AGM Statement and IMS

QinetiQ Group plc
26 July 2007


QinetiQ Group plc
26 July 2007

Annual General Meeting and Interim Management Statement

QinetiQ Group plc ('QinetiQ'), the international defence and security technology
company, is today issuing the following Interim Management Statement, as
required by the UKLA's Disclosure and Transparency Rules, which covers the
period from 1 April 2007 to 25 July 2007. This coincides with its Annual General
Meeting which is taking place at 2.00pm today, 26 July 2007, in London. At the
meeting the Chairman of QinetiQ, Sir John Chisholm, will make the following
statement:

Trading and financial position
The current year has started well with first quarter results in line with the
Board's expectations. The trading outlook remains in line with that described in
the Group's 2007 Report and Accounts published in June. The EMEA (Europe Middle
East and Australia) sector is well positioned to exploit its core UK defence
technology platform while the growth opportunities remain strong for QinetiQ
North America, mitigating the adverse translation impact of the continuing
weakness in the US dollar.

Order levels across the business remain robust. Notable wins in EMEA include the
sale of the Quadrant ADS-B (Automatic Dependent Surveillance - Broadcast) air
traffic surveillance ground station to General Civil Aviation Authority of the
United Arab Emirates and a £5.5m contract from the UK MOD to use the Tornado F3
as the alternative test platform to the Typhoon to support trials for the Beyond
Visual Range Air to Air Missile (BVRAAM - Meteor). Negotiations with the MOD on
Package 1 of the Defence Training Rationalisation Programme have made good
progress and the target remains to agree the final scope in 2007, with financial
close expected 12 to 18 months thereafter, while discussions continue with the
MOD over the affordability of Package 2.

QinetiQ North America has seen continued strong order levels across all parts of
the business, with multiple contract awards from the Department of Homeland
Security for our IT Services business particularly notable. Significant
additional orders for TALON robots have been secured, the largest of which is an
$86.1m extension to the existing Naval Air Warfare Training Systems Division
order bringing the revised order value to $150m.

The balance sheet remains strong and there have been no significant changes in
the financial position of the Group since the publication of the its 2007 Report
and Accounts for the year ended 31 March 2007 other than in respect of the
acquisitions completed since the year-end and the creation of the Venture fund
as noted below. As previously reported, the £20m temporary increase in MOD
related working capital has reversed in the first quarter.

Acquisitions
The Group has successfully completed four acquisitions this financial year;

-          ITS Corporation, an IT services company, completed in April 2007 for
an initial consideration of £40.8m;
-          Two robotics technology companies, Applied Perception Inc. and
Automatika Inc. were acquired in May 2007 for consideration of £3.1m each;
-          3H Technology Corporation, an IT services company, completed in June
2007 for consideration of £25.2m.

Integration of our North American acquisitions is progressing well and we
continue to see a healthy pipeline of acquisition opportunities in North America
and in other geographies.

Venture fund
On 27 June 2007 the Group announced the creation of a new technology venture
fund (QinetiQ Ventures LP) to accelerate the development and realisation of
seven of its more mature venture investments. The fund has been launched by
QinetiQ and Coller Capital, a leading global investor in corporate venture
assets, and will be structured as a Limited Partnership ('LP') managed by an
independent investment manager. We have transferred into the fund assets valued
at £40m. QinetiQ and Coller Capital will each contribute up to £20m of follow-on
funding to accelerate development of the fund's portfolio companies. Depending
on the performance of the fund, QinetiQ will own up to 75 per cent of future
economic value. This transaction is expected to complete shortly.
Outlook
We remain optimistic about the outlook for the current year as a whole which 
continues to progress in line with our earlier expectations and the Group
remains well positioned to realise the growing potential of its markets.


Notes to Editors

About QinetiQ:
QinetiQ (pronounced ki net ik as in 'kinetic energy') is a leading international
defence and security technology business that was formed in July 2001 from the
UK Government's Defence Evaluation & Research Agency (DERA). QinetiQ has 
approximately 13,500 employees, who deliver technology-based services and
exploit QinetiQ's strengths in technology research by selling systems solutions,
products and licences to government and commercial customers in a spectrum of 
defence, security and related commercial markets.

In February 2006, QinetiQ Group plc was listed on the London Stock Exchange
(main market) and joined the FTSE250 in June 2006.  In the year to 31 March 2007,
QinetiQ delivered a 17.4 per cent rise in underlying operating profit before 
tax to £106.0m on turnover which rose by 9.3 per cent to £1,149.5m.

For further information see www.QinetiQ.com

Contacts:
QinetiQ Media Relations: Nicky Louth-Davies [phone]
QinetiQ Investor Relations: Adrian Colman [phone]

Disclaimer
All statements other than statements of historical fact included in this
document, including, without limitation, those regarding the financial
condition, results, operations and businesses of QinetiQ and its strategy, plans
and objectives and the markets and economies in which it operates, are
forward-looking statements. Such forward-looking statements, which reflect
management's assumptions made on the basis of information available to it at
this time, involve known and unknown risks, uncertainties and other important
factors which could cause the actual results, performance or achievements of
QinetiQ or the markets and economies in which QinetiQ operates to be materially
different from future results, performance or achievements expressed or implied
by such forward-looking statements. Nothing in this document should be regarded
as a profit forecast.



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