Trading Update

GB Group PLC
27 April 2006


For immediate release                                              27 April 2006

                                    GB GROUP
                         ('GB Group' or 'the Company')

                                 TRADING UPDATE
             WITH RESPECT TO THE FINANCIAL YEAR ENDED 31 MARCH 2006

The Group made excellent progress in exploiting the opportunities in the growing
market for electronic age and identity verification and has also achieved good
results in its traditional areas of operation.

The main highlights are as follows:

• Invoiced sales for URU(TM) of £2.4 million (2005: £0.6 million) show a 
  fourfold increase compared to last year.

• The number of URU(TM) customers is now 101 (31 May 2005: 59).

• Good progress in the Financial Services sector with the signing of a number of 
  major retail banks for URU(TM).

• GB plans to exploit international opportunities during the coming year.

• Traditional operations had a positive year with turnover and profitability 
  ahead of last year.

• Cash balances remain strong at £6.7 million (2005: £6.7m).

• Under International Accounting Standards, revenue recognition for URU(TM)
  changes to spread revenues.

DataAuthentication - Electronic Age and Identity Verification

URU(TM) is an electronic solution addressing the problems of identity theft and
fraud, anti-money laundering and age verification. It is underpinned by GB's
technology, delivered via BT's high capacity web and is marketed jointly with
BT.

The number of URU(TM) clients has increased in line with expectations and now
stands at 101 compared to 82 in November 2005 and new customers are growing in
size and strategic importance.

Accordingly, invoiced sales for URU(TM) for the year ended 31 March 2006 are
expected to be substantially in advance of last year at around £2.4 million
(2005: £0.6m) following higher upfront payments and strong growth in transaction
volumes.

GB is targeting three core sectors of the identity verification market:
Financial Services, Online Gaming and Mobile Telecommunications. Progress within
these sectors is as follows:

Financial Services

The Financial Services sector represents a significant opportunity for URU(TM)
through the automation of regulated processes, such as money laundering, and
enabling innovative new Financial Services businesses to become established
quickly in the market. A number of major retail banks are now URU(TM) clients
utilising the solution in niche applications and ACL (trading as BlueCorner
Cards), the leading provider of prepaid card programmes, has recently become a
URU(TM) client. URU(TM) now has 48 clients in the Financial Services sector.

Mobile Telecommunications and On-line Gaming

Good progress in the Mobile Telecommunications and Online Gaming sectors has
been achieved. In the Online Gaming sector, URU(TM) continues to dominate the
market and new clients include Power Leisure Bookmaker Ltd (Paddy Power),
Trafalgar Betting and Gaming Limited (32Red) and Tombola (Alderney) Limited.
Additionally, Skybet (an existing URU(TM) client) has extended its agreement to
three years with a significant upfront commitment. URU(TM) now has 45 clients in
Online Gaming and Mobile Telecommunications with a further 8 in other sectors.

Traditional Operations

DataIntegrity and DataSolutions, GB's traditional operations, have also had a
positive year despite their respective markets remaining challenging and
competitive. Our innovative approach to new product development in our
traditional businesses, utilising technology and experience developed in our
DataAuthentication business, is helping us to create differentiation in these
areas. As a result, turnover and profitability is expected to be ahead of last
year.

Cash

In June 2005 we said that cash would not fall below £5.5 million during the
course of the year. The Group's cash balances at 31 March 2006 were
substantially in advance of this at £6.7 million (31 March 2005: £6.7 million)
after taking account of the investment to develop our market position in
DataAuthentication and the dividend payment of £0.4 million in July 2005.

International Financial Reporting Standards (IFRS)

During the year ended 31 March 2006, the number of URU(TM) contracts increased
significantly and towards the end of the period, the number of clients
committing to contracts with substantial upfront payments increased.

As these types of contracts are expected to increase and, combined with the
adoption of International Accounting Standards ('IAS') for the first time in the
March 2006 accounts, we, together with our auditors, have reviewed the more
detailed revenue recognition principles connected with the new URU(TM)
contracts.  The conclusion drawn is that, whilst the initial set up fees are 
non-refundable and are all received on signing of a contract, they contain an 
element of pre-paid transactions which can be used by the client over the 
contract term. It would, therefore, be more prudent to spread this revenue over
the initial contract term.

This change in accounting policy will result in the deferral to future years of
both revenue and costs which previously would have been recognised in the year
to 31 March 2006 and accordingly the creation of deferred revenue and costs in
the March balance sheet. The effect in the year to 31 March 2006 is that
approximately £500,000 of non-refundable URU(TM) invoiced sales are expected to 
be spread forward together with related costs. The effect on the Group 
performance for previous years under IFRS and UK GAAP is not considered to be
material.

Prospects

The Directors continue to view the prospects for the Group as very positive.

GB Group expects to announce its preliminary results and statements for the
financial year ended 31 March 2006 at the beginning of June 2006.

                                    - Ends -

For further information, please contact:

GB Group plc
Richard Law, Chief Executive                                        01244 657333
Mona Navin-Mealey, Finance Director

Weber Shandwick Square Mile                                        020 7067 0700
Richard Hews
Helen Thomas

Website                                                             www.gb.co.uk

Notes to Editors

About URU(TM)

The URU(TM) service, the DataAuthentication division's principle offering, has
been developed jointly with BT. It combines GB's Authenticator(TM) search engine
and decision making software, access to GB's comprehensive range of identity
data and BT's high capacity web delivery. It helps organisations to protect
themselves from the growing problem of identity theft and fraud, which is
estimated to cost the UK economy over £1.7 billion per annum. URU(TM) enables
companies subscribing to the service to make an instant decision whether to
accept the identity claimed by any given individual and confirm their age in
seconds.

URU(TM) works by cross checking personal information provided by an individual 
at the point of acquisition against a comprehensive range of datasources to 
confirm that an individual is who they claim to be, live where they claim to 
live and meet certain minimum legal age requirements.

No personal data is disclosed by the reference databases and as a result URU(TM)
is compliant with the Data Protection Act.

URU(TM) also provides a valuable audit trail demonstrating that the necessary
checks have taken place, thereby helping companies comply with legislation,
including the 2nd European Money Laundering Directive, Proceeds of Crime Act and
Minimum Legal Age requirements of certain industry sectors.

The addition of data from CallCredit also enables users of URU(TM) to 
incorporate credit reference data.

The market for identity verification checking continues to grow. Research
published in February 2005 showed a 45% increase in the number of individuals
accessing gaming sites compared to the previous year. In addition, it is
predicted that around 10% of potential revenue is lost by Mobile
Telecommunications operators as a result of fraud and furthermore, the British
Bankers Association reported in March 2005 that losses of its members
attributable to fraud had increased by 11% compared to the previous year.

GB is working closely with organisations such as Gamcare, the charity promoting
responsible gambling, and RGA (Remote Gambling Association), formerly ARGO, to
help promote better understanding by gambling companies of the requirements of
good social responsibility processes. We are also working closely with some of
our clients to help them develop their social responsibility policies and
practices thereby ensuring they are well placed to address any issues in this
area as they arise and to adopt 'best practice' behaviour.

About GB Group plc

GB Group plc provides a range of products and services to enable organisations
to capitalise on one of their greatest assets - customer data. The Company has
expertise across a range of sectors and is able to transform customer data into
valuable information, enabling clients to make better, more informed decisions.

The development of innovative software and services, through to the provision of
the UK's most comprehensive consumer business databases - The National Register
(R) and the National Authentication Register - positions GB Group as a widely
acknowledged industry leader in its specialist markets.

GB Group plc has three complementary business areas:

• The DataAuthentication division helps businesses validate personal identity 
  information and provides anti-fraud solutions to fight crime.

• The DataIntegrity division helps companies capture and maintain accurate 
  customer contact data, an essential foundation for any profitable customer
  relationship.

• The DataSolutions division empowers companies to consolidate and analyse
  customer data from various sources, enabling them to make better, more 
  informed decisions.

Established since 1989, GB's core competencies combined with industry sector
knowledge have enabled the company to deliver significant value to organisations
such as Standard Life, Scottish Power and TD Waterhouse in helping them derive
maximum value from their customer data and sustain real advantage over their
competition.

GB Group is supported by its key relationships with major organisations with
whom it works with on major initiatives (an example being British Telecom),
together with a team of highly talented and motivated staff successfully
delivering business solutions.

GB Group plc is listed on the London Stock Exchange (www.gb.co.uk).





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