Trading Statement

IS Solutions PLC
28 June 2001

Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Thursday, 28 June 2001     IMMEDIATE RELEASE



                               IS Solutions Plc

                              Trading Statement


The Group indicated in its preliminary statement in April that trading in the
year to date had been in line with expectations, and that it viewed the future
with prudent optimism. Contract wins announced in February provided a level of
activity and visibility at that time in both the UK and US.

During May and June, the Group has seen a severe downturn in short term
prospects in the UK. The prime factors in evidence have been the reduction or
deferral of larger IT capital projects for a number of existing and
prospective UK clients, many of whom are part of major US or Japanese groups.
A number of projects have been indicated as being deferred until the latter
part of the year or into 2002. The Board is unable at this point to determine
the likelihood or timing of these contracts being awarded in the light of
economic conditions in many of their clients' own sectors.


Revenue streams are ongoing from existing clients and the Group continues to
seek to develop a greater proportion of recurring income from 'Managed
Applications'. AXL, acquired in 2000, is performing in line with expectations
and generates strong recurring revenues. The US subsidiary has recently been
awarded a project for the second half that the Board believes will enable it
to meet its expectations for that business for the year.


This downturn will impact materially on profitability for the first half of
the year and the Board believes that if prospects to secure major projects for
the second half of the year do not improve, there will be a significant effect
on the outcome for the year as a whole. The Board will continue to review
deployment of resources in the light of ongoing projects and ensure that the
cost base is appropriate for current market conditions.


A further update on prospects for the year as a whole will be made at the time
of the announcement of the interim figures, expected to be made in September.


It is evident that the demand for services and products in the field of IT has
progressively weakened across the sector generally during the course of the
year, but the Board believes that the Group's reputation and track record with
large corporate customers provide opportunities to strengthen its competitive
position over the medium term.



Enquiries:

John Lythall          Fiona Tooley

IS Solutions Plc      Citigate Dewe Rogerson

Tel: [phone]     Tel: [phone]

Mobile: [phone]