Trading Statement

Evolution Group PLC
30 January 2003


30 January 2003

            The Evolution Group Plc ("Evolution Group", the "Group")

                                 Trading update

Evolution Group, the AIM listed investment bank and retail fund management
group, today issues a trading update.


Investment banking

Following the completion of the acquisition of Beeson Gregory Group in July
2002, we were pleased  to be able to announce the successful integration of the
two businesses in our interim statement. We have continued this process during
the remainder of the year to ensure the creation of a culture and structure to
realise the goal of creating a highly profitable investment banking franchise.

Our financial performance in the final four months of the year has seen revenues
exceed the targets set for the combined business. This income has been earned
across the whole firm with strong performances from corporate finance, sales and
trading. Overall, in this four month period, Evolution Beeson Gregory has made a
profit against a background of very difficult market conditions.

We have continued to focus on cost management and have made significant
reductions in our headcount, from 128 people when the deal was completed to 84
at the year end, whilst eliminating other overhead expenses. This has resulted
in our cost of income in the period  now being close to 60%,  a structure which
we believe will allow us to operate profitably going forward.

We have won a significant number of new corporate clients in the period since
the merger demonstrating success across a number of sectors and market
capitalisations. On this basis our future income quality is high, with a strong
retainer income base of over 25% of projected operating costs, and the
opportunity to secure corporate transaction fees as well as primary and
secondary commissions.

Private Client Stockbroking and Fund Management

Christows has experienced the effects of extremely difficult market conditions
in the retail stockbroking sector. Declining equity market valuations have a
direct impact upon the level of management fees earned from our discretionary
asset management products. Against this background we have continued to strive
to win new funds under management via our sales and marketing efforts which have
been successful in gaining £54 million of new funds under management during the
full year. In conjunction with this strategy, we launched a multi-manager
portfolio service which provides discretionary management across the unitised
and exchange traded fund asset classes for individuals with amounts greater than
£25,000 to invest. This extends our offering to a significantly wider potential
client base and, in its opening months, has been extremely well received by end
and intermediary customers.

Obviously, in the current economic climate, cost management is paramount. The
steps we took in 2001 to realign the cost base by reducing headcount and other
overheads and eliminating non-core activities, have resulted in significant
savings in 2002.

IP2IPO

The second half of 2002 saw an acceleration of progress made in the Group's
Intellectual Property subsidiary. Three further spin-outs, Glycoform, Capsant
Neurotechnologies and Southampton Polypeptides, were completed in the period.
Furthermore, ACTIVE em, an earlier spin-out from Southampton University,
achieved a successful second round of funding, raising £2.2 million. The value
of IP2IPO's two partnerships with Oxford University's Chemistry department and
The University of Southampton is underlined by these further activities and we
believe that the Company will contribute significantly to the Group's value.

Exceptional Items

There will be one off exceptional charges in the period ended 31 December 2002
relating to the merger and restructuring of the Beeson Gregory Group. In
addition, in line with the Evolution Group's policy regarding valuations of
unquoted investments, there are significant exceptional charges related to the
revaluation of Beeson Gregory's technology investments.

Outlook

Our two operating businesses have begun 2003 very well placed in terms of having
the appropriate strategy to increase revenues and a rationalised cost structure
to enable a profitable performance. The Board remains committed to maintaining
the Group's strong balance sheet and substantial cash position. Clearly market
conditions remain extremely difficult but your Board will undertake everything
required to ensure the ongoing performance of the operating businesses and to
realise maximum potential from our other strategic assets.

Board Changes

I have decided, following the successful completion of the integration of Beeson
Gregory and Evolution, to stand down as Chairman of the Evolution Group Plc,
with effect from today.  This will enable me to take up further non-executive
directorships and pursue other interests. I am proud to have led the business of
Beeson Gregory, which was founded in 1989, and has over the last fourteen years
established itself as one of the largest corporate broking businesses in London.
In 2002 it merged with the Evolution Group at which point Alex Snow became
Chief Executive of the merged group. I will continue to serve as a non-executive
director of the University spin out company, IP2IPO Group Limited.

I am pleased to announce that Richard Griffiths, currently a director of the
Group, has today been appointed by the Board as Chairman of the Evolution Group.

Alex Snow, Chief Executive, said: "The Board would like to thank Andrew Beeson
for all his efforts and the contribution he has made to ensuring the success of
this merger."


Andrew Beeson
Chairman



For further information please contact:

The Evolution Group Plc                                        020 7488 4040
Alex Snow, Chief Executive
Graeme Dell, Finance Director

Hogarth Partnership Limited                                    020 7357 9477
Andrew Jaques / Georgina Briscoe


For further information on the Evolution Group Plc, please go to
www.evolution-group.com.


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