Pre-close statement

365 Corporation PLC
31 October 2001


31 October 2001


                             365 Corporation plc
                           Pre-close period update


At the time of the release of the Group's first quarter results in August, the
Board of 365 stated that it was focussed on moving 365 towards profitability
and positive cash flow.  Today, 365 gives the following update ahead of the
Second Quarter and half year results, which are to be announced on 6 December
2001.


As part of an ongoing process of closure and restructuring of operations
designed to achieve the Board's stated strategy, current estimates of Second
Quarter restructuring and other one-off charges have increased to
approximately £1.9m, which will impact full year forecasts.  Much of this
relates to further cost reductions in the Business Division due to weaker
demand for new hardware installations, the rationalisation of operations and a
one-off item of £0.7m relating to the adjustment of advance invoicing in one
of the acquired businesses during the previous year.  The Group is expected to
report revenue of approximately £14m and pre-exceptional losses before
goodwill amortisation in the range of £3.3m and £3.5m for the Second Quarter.


In response to strong demand from third party clients, the Group has increased
its net investment in its Voice Services technology by a further £0.8m during
the Second Quarter.  Following recent million pound deals concluded with
Granada, Emap and Static, the Company expects to announce further important
new contracts before the end of the year.


Despite these increased costs, the Group remains in a strong financial
position with cash reserves in excess of £17.5m at the end of September, and
has reduced monthly cash consumption significantly over the past three months
as its cost reduction measures start to take effect.


The Directors remain committed to driving 365 towards profitability and
positive cash flow, and will provide a further update on progress on 6
December 2001.



Enquiries


365 Corporation plc                                       01442 458355
Martin Turner, Chief Executive Officer
Nik Philpot, Chief Operating Officer

Financial Dynamics                                        020 7831 3113
Fiona Meiklejohn