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SBS Group (SBG)

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Tuesday 27 February, 2001

SBS Group

Trading Statement

27 February 2001

                     SBS Group plc ('SBS' or 'the Group')

                                Trading Update

SBS Group plc ('SBS' or 'the Group') announces that it expects profits for the
year to August 2001 will be lower than market expectations.

This is due to:

*         The downturn in the US economy and in particular the US telecoms
sector which has had a significant impact on the Group's activities in the US.
Conditions in the US are in marked contrast to the year to August 2000 when
the Group's US operations were performing very strongly; and

*         Two of the Group's significant accounts in the US, Web House Club
and Perfect Yard Sale Inc (licencees of's business model)
unexpectedly ceased operations in October 2000 resulting in the early
termination of 12% of the Group's US contractors.    The Group was therefore
obliged to negotiate a settlement of its outstanding invoices which resulted
in a reduction of not more than $100,000 in its gross margin on this business.

Trading in Europe is in line with directors' expectations.  UK trading has
continued to strengthen since summer 2000 and the UK is now trading ahead of
directors' original expectations. In the six months since August 2000 the
number of contractors billed per month has increased by 16%. The directors
expect that trading in the UK will continue to be strong. Unfortunately the
strong trading in the UK will not be sufficient to offset the difficulties in
the US and the directors expect that profits for the year to August 2001 will
be materially lower than market expectations.

The directors will continue to keep the trading situation under close review
and will be actively pursuing strategies to improve the trading performance of
the Group.

SBS intends to report its interim results for the six months ended 28 February
2001, on 30 April 2001.

For further enquiries, please contact:

SBS Group plc                                                     020 7420 6700
Gary Jones, Chief Executive
Phil Holt, Chief Operating Officer

Golin/Harris Ludgate                                              020 7324 8888
Richard Hews


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