Trading Statement

RM PLC 25 March 2003 25h March 2003 Pre-close period update for six months ending 31st March 2003 RM confirms trading in line with expectations As part of its normal investor relations activities RM plc, the leading supplier of information and communications technology (ICT) and services to UK education, is issuing a trading update prior to the end of its half year on 31st March 2003. RM confirms that trading for the first six months of the year, and the current outlook for the full year, are in line with expectations. The Group's core schools ICT infrastructure business has performed satisfactorily over the first six months of the year. There has been good demand for networking products in primary schools, though demand driven by major projects in individual secondary schools remains slow. As expected, and accounted for in the plan for the year, the Group continues to see relatively weak demand in the digital learning resources market. As anticipated at the time of the Group's preliminary results announcement, increases in education funding are not translating into market growth because of both increased teacher salary costs and local authority funding changes. RM reported at its Preliminary results announcement that long-term strategic projects would be increasingly important to the business, both to underpin the Group's core activities and provide opportunities for the development of RM's education services business. There has been very good progress in this area of the Group's activities during the first half of this year. Since November, RM has announced a number of long-term project wins worth, in aggregate, at least £80 million over seven years. These projects will help offset the expected reduction in business from the Learning Schools Programme (LSP) in the current year, as well as providing additional visibility of future years' revenues. - Ends - For further information, please contact: Mike Greig/Phil Hemmings, RM plc 08709 200200 Andrew Fenwick/Mark Antelme, Brunswick 020 7404 5959 Notes to Editors: 1. The value of long-term project wins includes one contract - the extension of the Group's contract to provide managed ICT services in South Lanarkshire - which is still at preferred bidder stage. 2. In its Preliminary Results announcement, dated 25th November 2002, RM stated: '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.' 3. Recent strategic project wins announced by RM are: 4th March 2003 South Lanarkshire - RM appointed Approx. £4.5m pa preferred bidder to provide a major (over 7 years) managed ICT teaching and learning service. 17th Feb 2003 Qualifications and Curriculum £23m (over 6 years) Authority - RM to provide a Key Stage 3 ICT online assessment services for schools in England. 6th Feb 2003 Northern Ireland - RM to provide £21m (over 5 years) infrastructure software and services and computer hardware to all post primary and special needs schools in Northern Ireland. 9th Jan 2003 INDIGO - RM to develop online £4.7m continuing professional development service for the DfES that help teachers incorporate ICT into subject teaching. This information is provided by RNS The company news service from the London Stock Exchange

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