Trading Statement

RM PLC
4 February 2002

                                                             4th February 2002

                          RM plc - Trading Update

RM plc, the leading supplier of information and communications technology
(ICT) to UK education, today provides a trading update following the
completion of a review taking into account the first quarter's trading, recent
detailed market research and information gathered at BETT (the major
educational ICT trade show which took place during January 2002).  In the
light of this review the Board now expects turnover to be approximately 15%
lower than last year and, whilst it is early in the year to predict, the
Board's current view is that profits are likely to be less than half of
those last year.

RM's business is highly seasonal and the first quarter accounts for only a
relatively small proportion of the full year's business.  Nevertheless,
trading in the first quarter was in line with plan and supportive of market
expectations.  Net cash at the end of December was £30.3m and net funds were
£23.5m (after deducting loan notes).  Order intake in December and January,
however, was significantly below that in the same period last year.

As reported at the Group's preliminary results announcement in November 2001,
changes in the way government distributes Standards Fund (the funding for
building the National Grid for Learning) make it particularly difficult to
predict market size this year.  However, recent order intake performance -
combined with the results of RM's recent market research - has led the Group
to revise its full year order forecast.  Order intake is now expected to be
significantly below plan and, as a result, turnover will be less than last
year.  As previously announced, turnover from the one-off LSP activity will
decline by approximately £20m this year, which represents about half of the
overall turnover reduction.

The reduction is due to:

   The announced increases in Standards Fund are not expected to translate
   into the previously anticipated growth in RM's accessible market.  In
   particular, more money is going into broadband connectivity.

   PC hardware continues to be a difficult market where it will be hard for RM
   to retain its traditional market share.  Our market research suggest that
   this will be exacerbated by a significantly faster than expected move to
   lower-margin notebook PCs.

   RM's new software products were very well received at BETT.  However, two
   of them - RM Community Connect 3 and SuccessMaker Enterprise
   (from NCS Learn) - will now be delivered later than planned and the Group's
   ability to ship significant volume of them in the current year will be
   limited.  RM Community Connect 3 is a major strategic upgrade for our
   customers and will generate a large amount of additional business for RM's
   other product ranges.  The product is now expected to ship in May
   following delays in final testing.

In addition, whilst digital learning resources continue to represent a major
strategic opportunity for RM, the Board is increasingly concerned about the
BBC's Digital Curriculum proposals.  The Group has joined forces with other
industry partners to defend choice, innovation and diversity in the digital
learning resources market.  The Board has authorised expenditure - included in
the revised forecast - to support whatever actions we agree with our industry
partners are necessary.

In order to ensure clarity of management, the Board has decided that the
previously announced succession of Tim Pearson as Chief Executive will now
take place with immediate effect.  As planned, Richard Girling will remain on
the Board until the Group's interim results announcement in May.

In response to the changes in the Group's markets, the Board has instituted a
review of all aspects of the Group's business.  This review will be headed by
new Chief Executive Tim Pearson and its conclusions - along with details of
the Group's strategic development - will be communicated at the time of the
interim results announcement in May 2002.

The educational ICT market continues to offer good potential for growth.
Total education expenditure is planned to continue to grow by 9% year-on-year,
and the Secretary of State for Education, speaking at BETT 2002, underlined
the Government's view that ICT is the major transformational force in the
educational arena.  The Group has a strong balance sheet.  The Board has
confidence in the underlying strengths of RM's business and intends that,
through appropriate action, RM will re-establish its position.

                                    - Ends -

For more information please contact:-

Richard Girling/Mike Greig/Tim Pearson, RM plc                   01235 826000

Andrew Fenwick/Fiona Fong, Brunswick                             020 7404 5959


Analyst briefing

A briefing to analysts will take place at 9.30 am on Monday 4 February at 16
Lincoln's Inn Fields, London WC2A 3ED.

A live audio feed will be available to analysts and shareholders who are
unable to attend this meeting in person.  Please dial telephone number:
020 8240 8245 to access this facility.

The audio recording of this briefing will be available on telephone
number: 020 8288 4459, access code - 648772.



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