Chairman's Statement

Quarto Group Inc
3 May 2000

                    The Quarto Group, Inc.
                               
                         AGM statement

At  the  AGM  in London today of Quarto, the London-based  and
listed publisher of illustrated books in co-edition and  under
its own imprints, the Chairman, Laurence F Orbach, stated:

'The  Board is pleased to reaffirm the recent comments in  the
first quarter trading update, released on 25 April 2000, which
outlined  continued  good progress.   Unaudited  turnover  and
gross  profits at the end of 31 March 2000 were ahead of  last
year's corresponding figures by 3.3% and 4.3% respectively.

'On  a rolling 12-month basis from the period 1 April 1999  to
31  March  2000  (which irons out the impact  of  seasonality)
there was a strong improvement in the business, with sales  5%
ahead  and  operating profit margins rising by 1.6%  to  7.6%,
compared with the 12 months ending 31 March 1999.'

'Quarto   participated   recently   in   the   two   important
international  book  fairs, in London and  Bologna.  At  these
fairs  our  new  title  presentations  in  both  adults'   and
childrens'   continued  to  receive  a  favourable  reception.
Scholastic  (the publisher of the Harry Potter  books  in  the
United  States) have licensed four titles, with initial orders
of 370,000 copies for the USA alone.  In addition, and despite
the  increasing pressures posed by the weak Euro, we sold  the
first  titles  in a new children's series, Oliver's  Breakfast
and  Clean Clothes for Oliver, with initial world wide  orders
of over a million copies.'

''The outlook continues to be encouraging', commented Laurence
F  Orbach,  who  is also the Chief Executive of  Quarto.   'As
always,   there  are  challenges  as  well  as  opportunities.
Because  of  exchange rates, we are not benefitting adequately
from the upturn in European economies, but our initiatives  in
licensing  exclusively the material from the Vatican  Library,
launching new series for teenage girls and young children, and
progressing   with  iQu-digital.com,  give  us   grounds   for
considerable optimism.''

Enquiries:

The Quarto Group, Inc.
Terry Hancock, Chief Operating Officer           020 7700 9015
(Email:  [e-mail])

Mick Mousley, Chief Financial Officer            020 7700 9005
(Email:  [e-mail])

Website:  www.quarto.com

Bankside Consultants Ltd
Charles Ponsonby                                 020 7220 7477
(Email:  [e-mail])