity stream based on the provision of hosted services including
QueueBuster Service to a broad customer base.

The short-term result of the roll-out delays will be that revenues and profits
for the current financial year are likely to be less than those currently
forecasted.

This does not detract from the fact that Netcall has made significant progress
and has signed its first international agreement, which lasts for a minimum of
three years, with one of the world's largest financial organisations and the
contract has the potential to generate significant revenues moving forward. The
Company's expenses remain under control, gross margins are being maintained and
the cash position is currently £1.4 million. Combined with the continued growth
of the hosted services business, long term prospects are still therefore
favourable, and there is growing evidence that QueueBuster provides solutions to
major customer challenges and has a demonstrable impact on user efficiency and
productivity.

ENQUIRIES

Netcall plc (www.netcall.com)               Tel. [phone]
Ron Elder, Chairman
Henrik Bang, Chief Executive

ICIS                                        Tel. [phone]
Archie Berens                               or   [phone] 
                           




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