Trading Update

Manpower Software PLC 28 June 2006 MANPOWER SOFTWARE PLC (the "Company") TRADING UPDATE The Directors of Manpower Software plc announce today that, following their initial review of the results for the year ended 31 May 2006, turnover for the year is likely to be about £4.3 million from which the Company will derive a loss before tax expected to be in the range £1.7 million to £1.8 million. The shortfall in turnover and the extent of the loss compared to both budget and stock market expectations reflects delays in signing key contracts, each containing a significant licence fee component. The Directors remain confident that the Company will secure these contracts during the course of the current financial year, the first of which is expected to be signed imminently. The background to such delays was explained in the interim results announcement on 28 February 2006. The Directors drew attention to the fact that, while the Company is bearing the cost of investment in its key markets, it remains highly dependent on a small number of large contracts in public sector markets where considerable change is occurring, where the sales cycles are often long and complex, and where forecasting precise timing of closure has become more difficult. Deferral or acceleration of only a few of these can have a significant impact on the Company's results. The Directors are confident that the foundations put in place in 2005/6, coupled with the significant potential opportunities in the three vertical markets addressed by the Company, will result in a satisfactory outcome in 2006/7. The Company's cash balances amounted to around £0.3 million as at 31 May 2006. The Directors believe that, taking into account the Company's available overdraft facility and cash due under contract, the Company continues to have adequate resources for its present requirements. Enquiries: Manpower Software plc Simon Thorne, Finance Director 020 7389 9500 Shore Capital Alex Borrelli 020 7408 4090 28 June 2006 This information is provided by RNS The company news service from the London Stock Exchange BAB
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