Q3 Trading Update

Quarto Group Inc
29 October 2002



Tuesday 29 October 2002



                    THE QUARTO GROUP, Inc - Q3 TRADING UPDATE

                    'We are looking for good, steady growth'



Quarto, the London-based and listed international book publisher, has today
issued the following trading update, based on unaudited figures, in respect of
the third quarter of 2002 and the nine months ended 30 September 2002. As is its
normal practice, Quarto also produces figures for the trailing 12 months, which
are also ended 30 September 2002. These are derived from unaudited pro forma
management figures and are set out in the Appendix.



Group sales for the third quarter rose by 5% to £20.81 million (2001: £19.79
million), giving pre-tax profits up 40% at £0.95 million (2001: £0.68 million).
For the first nine months of 2002, sales were also ahead by 5% to £52.65 million
(£49.97 million), and pre-tax profits rose by 49% to £2.47 million (2001: £1.66
million). On a constant currency basis, sales were ahead by approximately 7%.



'The International Co-edition Publishing Division had strong sales in the third
quarter and, for the first nine months, had sales of £27.47 million (2001:
£26.40 million). Quintet's revival continued, and we had useful contributions
from Marshall and Quantum. Overall, the result is very much in line with
expectations, and well ahead of last year', said Laurence F Orbach, Quarto's
chairman and chief executive. 'The Publishing Division's sales of £25.18 million
(2001: £23.57 million) showed good growth in the US, the UK, and Australia, its
principal markets.



'We have orders in hand to fulfil our expectations for the year for the
International Co-edition Publishing Division. The weaker dollar will continue to
understate the growth of our sales, but will only marginally affect the  Group's
profit. The retail environment has softened in some of our key markets, and the
labour dispute on the West Coast of the US may have some impact on deliveries
into our largest single market, but we remain comfortable that, in the absence
of unforeseen circumstances, we'll meet market expectations for 2002.



'The biggest trade event in the calendar, the annual Frankfurt Book Fair, has
just concluded, and our forward lists of titles were very well received. We are
looking for good, steady growth as the publishing community reaffirms its
confidence in the future of the book.'



Quarto expects to announce its results for the year to 31 December 2002 in
mid-February 2003.



Notes for Editors:



Quarto's International Co-edition Publishing Division primarily creates content
for publication internationally by other publishers.  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 images, 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



                                    APPENDIX
                           Trailing 12 month figures


                                                              12 months ended            12 months ended
                                                                 30 September               30 September
                                                                         2002                       2001

                                                                        £'000                      £'000

Turnover                                                               76,303                     72,572

Underlying operating profit                                             6,507                      6,241
Net interest payable                                                  (1,226)                    (1,891)

Underlying pre-tax profit                                               5,281                      4,350




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