Trading Statement

QinetiQ Group plc
28 September 2007


QinetiQ Group plc
28 September 2007

Pre Close Trading Update

QinetiQ Group plc ('QinetiQ' or 'the Group'), the international defence and 
security technology company, today issues the following trading statement in
respect of the six months ending 30 September 2007. The Group's interim results
will be announced on 28 November 2007.

The Board confirms that the trading outlook for the year remains in line with
that described in the Interim Management Statement issued to coincide with the
Group's Annual General Meeting on 26 July 2007.

A key element of the Group's stated strategy is to build its footprint in the
North American market and the Board is pleased to confirm that this business has
continued to grow through very strong organic trading performance in the period
supplemented by further acquisitions. The EMEA (Europe, Middle East and
Australasia) sector continues to reposition itself to exploit its core UK
defence technology platform in relevant defence markets globally.

QNA
QNA (QinetiQ North America) has seen continued strong order levels across all
parts of the business driving a very strong trading performance, notwithstanding
the adverse translation impact of a 7% weakening of the US dollar compared to
sterling from the previous half year.

The Systems Engineering & Technical Assistance business has successfully
retained in competition several important five year contracts worth in excess of
$120m over the contract lives and the Technology business has received over
$100m of further funding for Talon robots and spares, together with the first
sales of a small number of SWORDS robots, the armed variant of the platform.
Talon robot shipments have continued at the strong levels that were achieved in
the second half of last year supplemented by strong spares sales.

Additionally QNA was awarded the right to participate in the Alliant contract,
the US's largest government-wide acquisition contract. The Alliant contract is a
10-year indefinite delivery, indefinite quantity contract with a ceiling of $50
billion which enables US government agencies and military services to purchase
innovative IT solutions.

Integration of the North American acquisitions is progressing well and the Group
continues to see a healthy pipeline of further acquisition opportunities in
North America. Additionally, the Group has successfully completed four
acquisitions in North America this financial year, together with the acquisition
of Analex at the end of the prior year, and the initial trading from these
businesses is positive.

EMEA
Overall, the EMEA business has traded in line with the comparative period in the
previous year, with good progress being made on repositioning the business at
the sub-sector level. In prior years, a significantly greater proportion of UK
profit has been earned in the second half and this trend will be repeated in the
current year. As part of the ongoing process to shape the EMEA sector the Group
is looking to grow its capabilities and expand its geographic footprint beyond
the UK into other international defence markets outside North America, initially
in Australia and selected Middle and Far East markets.

Negotiations with the MOD on Package 1 of the Defence Training Rationalisation
Programme continue to make good progress and the target remains to agree the
final scope in 2007, with financial close expected 12 to 18 months thereafter. 
Discussions continue with the MOD over the affordability of Package 2.

The Board is also pleased to confirm that the Group and the trade unions have
reached agreement to put to members of the defined benefit section proposed
future changes to the core terms of the QinetiQ Group pension scheme as detailed
below.

Ventures
The creation of a new technology venture fund with Coller Capital (QinetiQ
Ventures LP) to accelerate the development and realisation of seven of its more
mature venture investments was successfully completed on 3 August 2007. One of
the fund's investments, Metalysis, a leading technology business for the global
specialty metals industry, has completed a £13m funding round to support it in
taking three product lines to commercial production using its patented
technologies.

Among the retained ventures businesses we continue to receive positive feedback
on the trial installations of Tarsier at London Heathrow and Providence, Rhode
Island airports and the development of the day and night vision camera to
supplement the existing system is progressing with an expected demonstration
system due to be installed at London Heathrow in the third quarter of the
financial year. As previously indicated, the level of QinetiQ revenue investment
in the retained ventures is expected to be at a higher level than in the prior
year.

Cash flow, tax rates and pension
Underlying cash conversion in the business remains strong and has been
supplemented in the first half by the unwind of the unusually high MOD related
working capital at the end of the prior year. During the period the company has
provided some £12m of funding to the trustees of its employee share scheme trust
to allow them to purchase shares in the company to hedge outstanding share
options and other share based awards that have been made since IPO.

Following the changes to UK tax rates in the 2007 budget and further progress on
the Group's tax filings, the underlying effective tax rate for the year is
expected to be below that in the prior year.

Core changes to the defined benefit section include raising the normal pension
age from 60 to 65 and a range of options that allow the employee to maintain
future benefit accrual at their current levels, based on a higher rate of
employee contribution, or to move to a lower accrual rate and capped pension
increases, based on current employee contribution levels. The changes do not
affect past service obligations and the Group is not making any additional cash
funding to the scheme as part of these arrangements. Future cost increases will
be dealt with through a risk sharing agreement.

Outlook
We believe that the execution of the Group's stated strategy is bearing fruit
and we continue to look forward to the remainder of the current year with
confidence.

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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