Q3 Trading Update

Quarto Group Inc
19 October 2007


Friday October 19, 2007

                             THE QUARTO GROUP, INC

                               Q3 Trading Update


Quarto (QRT.L), the fully listed independent book producer and publisher based
in London, announces its trading update for the third quarter of 2007.



'Sales in the third quarter ended September 30, 2007 climbed to £31.1 million
(2006: £27.8 million), helped by a first-time contribution from MBI, which we
acquired at the end of August', said Laurence F Orbach, chairman and chief
executive of The Quarto Group, Inc.


'EBITDA rose 10% to £5.9 million (2006: £5.4 million), operating profit, at £3.6
million (2006: £3.3 million), increased by 9%, and profit before tax was 5%
higher at £2.8 million (2006: £2.7 million). With ten weeks to go before the end
of the year, we remain confident that our results for the year will meet market
expectations.


'The book industry's major trade event, the annual Frankfurt Book Fair,
concluded last Sunday. The event is very important for our international
co-edition book publishing segment, less so for the publishing segment. Initial
reports suggest that we will see continued robust trading internationally,
marred only by the continued fragile state of the book retailing scene in the
UK. Fortunately, as Quarto's revenues are widely spread internationally, with
only some 16% of Group revenues in the UK, our exposure to the British market is
limited.


'To put the Q3 numbers in context, we summarize below the unaudited results for
the 12 months and 9 months ended September 30, 2007.'


-----------------        
Unaudited Results
-----------------
                        
Trailing 12 months to  Underlying
September 30            Results *      Reported Results   Headline  Underlying
(£'000)                      2007        2007      2006     Growth      Growth
________________________________________________________________________________

Revenue                    98,084      95,164    94,514          1%         4%

EBITDA                     19,133      18,589    17,828          4%         7%

Operating
profit                     10,025       9,925     9,577          4%         5%

Profit before
taxation                    7,604       7,513     7,158          5%         6%



                       Underlying
9 months to               Results    Reported  Results    Headline   Underlying 
September 30 (£'000)         2007        2007     2006      Growth       Growth
________________________________________________________________________________

Revenue                    68,516      67,623   66,072          2%           4%

EBITDA                     11,836      11,853   11,241          5%           5%

Operating profit            5,241       5,327    4,959          7%           6%

Profit before taxation      3,306       3,370    3,119          8%           6%
      



* 'underlying' excludes the impact of currency and the acquisition of MBI.


The above figures are before amortization of non-current intangibles and
non-recurring items.



Notes for Editors:


Quarto is an international book producer and publisher with two principal
strands of activity: it publishes, under imprints owned by the Group, books and
art prints in the US, the UK, and Australia; and it creates books that are
licensed to other publishers for publication under their own imprints in many
languages around the world.




Enquiries:

The Quarto Group, Inc.
Laurence Orbach (Chairman & CEO)                                   020-7700 9003
Mick Mousley (Finance Director)                                    020-7700 9004

Bankside Consultants Limited
Charles Ponsonby                                                   020-7367 8851



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