Disposal

Feedback PLC
02 January 2004

                                  FEEDBACK PLC

             Disposal of Business and Assets of Teknical Subsidiary


Following a significant deterioration in the current trading, and in the opinion
of the Board the future prospects, of Teknical Limited ('Teknical'), the
company's e-learning subsidiary, the Board has today entered into an agreement
whereby Serco Learning, a division of Serco plc, will acquire the assets,
intellectual property and business of Teknical Limited for a consideration of
£350,000 payable in cash on completion (the 'Agreement').

All employees of Teknical will transfer to Serco who will also take a full
assignment of the leasehold premises occupied by Teknical at Hessle in
Humberside.

The reasons for this year's disappointing performance at Teknical are primarily
due to sales to the further education market falling considerably below
expectations.  In addition, the unsuccessful tender for the South Yorkshire
e-learning project led to an increase in overhead costs.

For the year ended 31 March 2003, Teknical contributed profit before tax of
approximately £151,000 on turnover of £1.37 million, with gross assets of
approximately £509,000.  In the current year for the 8 months ended 30 November
2003, based on management accounts, Teknical made losses of  £382,000 on
turnover of £545,000, with gross assets of £197,000.  The Board took the view
that losses of this magnitude could not be allowed to continue, particularly
given the consequential impact on the Group as a whole, and sought to identify
potential acquirers of Teknical or its assets, leading to the Agreement.

The net proceeds of the disposal of Teknical will be used to enhance the Group's
working capital position and to further develop the remaining businesses.

The Board recognises that whilst shareholders will be disappointed with the
outcome for Teknical it should be acknowledged that the business has in general
failed to meet expectations.  It is the Board's intention to develop the
remaining Group businesses and focus on the core competencies of the Group.



2 January 2004

Enquiries:

David Sawyer
Group Managing Director
Feedback plc
01892 653322


                      This information is provided by RNS
            The company news service from the London Stock Exchange