Trading Statement

Claims Direct PLC
28 March 2001



            Claims Direct plc ('the Company')
                            
                    Trading Statement

In  a  trading statement issued on 25 January  2001,  the
Board  of  Claims Direct plc, the personal injury  claims
specialist, stated that it expected its results  for  the
six  months ended 31 March 2001 to be substantially below
market  expectations. The Company said it would  issue  a
further  trading statement around the time  of  the  year
end.   Accordingly, the Company is today  announcing  the
following update on current trading and other matters.

Trading Statement

The  recent high profile television advertising  campaign
run by the Company has not to date restored the number of
accepted  cases to former levels although brand awareness
remains  very  high.   The  run rate  of  accepted  cases
appears  to  have  stabilised at around 2,500  cases  per
month,  slightly above the level experienced in  December
(2,411 cases) but below the 4,000 plus cases per month in
the previous quarter.

The   lower   volume  of  cases  results  from  increased
competitor activity and low consumer confidence, as  well
as uncertainty and concerns about the scale of the likely
recovery  of  after the event insurance policy  premiums, 
an  issue  that  currently   affects    all    industry
participants.

As  previously  announced, the Company's interim  results
for  the  six  months  ended 30 September  2000  reported
operating  profits before exceptional employee costs  and
amortisation   (the  best  measure  of   its   underlying
performance) of £11.8m.  The Board now believes that  the
Company will record an operating loss for the second half
of  the  year.   For the year ending 31March  2001  as  a
whole, the Company expects to report an operating profit,
on a similar underlying basis, of not less than £6m.

After substantial exceptional items made up primarily  of
the  charge relating to ex-gratia payments to clients and
a  'one-off'  cost relating to payments  to  underwriters
required   to  secure  long-term  underwriting  capacity,
referred  to below, the Company is expected to  report  a
pre tax loss for the year of approximately £20m.

Dividends

Following  the payment of a 0.5p dividend at the  interim
stage, the Board does not expect to recommend the payment
of a final dividend.

Balance Sheet

The  Company's year end balance sheet is expected to show
bank  balances  totalling approximately  £20m,  of  which
approximately  £10m will be available as working  capital
with  the balance subject to restricted access until  the
conclusion  of  claimants cases.  The net assets  of  the
Company are expected to exceed £30m.

Reorganisation

The  Company  is  in  the process  of  restructuring  its
internal   organisational   structure   and    is    also
rationalising  and revamping its marketing  and  business
development  areas.   As  a  consequence,  its  Franchise
capacity  is  being reduced in line with the current  run
rate of accepted cases and the advertising spend is being
reviewed  to  take  account of future  likely  levels  of
business   activity.   Finally,   flexibility   will   be
maintained  so  that  the  Company  can  work   with   an
acceptable  level  of cases to achieve sustainable  gross
margins in the longer term.

As a result of aligning the operational base and overhead
structure to the new volumes of business currently  being
experienced, and giving effect to other changes  recently
announced  to  the core product, the Board believes  that
the  Company can regain operational profitability  during
the new financial year.

Insurance position

A recent test case (not involving a Company client) and a
statement   in  the  House  of  Commons   by   the   Lord
Chancellor's Department minister David Lock in  December,
both  confirm that the Access to Justice Act is clear  in
stating  that  after  the  event insurance  premiums  are
recoverable   from   defendants  in   successful   cases.
Notwithstanding  this  test  case  and  the  Government's
stance,  the  Company's  clients continue  to  experience
difficulties   in  recovering  insurance  premiums   from
defendant insurers in successful cases.

Claims  Direct intends to continue to seek a constructive
settlement  of  this  issue with the defendant  insurance
industry   whilst  continuing  to  recommend   that   its
solicitors   pursue  full  recovery,  if   necessary   by
commencing test cases in higher courts.

Discussions  with the Company's underwriters  which  have
taken place over recent months and which were referred to
in  the  statement issued on 25 January  2001,  have  now
resulted   in   an  Agreement  to  renew  the   Company's
underwriting facilities with new and existing  syndicates
at Lloyd's. The costs associated with this Agreement will
be  included  as  one  of the exceptional  items  in  the
current year's accounts.

The  Agreement also enabled the Company to introduce  its
enhanced  insurance  policy, which provides  its  clients
protection  against any deductions from the first  £1,000
of  compensation they receive, except for any interest on
the  loan  taken out to fund the cost of their  insurance
policy.  Existing clients will also be  able  to  upgrade
their  policies  to  take  advantage  of  the  additional
protection  offered.   This cover will  remain  in  place
until  clarity  over  the subject  of  recoverability  is
achieved.

Colin  Poole,  Chief  Executive  of  Claims  Direct  plc,
commenting on the statement, said:

'We believe that the corrective action that we have taken
will  successfully stabilise the business and that it  is
now more strongly positioned.

'Our  targeted  marketing activities should  lead  to  an
increase  in  the number of accepted cases and  therefore
will  place us in a position to return the core  business
to profit in due course.'

                            

Photos available at www.newscast.co.uk

For further information, please contact:

Claims Direct plc                   (Today) 0207 324 8888
Colin Poole, Chief Executive
Paul Doona, Finance Director
Web Site                             www.claimsdirect.com

Golin/Harris Ludgate                        0207 324 8888
Reg Hoare/Robin Hepburn/Trish Featherstone