Trading Statement

Games Workshop Group PLC
03 May 2007


                  TRADING STATEMENT AND COST REDUCTION PROGRAMME

TRADING

Since our interim announcement and trading statement on 5 January 2007 the Group
has continued to make sales progress in our more established markets (UK and
Australia), with further evidence of promising developments in our US business.
However, in Continental Europe we have continued to see sales declines,
particularly in Germany and France. Management changes have recently been made
in this area.

Consequently, our overall sales performance, particularly over the recent
trading period, has not been as strong as expected and therefore profits are
unlikely to meet market expectations for the year to May 2007.

The Board expects to announce the Group's 2007 preliminary results on 31 July
2007.

COST REDUCTION PROGRAMME

In view of the Group's current trading performance the Board has decided to
accelerate and intensify its programme of cost reduction in the business. During
the next six months this programme will include:

*  The closure of 35 loss-making stores
*  The reorganisation of warehousing and manufacturing activities
*  The centralisation of various sales support and back office activities

We expect this programme to result in a reduction of full time headcount of over
10% and to generate annualised cost savings of some £7m.

These changes will focus on the removal of administrative and back office
activities from our sales businesses, leaving them better equipped to
concentrate on and deliver sales growth.

The estimated cost of this programme is approximately £6m, which will be taken
as an exceptional charge in the current financial year.

CONTINUED INVESTMENT IN THE BUSINESS AND DIVIDEND

In addition to this essential short term revenue investment of £6m to restore
and strengthen the future profitability of the business, Games Workshop will
continue to invest in opening new stores in growth areas and in other long term
capital projects in the normal course of business. This reflects the Board's
continued confidence in the long term growth credentials of the business.

In order to retain funding flexibility and to avoid placing excessive short term
strain on the Group's finances, the Board does not intend recommending the
payment of a final dividend for the current year.

PROSPECTS

The measures set out above are designed to address short term issues. The Board
remains confident in the long term future of the business and continues to focus
on growing the Games Workshop Hobby throughout the world.


For further information, please contact:

Games Workshop Group PLC                                     Tel: [phone]
Tom Kirby, Chairman and Chief Executive                           
Michael Sherwin, Finance Director                                 

Rawlings Financial PR Limited                                Tel: [phone]
John Rawlings 



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