Trading Statement

Ideal Shopping Direct PLC
17 December 2003


                           Ideal Shopping Direct plc


                               Trading Statement


On September 25th 2003, the Company reported that the trading results for the
current year were expected to be substantially below market forecasts due to
lower than projected sales coupled with costs of strategic actions undertaken to
underpin key areas of our operation.

Because of the high level of fixed costs associated with running our live
24-hour shopping channel, we are very sensitive to relatively small movements in
turnover. However, this operational gearing does benefit the Company once sales
pass the break-even mark. As previously reported, the Company did not achieve a
satisfactory level of sales in July and August. At the interim stage it was
highlighted that we are general retailers using television as our shop sales
outlet and subject to the same vagaries as the general retail market. The
Company has, however, traded profitably despite what has been a challenging and
relatively difficult retail environment in September, October, November and the
first two weeks of December. Despite the positive progress, however, the
cumulative losses reported for the first six months announced at the interim
stage, taken together with additional losses suffered in July and August, will
not be fully compensated in the current year by the recent improved performance.

The Company feels that it is prudent to warn that current market expectations
remain too high for this financial year and although the year has not yet ended,
the Company's internal forecasts anticipate that it will report a significant
trading loss for the year that will end on the 31st December 2003. The Company
continues to negotiate with its insurers to settle the final part of its
insurance claim in respect of the devastating fire that it suffered in March
2001 and receipts from this final settlement could offset such trading losses.

Our interim statement also alerted the market to a variety of operational
challenges and weaknesses that the Company's progress in driving turnover growth
revealed during the first six months of the year. Since the interims,
considerable management energy has been expended in addressing the issues
highlighted, resulting in a significant amount of restructuring within the
business to provide a firm foundation for the business to be able to generate
the levels of profitability that the Board believes the Company is able to
achieve.

Most notably, our product sourcing and buying department, effectively the
fundamental heart of our operation, has been completely reshaped, bolstered and
refocused. A new highly experienced Head of Buying has been recruited and a
major campaign to recruit a number of additional experienced buyers is still
ongoing. A number of these buyers have already joined us and we anticipate more
will join us at the start of the New Year. It is believed that our investment in
this crucial area will drive our growing business and improve profitability in
2004.

In addition, we have completely reviewed our warehouse operations with the
result that there are significant changes currently being implemented to improve
both the calibre of our general warehouse management and critically many of our
working practices by improving both processes and discipline, leading to
enhancing our productivity tremendously. We are currently at an advanced stage
of recruiting a highly experienced new Warehouse & Logistics Manager. Investors
should anticipate confirmation of the new appointment at the time we publish our
year-end results.

Our stock levels highlighted in our interim statement were simply too high given
our sales levels and our policy of buying predominantly on a sale or return
basis from our suppliers. We have targeted this area for management attention
and I am pleased to report positive progress is being made to reduce stocks
dramatically by the year-end and turn an unacceptably high level of stock back
into cash. Clearly it is a key management objective to manage this critical
issue going forward.

The challenges and the steep learning curve attributed to moving our call centre
from Peterborough to India have now largely been met and we have now begun to
see the fruits of this phase of our development by steadily improving levels of
service to our customers and a significant reduction in the levels of customer
churn we experienced during the initial stages of the transfer. We continue to
raise our standards and expectations of this important customer facing part of
our operation.

In summary, much has been accomplished in recent months to strengthen and build
our senior management team, which has been significantly enhanced by the
recruitment of a highly experienced and focused group of new talent. Whilst this
task is still ongoing, we anticipate being at full strength by the end of the
first quarter of 2004.

Lastly we have also expended a great deal of both time and energy in attempting
to strengthen our Non-Executive Board as a matter of priority. This process of
identifying and recruiting the right calibre of individual to help the Company
to realise its objectives is proving difficult but is an on-going priority.

The Company currently anticipates that it will report its results for the year
ended 31st December 2003 in late March 2004.

PAUL C WRIGHT
CHAIRMAN & CHIEF EXECUTIVE


Enquiries:

IKON Associates
Adrian Shaw                                Tel:       [phone]
                                           Mobile:    [phone]
                                           E-mail:    [e-mail]


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