Trading Update

Genus PLC
19 February 2003


For Immediate Release                                          19 February 2003


                                    Genus plc

        Breeding Acquisition, Restructuring of Consultancy Division and
                  Distribution Management & Main Board Change

Genus plc ('Genus'), the AIM listed international agri-technology Group, is
pleased to announce three important strategic developments which will enhance
the Group going forward.

Genus confirms that it is continuing to trade, in the current year, in line with
the enhanced market expectations, adjusted upwards following the interim results
reported on 19 November 2002.

For the future, the Board believes that it should increase the Group's focus on
its highly profitable Breeding division, which accounted for 44% of turnover and
nearly 90% of divisional profits (interim results to 30 September 2002).
Accordingly, the three developments are:-

•  An earnings enhancing strategic acquisition in Australia for the Breeding 
   division.
•  Closure of part of the Consulting division which has continued to be loss 
   making.
•  A strengthening of the management in the Distribution division to
   promote its greater independence.


Breeding Division - Acquisition of Australian Cattle Breeding Company

The Group has today reached an agreement to acquire the breeding business and
certain assets, on a debt free basis, of RAB Australia Pty Ltd ('RAB'), the
second largest Australian cattle breeding company for A$10 million, payable in
cash, but subject to regulatory approvals.  RAB's turnover last year was
approximately A$5.5 million, generating an EBIT of A$2 million, from selling
semen in the Australian wholesale market.  RAB semen is produced locally from
its bull stud that tests 80 bulls per year, largely for the Australian market.

The acquisition of RAB, will provide Genus with proven R&D, specifically aimed
at the Australian market, and marks the second stage of the Group's strategy for
expanding the world-leading Breeding division in Australia and New Zealand.  In
2002, the Group acquired the remaining 70% share in its exclusive Australian
distributor, ABS Australia Pty Ltd ('ABS'), to act as a springboard for the
expansion announced today.  Australia is already responsible for 15% of the
world export trade in milk products.  As a major supplier of milk to the fast
growing Asian market, demand for semen and insemination services in Australia is
expected to grow strongly over the next five years.

RAB is expected to augment the business Genus already has through importing
semen from the Group's studs in the rest of the world.  This semen is currently
marketed and distributed through ABS Australia.  The operations of RAB and ABS
will be integrated to maximise synergistic benefits.  Genus will then transfer
its world class technology to the Australian business and increase its
investment in R&D in Australia.


Restructuring of Consultancy Division

The result of the restructuring previously undertaken in the Consultancy
division, has been to reverse last year's underlying operating losses of
£639,000 and to achieve a profit of £202,000 in the half year ended 30th
September 2002.

However, further progress is being slowed by market problems in a small sector
of the practice.

Consulting is the smallest of the Group's divisions, representing approximately
17% of Group turnover.  It operates in three sectors: -

•  Agricultural Consultancy, which has been returned to profit since the end of 
   the foot and mouth epidemic;
•  International Aid Consultancy, which specialises in advising government 
   organisations abroad and has continued its success, reported an
   underlying profit growth of 19%, at the interim stage; and
•  Market Research Consultancy, which has remained loss making since the market 
   downturn that occurred following 11th September 2001, and is slowing recovery 
   of the overall Consulting Division.

The Board has therefore decided to withdraw from the Market Research sector.
This sector represents only 2% of the Group turnover. Its head office is in
Newbury, with supporting offices located in Washington, Beijing, Mexico City and
Tokyo.

Agreement has already been reached to sell the Washington and Mexico City
offices to a management buy-out team, for a nominal sum, negating any closure
costs.

Whilst interest has been expressed by a number of parties to acquire the balance
of the business, it is too early to quantify the outcome of negotiations.  The
Group is carrying, on its balance sheet, approximately £3 million of goodwill,
attributable to this business sector.  It may be necessary to make a provision
against this balance following completion of the disposal process.

After the disposal, the profitable Agriculture & Food Consultancy sectors will
become part of the Genus Breeding division.  This is in line with the Group's
strategy of focusing on activities benefiting the core Breeding business, with
direct cross-selling opportunities within a common customer base, and indirect
advantages deriving from broader food chain strategy development work.

The successful International Aid Consultancy will become a stand-alone business.

The net effect of these changes will be to discontinue operating losses which
last year were approximately £1 million and will be of a similar level this
year, thereby enhancing the underlying earnings of the Group.


Distribution Management and Main Board Change

As part of the Group's plan to accelerate the development of the Genus
Distribution division, Philip Acton, who has been Group finance director since
1995, will resign from the Board and move into a broader Management role, as the
Chief Operating Officer of Genus Distribution.  Genus Distribution, based in
York, represents approximately 40% of Group turnover and has been consistently
winning new business and increasing its market share.  In the six months to 30
September 2002 like-for-like sales and operating profit increased by 13% and 29%
respectively.  Genus is confident that under Philip's stewardship, Genus
Distribution will continue to build on this progress to become an increasingly
independent and successful business in its own right.

Michael Roller, 37, will succeed Philip Acton, as Group finance director, with
effect from 17th March 2003.  Michael joins Genus from IDS Group plc, where he
was group finance director.  Michael brings significant board level experience
in quoted, multinational groups.  Previously, Michael Roller worked as group
finance director at Money Controls plc (formerly Quadramatic plc) and as group
finance director of Cookson Matthey Ceramics plc, the former joint venture
between Johnson Matthey plc and Cookson Group plc.

Commenting on today's announcement, Richard Wood, Chief Executive of Genus,
said:

'We have long believed that Australia represents an important market for the
future and this has been demonstrated by Australia's increasing dominance of the
world export trade in milk products.  The acquisition of RAB perfectly
complements our previous acquisition and continues the strengthening and
globalisation of our core Breeding division.

By separating the two profitable and growing Consultancy operations from the
loss-making Market Research Consultancy operation which will be discontinued, we
have unlocked the inherent value in the division and continued the strengthening
of the core, world-leading Breeding division.

I am delighted Philip has accepted a broader managerial role within Genus, a
move that reflects the evolving structure of the Group and the Board's
commitment to make the Distribution business an increasingly independent and
successful business in its own right.  Michael Roller, is an experienced finance
director who has the combination of qualities to make a major contribution to
Genus' future development. I look forward to working with him.'


Richard Wood, Chief Executive
Philip Acton, Finance Director
Genus plc                                                   Tel: [phone]

Charles Ryland / Catherine Miles
Buchanan Communications Ltd                                 Tel: [phone]




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