Trading Statement

MSW Technology PLC 19 May 2000 MSW TECHNOLOGY PLC ('MSW' or 'the Company') MSW announces today that delays in completing major contracts will result in the Company not trading profitably by 31 May 2000, the end of its current financial year. However the cost saving programme has been highly successful and break-even is anticipated within the first half of the year to 31 May 2001. The Company has signed a contract with Spring IT Solutions Limited, a subsidiary of Spring Group PLC, to market jointly MSW products to the IT departments of major UK corporations. The first full sea trials of 'Souls on Board', the Company's access control system for the shipping industry have now been successfully completed. The new product is fully compliant with government regulations which came into force on 1st January 2000. It is being rolled out onto other ships in the same fleet and actively reviewed by a number of other ship operators. MSW is also pleased to announce that a contract has been awarded by the US Department of Defense for the supply of MSW 'MAPS' manpower planning software through its US business partner CALIBRE Systems, Inc. The initial work will establish a pilot programme within the US Defense Community to demonstrate the capabilities of the MSW software. Successful completion of this pilot programme may result in its wider adoption by other US government agencies. The Company has reached a settlement with its former Managing Director. This has no significant impact on the Company's financial position. For further information on the above, please contact Robert Drummond on (020) 7462 3300
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