BETT 2003

8 January 2003 RM plc sets the standard for educational ICT at BETT 2003 RM plc, the UK's leading supplier of ICT and services to education establishments, will be showing its broadest ever range of products at BETT 2003, which opens today at Olympia. RM's line up includes major new products and services, along with significant enhancements to existing product ranges, in each of the areas of educational software and services, infrastructure software and services, and hardware. On Thursday 9th January 2003, RM will be hosting a product briefing at BETT for investment analysts to demonstrate a range of new and existing products. No update on trading will be given at this briefing. RM also announces today that it has signed a contract to provide online learning content through the BT Learning Centre - BT's new online home learning subscription service. RM will be providing digital learning materials, based on the successful Living Library service, designed to provide homework and home learning support for children and parents. Tim Pearson, CEO of RM, commented, 'As we reported at our Preliminary Results announcement, RM's recovery is underway. We have made good progress on product development over the last twelve months, and the breadth and depth of products on show at BETT are the best demonstration that RM continues to set the standard for educational ICT. Whilst market conditions remain tight, RM's product range and unrivalled customer relationships position us well to take advantage of the opportunities the market offers us.' Educational software and services * ICT Alive - a new whole-course, whole-class interactive teaching service for delivering ICT as a curriculum subject in primary schools. ICT is a core curriculum subject, which recent RM research shows primary teachers find difficult to teach. ICT Alive addresses this need. * Easiteach Studio 2 - a further development of RM's flagship products for whole-class teaching using interactive white boards that provides interactive teaching tool for use across the curriculum. RM will also be previewing Easiteach Literacy, which provides detailed curriculum material for whole-class literacy learning in primary schools. * Virtual Teaching and Learning Environment - RM will be demonstrating a first prototype of its new Virtual Teaching and Learning Environment (VTLE) including content from Harcourt Education, Spark Learning, Oxford University Press and RM itself. The VTLE builds on RM's innovative MathsAlive concept, and provides a framework for delivering a wide range of blended learning resources. * Curriculum Online - RM will be showing its full range of Curriculum Online compliant learning resource products, which all qualify for purchase under the Department for Education and Skills' £50 million electronic learning credit initiative. Infrastructure software and services * RM Community Connect 3.1 - the latest version of the most widely used network infrastructure product in UK schools includes an enhanced version of RM Tutor (which allows teachers to monitor and interact with users of individual network stations) along with enhanced support for mobile devices, including the RM Tablet PC, and 54 Mbs wireless networking. * RM Window Box - the latest version of RM Window Box XP, which is now available on the RM Tablet PC as well as notebook and desktop PCs, comes complete with hundreds of curriculum activities that make maximum use of its extensive software bundle. It also includes Textease Studio Plus from the Group's Softease subsidiary. * RM Assist - a new service from RM providing a high level of support, including access to an on site technician, for regional groups of schools. RM Assist addresses the need for schools to have access to highly qualified technical resource, which would be difficult and expensive for them to provide for themselves Hardware * RM ClassBoard - RM's flexible and affordable interactive white board range has been enhanced with the addition of Bluetooth connectivity and the introduction of improved whole-class teaching software. In addition, RM ClassPad is a new handheld device that also offers flexible and affordable support for whole-class teaching. * Mobile computing - the RM Tablet PC, along with an enhanced notebook range featuring 54 Mbs wireless connectivity, will be featured at BETT. The Group will also be showing the new RM Notebus, a secure method of managing, transporting and charging notebook computers in a classroom environment. * PC hardware for education environments - RM continues to develop PC hardware specifically designed for the classroom environment. RM Intellidesk, the Group's innovative integrated desk and PC, will be on show at BETT, as will the F Series PC, a small form factor computer designed to take up minimum space in the classroom. - Ends - For further information, please contact: Mike Greig/Phil Hemmings, RM plc 08709 200200 Andrew Fenwick/Fiona Fong, Brunswick 020 7404 5959 Notes to Editors: BETT takes place at Olympia, London from 8Th January to 11th January and is the UK's major educational ICT showcase. Last year it was visited by more than 20,000 educational professionals and independent research (commissioned by RM) showed that over 60% of them visited RM's stand. In its Preliminary Results announcement, dated 25th November 2002, RM stated: 'As is always the case at this point in RM's year, it is too early to give an indication of the outcome for 2003. However, performance in the second half of 2002 was very much in line with management's plan and markedly better than that in the first half. We reinforced our market-leading position and released a significant number of strategically important new products that demonstrate education vision and effectiveness. 'RM has a highly seasonal business, with the majority of revenue arising in the second half and gross profit margins materially higher in the second half than in the first. The current year will benefit from a full year of cost reductions and, as a result, we expect a significant decrease in the first half loss. 'For the year as a whole, we expect turnover to be broadly flat. There will be significant reduction in turnover from LSP, but we expect this to be offset by growth elsewhere including some contribution from our strategic projects activity. We have put in place a business plan that recognises the significant changes in RM's market environment and still delivers an acceptable level of earnings growth. 'Looking further ahead it is clear that education, and increasing private sector involvement in education, remain important government priorities. RM is a leading commercial provider to education in the UK and we intend to capitalise on the opportunities our skills, products, services and market position will offer us.'

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