Trading Statement

Claims Direct PLC
25 January 2001



            Claims Direct plc ('the Company')

           Trading Statement and Board Changes
                                                         
Following  yesterday's meeting of  the  Board  of  Claims
Direct  plc,  the  Company  is  today  making  a  trading
statement and announcing changes to the Board.

Trading statement

Following  the  fall  in consumer  confidence  which  was
experienced after autumn's negative publicity and despite
encouraging increases in call centre enquiries in  recent
days,  the  run rate of accepted cases has not maintained
the  levels seen up to the end of November.  It is  still
too  early  to  forecast whether the recent increases  in
enquiry levels will continue.

As  a  result,  the Board anticipates that the  level  of
accepted  cases  for the remainder of the financial  year
ending  31 March 2001 will be significantly below  market
expectations.

Since  the half year end, the run rates of accepted cases
have been as follows:

October             4,379
November            5,002
December            2,411
January (to date)   2,523

Due  to  delays  in  the  introduction  of  the  enhanced
insurance  policy  product (which was  announced  in  the
statement  dated 24 November 2000), the  Company  has  to
date  been  unable  to  recover  from  its  clients   the
increased   premium   costs  payable   to   underwriters.
Accordingly,   gross  margins  have  been   significantly
reduced  during this period.  The Board anticipates  that
previous gross margins will be restored when the enhanced
insurance policy is introduced in the near future.

Discussions  continue  with  the  underwriters  and   the
Company  anticipates  that it will be  required  to  make
substantial   advanced  payments  in  order   to   secure
underwriting  capacity  on  a longer  term  basis  (three
years).   This will be reflected in the accounts for  the
full year to 31 March 2001.

The   Company  has  continued  its  substantial  budgeted
marketing  spend  and has recently, within  this  budget,
launched  a new advertising campaign designed to  develop
its  brand proposition further.  The Board believes  that
this  campaign will lead to a recovery in the  number  of
accepted cases, although the full impact will not be seen
until the new financial year commencing 1 April 2001.

As  a  result  of  the reduced caseload,  the  associated
increased  advertising spend per accepted  case  and  the
increased  insurance cost, the Company expects  that  its
results  for the six months ending 31 March 2001 will  be
substantially  below  market  expectations.   A   further
trading  update will be provided around the time  of  the
year end.

Board Changes

As  a  result  of  the  above  and  recognising  the  new
operating environment, the Board has decided that Mr Tony
Sullman,  currently Executive Chairman,  will  be  better
able  to  serve the Company in a non-executive  capacity.
Mr  Sullman will therefore become non-executive  Chairman
with  immediate effect.  The Board intends to appoint  an
independent non-executive Chairman in due course.

The  Board intends to appoint David Gravell to the  Board
as  Operations Director in the near future.  Mr  Gravell,
who  joined  the Company in November 2000, has  22  years
experience  in the defendant insurance industry.   Before
joining  the Company, Mr Gravell was the Claims  Director
of  the commercial division of Zurich Insurance (part  of
Zurich Financial Services, the fourth largest insurer  in
the  UK with approximately 9,000 employees and a turnover
in  excess  of  £2  billion).   Mr  Gravell  was  jointly
responsible  for  running  a  business  with  an   annual
turnover of £600 million and 2,500 employees.

Paul  Rew,  Legal Director and Company Secretary,  having
assisted  the Company through its flotation process,  has
indicated  his intention to leave Claims Direct  to  seek
new  challenges.  On his departure, Paul  Doona,  Finance
Director, will assume the role of Company Secretary.

Commenting  on  today's  statement,  Colin  Poole,  Chief
Executive of Claims Direct, said:

'We  recognise that we underestimated the negative impact
on  Claims  Direct's business from the autumn  publicity.
In addition, competition has grown and rates and capacity
within    the   relatively   immature   personal   injury
underwriting market have hardened.

'We  believe we have taken the steps necessary to  remedy
these issues, whilst acknowledging that our actions  will
not bear fruit until the next financial year.

'The  Board continues to have confidence in the Company's
ability  to  operate in the personal  injury  market  and
related market places.'
                            
For further information, please contact:

Claims Direct plc                   (Today) 0207 253 2252

Colin Poole, Chief Executive
Paul Doona, Finance Director
Web Site                             www.claimsdirect.com

Golin/Harris Ludgate                        0207 253 2252

Reg Hoare/Robin Hepburn/Trish Featherstone