Trading Statement

Anite Group PLC
28 May 2004


Friday, 28 May 2004

                                ANITE GROUP plc
                          Full Year Trading Statement

Anite Group plc ('Anite' or 'the Group'), the worldwide IT solutions and
services company, today announces a trading update for the year ended 30 April
2004; highlights include:

   •underlying trading before exceptional items in line with expectations
   •underlying second half trading ahead of same period in 2002/3 and first
    half of 2003/4; Public Sector returned to profit in the second half
   •additional provisions for onerous loss making contracts:
       •new provision of c.£4m booked against Pericles' development to be
        utilised over next 18 months
       •additional provision of c.£10m against the State of Victoria
        development contract making a total provision of c.£12.5m of which c.£4m
        has been utilised; remainder will be utilised over the next 4 years
   •greater second half restructuring costs than expected:
       •restructuring and other exceptional operating costs for the full year
        c.£6m (first half: £4.1m)
       •annualised overhead reductions achieved in excess of £6m
   •resolution of historic disposal issues adds post operating exceptional
    credits of £5.5m
   •the Group has been strongly cash generative, ahead of expectations:
       •£11.0m of cash earnout commitments have been paid out in the year
       •£3.0m of one off cash receipts
       •net cash as at 30 April 2004 £6.6m (31 Oct 2003: net debt £10.8m)
   •order intake of £206m up 4% compared to last year giving book to bill
    ratio of 1.1
   •the Group intends to announce its preliminary results in mid/late July
   •Non Executive Board changes announced separately today
   •Board remains cautiously optimistic about Anite's future prospects

N.B. Financial performance of continuing businesses stated before goodwill

Commenting on the trading update, Steve Rowley, Anite's Chief Executive, stated:

'We have made considerable progress with the consolidation, integration and cost
cutting initiatives commenced last year as well as eliminating legacy contract
issues. Our focus on invigorating our sales and marketing activities and
reviewing the opportunities and potential for the individual businesses is
beginning to deliver improvements with a growing order book and an evolving
strategy.

'Most of our businesses are now performing satisfactorily and the recovery in
Public Sector continues in line with plan excluding the State of Victoria
contract. As a result the Board remains cautiously optimistic about Anite's
future prospects.'



For further information, please contact:                          www.anite.com

Anite Group plc                                                    01753 804000
Steve Rowley, Chief Executive
Christopher Humphrey, Group Finance Director

Smithfield                                           020 7360 4900/07831 406117
Reg Hoare/Tehsin Nayani




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Second Half Performance

At the time of the Group's interim results, the Board indicated that second half
performance was likely to improve compared to the first half albeit with
revenues still under pressure. Trading has been in line with this guidance,
whereas cash management has been well ahead of our expectations after earnout
payments, in part benefiting from one off credits and other working capital
improvements.

Restructuring and other one off costs are now expected to be substantially
higher principally due to provisions made against both Pericles and the State of
Victoria contract. The benefits of cost cutting are coming through strongly as
anticipated and order intake has begun to improve in many parts of the Group.

Current Trading & Outlook

An update on trading performance in the current financial year, commenced 1 May
2004, will be provided at the time of the preliminary results in July. However,
the Group has entered the year with an improving order book and a lower cost
base (and lower development spending), supported by its strong cash flow, a
strengthening balance sheet and a business that is in much better shape. Most of
our businesses are now performing satisfactorily and the recovery in Public
Sector continues in line with plan. As a result the Board remains cautiously
optimistic about Anite's future prospects.

Steve Rowley, the Group's new chief executive, appointed in November 2003, is
making good progress invigorating sales and marketing activities and reviewing
the opportunities and potential for the individual businesses. This is beginning
to deliver improvements with a growing order book and an evolving strategy.
Management changes have been made at divisional level and the Public Sector
business has been streamlined into three market focused lines of business,
Health & Social Care, Regional & Local Government, and Enforcement & Security,
with a further headcount reduction of 20 implemented in April 2004 expected to
deliver additional costs savings.

An update on a strategic review will be provided in July, by which time
implementation is expected to be under way.

Other financial and operational points for the year as whole:

   •exceptional items

Before operating results                                            £m

Reported at 31 October 2003                                        4.1
Additional redundancy costs                                        1.1
Additional property rationalisation                                0.5
Provision for onerous contracts                                   14.0
Total exceptional items impacting operating profit before         19.7
goodwill

After operating results

Loss on disposal of Anite Benelux                                  1.1
Forex gain on overseas financing - charged to net finance costs   (1.1)
Consideration received and provisions no longer required for
previously closed businesses                                      (5.5)
Total exceptional credits                                         (5.5)

       •net cash/(net debt):

                                Apr 04          Oct 03          Apr 03
Net cash (borrowings)             14.2            (1.4)           (3.3)
Finance leases                    (0.9)           (1.4)           (1.9)
Loan notes                        (6.7)           (8.0)          (11.1)
Net cash/(net debt)                6.6           (10.8)          (16.3)

   •paid out £3.1m of cash earnouts and £0.2m of share earnout commitments in
    the second half, making £11.0m of cash earnouts and £8.2m of share earnout
    settlements for the year as a whole
   •issued 11.4m shares during the year in settlement of earnout and option/
    SAYE exercises. The total number of shares in issue at 30 April 2004 was
    351,893,941
   •remaining earnout payments total £8.2m in cash and £0.4m in shares, of
    which £1.0m is dependent on earnout targets being achieved
   •development spending has been in line with expectations for the year as
    whole at £11.8m (2003: £10.2m)
   •satisfactory order intake of £206m, up 4% compared to last year on a like
    for like basis, with strong order backlog of £111m and overall book to bill
    ratio of 1.1

Board Changes

Progress is being made in terms of the Group's succession planning, with the
appointment of new non-executive directors a priority. We have announced today
separately the appointment of Peter Bertram, currently non-Executive Chairman of
AttentiV Systems Group plc and formerly Chief Executive of Azlan Group plc
between 1998-2003, and that David Thorpe is standing down on 1st August 2004,
due to a significant new commitment as Chairman of another organisation.

Divisional Review

After showing a loss in the first half, Public Sector's performance has improved
and it was profitable in the second half (including Pericles and State of
Victoria). The division has shown a small loss in the year. It continues to be a
key area of management focus as evidenced by the divisional management changes,
the restructuring into three business streams and further headcount reductions
stated above.

Pericles, our revenues and benefits product, has been accepted by one major
customer (see separate press release issued today) with two other major
installations nearing completion. However we have incurred additional costs
relating to schedule delays and additional development costs, as a result of
which the Group has made a provision of c.£4m.

Given delays and significant unforeseen additional development costs following a
review undertaken by the new management team, we have booked a provision of
c.£10m against the State of Victoria development contract, adding to the
existing provision of £2.5m making a total of c.£12.5m, of which c.£4m has been
utilised to date. The remaining provision will be utilised over the next four
years.

The underlying Public Sector business is now performing much better and order
intake on a like for like basis is ahead of last year.

Travel continues to perform very well in a difficult trading environment, with
strong cost control sustaining good profitability. Order intake has also begun
improving, and just prior to the financial year-end, a €4m contract was signed
with Irish Ferries, Ireland's leading ferry company, which will see them
replacing their existing reservation system with Anite's state-of-the-art
solution.

Telecoms performed strongly during the year despite the tough operating
environment for the network operators and equipment manufacturers, with
excellent margins being achieved on marginally lower sales, benefiting from
strong cost control.

Prospects for the new financial year are improving as evidenced by 2/2.5 and 3G
order intake, with a first contract recently awarded for 3.5G. New sales offices
have been opened during the last year in San Diego, Korea and Taiwan and we have
recently committed to additional development spend to take advantage of this
modestly improving outlook and sales opportunities with our growing, global Tier
1 client base.

In International, as expected, market conditions remained tough throughout the
year, especially in Germany, resulting in sales, margins and profits falling as
expected.

Following the interim results, we announced in December the disposal of Anite
Benelux, a Dutch based IT consultancy, reflecting Anite's intention to dispose
of certain small peripheral businesses. Benelux's results will be shown as a
discontinued activity in Anite's preliminary results. It employed 164 staff out
of a total of 728 in Anite's International division.

In the current financial year, International's trading remains tough with a flat
order book, although France is now performing better compared to last year
largely offsetting the continued weakness in Germany.

                                      - Ends -



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