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Warthog PLC (WHOG)

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Friday 28 November, 2003

Warthog PLC

Trading Statement

Warthog PLC
28 November 2003


28th November 2003

                                  WARTHOG PLC

                                 TRADING UPDATE

Warthog plc ('Warthog' or 'the Company') today announces a trading update ahead
of its Interim results.

The Board of Warthog now believes that it is likely that the Company's results
for the six months ended 30 September 2003, to be announced in late December,
will be below market expectations and that the Company will report a first half
loss in the region of £2 million. It is also expected that further losses will
be incurred in the full year. The reasons for the anticipated loss include the
failure of a number of smaller publishers, resulting in the non-completion of
contracts in which Warthog had already invested development funds, delays in
signing new development contracts and the performance of the US dollar since
signing a number of contracts, leading to further exchange rate losses.

Accordingly, Warthog has taken steps to reduce its corporate and personnel
costbase whilst being concerned to protect the valuable talent upon whose
expertise the future of the business is based. In order to balance the risks
associated with the upfront funding of games development, the Board of Warthog
believes that the Company should develop closer working partnerships with the
leading industry holders of intellectual property rights, with which it already
enjoys strong relationships, and is pursuing opportunities to this end. The
Board also recognises the need to strengthen its balance sheet in the near
future and to provide funds for the establishment of a Los Angeles studio in the
United States. The latter is regarded as essential, given the West Coast
geographical focus of the games industry and to consolidate Warthog's existing
studio relationships. Ian Grieve, Commercial Director, has agreed to relocate to
the United States and as a consequence of his posting has stepped down from the
main Board of Warthog plc with immediate effect.


Enquiries:

Andrew Gething
Warthog plc 0161 608 1200

David Simonson/ Kirsty Black
Merlin Financial 0207 606 1244



                      This information is provided by RNS
            The company news service from the London Stock Exchange
                                        

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