Trading Statement

Anite Group PLC
28 November 2003


Embargoed until 07.00                                   Friday, 28 November 2003

                                ANITE GROUP plc
                                        
                          Half Year Trading Statement

Anite Group plc ('Anite' or 'the Group'), the worldwide IT solutions and
services company, today announces a trading update for the six months ended 31
October 2003; highlights include:

   •overall half year performance in line with expectations, with lower
    revenues and profits due to flat markets and restructuring and other related
    costs
   •profit before tax of ongoing businesses, before goodwill amortisation and
    exceptional items is expected to be not less than £6.5m (2002: £10.8m)
   •exceptional items (included in cost of sales and operating costs) total
    £4.1m, with exceptional costs of £5.5m and credits of £1.4m
   •additional profit from closed businesses and other non-operating profit
    totalled £0.5m
   •the Group has been strongly cash generative, ahead of expectations,
    reflecting our focus on cash management:
      - £7.9m of cash earnout commitments have been paid out
      - net debt as at 31 October totalled £10.8m (30 April 2003: £16.3m)
   •property rationalisation programme will yield good benefits in the medium
    term
   •annualised overhead reductions now total around £5.5m with £2.5m expected
    to be realised in the second half following net headcount reduction of 125
   •Steve Rowley joined as the new Chief Executive on 3 November 2003
   •order intake of £95.9m slightly ahead of last year on a like for like
    basis
   •the Group intends to announce its interim results on Friday, 12 December
    2003

Commenting on the trading update, Steve Rowley, Anite's Chief Executive, stated:

'As stated at the time of my appointment, my current priority is to complete the
consolidation, integration and cost cutting work commenced by David Thorpe and
Chris Humphrey with a particular focus on invigorating our sales and marketing
activities and reviewing the opportunities and potential for the individual
businesses.

'Whilst there is still much work to be done, we have already made considerable
progress with these initiatives. Profit performance is expected to be in line
with expectations for the year as a whole but with revenue continuing to be
under pressure. Overall, the Board believes the Group is now in better shape and
is cautiously optimistic about its future prospects.'

For further information, please contact:                           www.anite.com

Anite Group plc                                                     01753 804000
Steve Rowley, Chief Executive
David Thorpe, Non-Executive Director
Christopher Humphrey, Group Finance Director
Weber Shandwick Square Mile                            020 70670700/07831 406117
Reg Hoare/Sara Musgrave

  A conference call for analysts and investors is being held today at 9.30am.
   Participants should dial 0845 245 3471. A replay will be available on the
                               following number:
                     0845 245 5205, access number 737112#.

 Print resolution images are available for the media to view and download from
                               www.vismedia.co.uk

Performance for the six months ended 31 October 2003

At the time of the Group's AGM trading update on 24 September 2003, the Board
indicated that in view of tough trading conditions, the restructuring programme
and other one off costs, together with higher development spending,
profitability in the first half would be down on the previous half year.
Performance since that time has been in line with these expectations.

Sales were down 10% year on year, to £95m; however, orders are slightly ahead of
the same period last year on a like for like basis and the Group is seeing the
benefits of its cost cutting and consolidation coming through and has been
strongly cash generative during the period.

Current Trading & Outlook

The Group's current performance is in line with our expectations for the year as
a whole with profitability strongly second half biased, as the restructuring and
other one off costs are unlikely to be repeated and the benefits of cost cutting
are now coming through strongly, but with revenue continuing to be under
pressure.

We are currently undertaking an in depth review of property rationalisation
opportunities across the Group. In the first half we have taken the opportunity
to relocate our small head office from Reading to our existing premises in
Slough where we have additional space available. As a result, we are also
relocating our Bracknell based Public Sector operations to Slough and are
putting the Bracknell freehold building on the market, although relocation costs
and an associated valuation write down will be included in the interim results.

Other significant property opportunities are being reviewed that are likely to
yield cost savings and synergies in the medium term, although they could also
lead to some associated exceptional costs in the second half.

Steve Rowley joined the Group as its new Chief Executive on 3 November. Steve
will continue the consolidation, integration and cost cutting work commenced by
David Thorpe and Christopher Humphrey during the summer, with a particular focus
on invigorating Anite's sales and marketing activities and reviewing the
opportunities and potential for the individual businesses.

Whilst there is still much work to be done, we have already made considerable
progress with these initiatives. Overall, the Board believes the Group is now in
better shape and is cautiously optimistic about its future prospects.

Other financial and operational points for the first half:

   •Included within cost of sales and operating costs:
      - redundancy costs of £2.4m
      - former Chief Executive total settlement of £0.7m
      - associated legal costs, NICs and recruitment fees of £0.3m
      - cost of relocation, depreciation alignment and property
        rationalisation £2.1m less receipt of £0.8m from former tenant
      - credits totalling £0.6m, including receipts from Dati offsetting the
        costs written off in the year ended 30 April 2003
      - overall, these costs net of credits total around £4.1m
   •additional profit from closed businesses and other non-operating profit
    totalled £0.5m
   •paid out £7.9m of cash earnouts and £8.0m of share earnout commitments
    (9.4m shares) in the first half
   •net debt lower than expected and stood at £10.8m (30 April 2003: £16.3m)
    as at 31 October 2003, with year end net debt expected to remain at similar
    levels
   •remaining earnout commitments total £11.6m in cash and £0.6m in shares,
    £2m of which is dependent on earnout targets being achieved
   •development spending has been in line with expectations at £6.4m (2002:
    £4.9m)
   • satisfactory order intake of £95.9m, with strong order backlog of £97.1m
    of which £50.6m is deliverable in the second half; strongest performances in
    Public Sector and Telecoms, with Travel and Consultancy remaining weak as
    expected


Divisional Review

The Public Sector business has been a key area of management focus during the
half year with much progress having been made in terms of restructuring and cost
cutting and resolving legacy contract issues. The underlying business trends
have continued; strong order intake and trading performance in the central
government area, and in contrast, as previously indicated, a weaker performance
in the local government applications solutions area.

Overall, Public Sector's profitability has been held back as expected by higher
development spending and as low profitability contracts are completed and other
contractual and residual issues, relating to past acquisitions, are resolved.

Pericles, our revenues and benefits product, is nearing completion with a major
release having taken place in October. The product is installed and operational
at a major reference site and users are now able to commit to full use of the
system. Interest and contract take up in e-local government is growing as we
approach the Government's 2005 target.

Travel saw flat profits on reduced turnover. Although we believe it will be some
time until our customers feel confident to increase their discretionary
spending, Travel continues to benefit from its strong market leading positions
and mission critical offerings and services. Cost cutting has continued in the
first half and our major customers continue to trade normally.

Telecoms saw improved profits on lower turnover reflecting the tough operating
environment and delays to 3G spending previously referred to. Whilst it is too
early to suggest that a pick up is imminent, as indicated at the time of the
AGM, there have been some encouraging order intake signs in both 3G and 2/2.5G.

During the period some important milestones were achieved with the opening of
sales offices in Korea and Taiwan and a switch from Racal to Agilent's hardware
platform, and despite some short-term disruption from this change, orders have
been received for the new systems with first deliveries expected in the new
year. We have established an offshore facility in Bangalore, to provide our 2G
solutions maintenance and development services.

In International, as expected, sales, orders, margins and profits have fallen
against a background of continuing pricing pressure and limited opportunities in
European markets, further impacted by significantly reduced profits at Anite
Finance (formerly Parsec). Although the overall performance of International
continues to be creditable in these circumstances, there are no signs of
improvement in market conditions.

                                    - Ends -




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