Trading Update

Torex Retail PLC
06 January 2005



6 January 2005



                                TOREX RETAIL PLC

                                 TRADING UPDATE



Torex Retail plc ('Torex Retail' or 'the Group'), the UK's market leader in
retail IT solutions, is pleased to announce that following the close of its year
end on 31 December 2004, it expects to report pre-tax profits ahead of
expectations when it announces its preliminary results in February 2005.



This reflects strong trading from all areas of the Group. The success of the
Group in the second half of 2004 is based upon sales of Group software products
with associated services, particularly with new contract wins for its market
leading EpoS product LUCAS. This has reinforced the changing business model
experienced in the first half with increased software licence sales and lower
hardware revenues contributing to improved operating margins.  In addition a
tight control on working capital has resulted in a strong cash inflow from
operating activities.



The integration of Alphameric Retail has commenced and initial findings are
consistent with pre-acquisition due diligence and the strategic rationale for
the transaction.  In addition, new opportunities are being identified which is
very encouraging for 2005 and beyond.



Rob Loosemore, Chairman of Torex Retail plc, commented:



'I am delighted with the progress we have made in our first year as a public
company both in terms of financial performance and strategic development.
Strong trading, particularly in the second half, together with the acquisition
of Alphameric's Retail Division provides a tremendous platform and momentum for
organic growth in 2005 and beyond.  The pre-tax profits will be ahead of
expectations which continues the long established tradition of the senior
management team, of not only doing what we say we will do but exceeding it.'




Enquiries:

Torex Retail plc                                    Citigate Dewe Rogerson

Mark Pearman, Chief Executive                       Ginny Pulbrook / Seb Hoyle / Freida Moore

Richard Thompson, Finance Director                  Telephone: [phone]

Telephone: [phone]















Notes to Editors:

Torex Retail, a leading European retail solutions business, floated on AIM in
March 2004.  The business is an independent supplier of electronic point of sale
('EPOS') solutions and services and productivity tools to high street,
convenience and petroleum retailers with an installed base of some 50,000 EPOS
licences across Europe.  It has a broad base of blue-chip clients and employs
700 staff in UK, Germany, Belgium, Holland and Eire.




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