Q1 Trading Update

Quarto Group Inc
09 May 2003









THE QUARTO GROUP, Inc - Q1 RESULTS


Quarto makes Q1 profit and generates cash


Quarto, the London-based and listed international book publisher, announces its
unaudited results for the first quarter, ended March 31, of the 2003 financial
year.


'On slightly lower sales, largely reflecting the weaker dollar, Quarto's
principal operating currency, operating profit improved, and the company was in
profit at the pre-tax level. Sales for the quarter ended March 31, 2003 were
£14.35 million (2002: £14.56 million), giving an operating profit of £278,000
(2002: £261,000) and profit before tax and goodwill amortization of £46,000
(2002: (£39,000) loss). Net debt was £5 million below the corresponding figure
last year.


'The first quarter is traditionally our weakest,' said Laurence F Orbach,
chairman and chief executive. 'Overheads were down, and we are continuing to
generate cash. We did not experience any significant impact from the weaker US
retail environment, and the war in Iraq during the quarter. This is the first
time we have been able to record a profit before tax in the first quarter, and
is a reasonable start to the year.'


In order to mitigate the seasonal impact of one quarter, Quarto also provides
trailing
12 months' figures. For the 12 months' ended March 31, 2003, sales were £74.5
million (2002: £75.3 million), operating profit was £6.2 million (2002: £6.4
million) and pre-tax profit was £5.1 million (2002: £4.9 million).'




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Notes for Editors:


On February 14, 2003, Quarto announced its 2002 results: on turnover of £74.7m,
pre-tax profit, before amortization of goodwill, increased by 13% to £5.1m, with
underlying EPS of 21.1p.


Quarto's International Co-edition Book Publishing Division creates books which
are licensed to other publishers for publication internationally. It also
includes Regent and ProVision, which are Far East-based print broking and
production services businesses, serving both third parties and the Group.


Quarto's Publishing Division primarily publishes books, under imprints owned by
the Group, and art prints, mainly for their domestic markets in the US and
Australia. In addition, it includes two UK-based screen printers primarily
serving the point of sale display market, Western and AP Screen.


Although a Delaware registered corporation, Quarto's Head Office is situated in
Islington, London N7 and its shares are fully listed on the London Stock
Exchange.



Enquiries:
The Quarto Group, Inc.
Laurence F Orbach (Chairman & CEO)                               020-7700 9001
Mick Mousley (Finance Director)                                  020-7700 9005

Bankside Consultants Limited
Charles Ponsonby                                                 020-7444 4166







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