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ISA International (ISA)

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Wednesday 20 October, 1999

ISA International

Results Adversely Affected by Consolidation

ISA INTERNATIONAL PLC
20 October 1999

                            
                  ISA INTERNATIONAL plc
                 ('ISA' or 'the Group')
                            
                     PROGRESS REPORT

ISA's  interim results statement on 3 September indicated
that  the  results for the full year would  be  adversely
affected  by costs relating to the consolidation  of  our
European  operations as well as the costs of  integration
of  John  Heath & Co Ltd ('Heath') with the  Kaye  Office
Supplies Ltd group ('Kaye'). The Board is now in a better
position to quantify these non-recurring charges.

The  non-recurring  costs  will be  approximately  £3.8m,
relating    to    senior   management   and   operational
rationalisation, and the Group's share of  the  costs  of
integrating Heath with Kaye.

During  the  current  year  the  Group  has  refined  its
management  structure, which now operates on  a  Regional
rather  than individual country basis. The Board believes
that  this  more  focused structure will  enable  tighter
control and faster response times to business issues than
has previously been the case.

However,  there  has  been some temporary  disruption  to
sales volumes in Continental Europe, due to the depth  of
the senior management reorganisation in France and as  an
anticipated   consequence  of  the  move  to   outsourced
warehousing and logistics in Germany.

The  Board are encouraged by the current level  of  gross
margin  being  achieved and anticipate that the  improved
margins in the continuing Group from the 1st half will be
maintained.  Underlying performance for the  Group  as  a
whole in the 2nd half of the year is expected to be ahead
of the level achieved in the 1st half.



For further information, please contact:

ISA International plc
David Heap, Chairman and Chief Executive    0181 614 7814
Mike Murphy, Finance Director               01274 306 787

Square Mile Communications                  0171 601 1000
Susan Ellis or Louise Robson


                                                                                                                                                                                                                                     

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