Trading Statement

RM PLC 29 September 2000 RM plc - Update on Classroom 2000 Project and Current Trading RM, the leading supplier of ICT to UK education, announces that negotiations in relation to the Classroom 2000 PFI project in Northern Ireland are subject to delay and will not now be completed prior to the end of RM's current financial year on 30 September 2000. RM announced at its Interim Results that it expected that Trilith - the joint venture company formed with ICL to bid for the Classroom 2000 project - would be appointed preferred bidder this financial year, subject to agreeing suitable commercial terms. Pending this, RM made a provision of £2.1m against costs incurred in anticipation of the contract award. In the second half of the financial year a further £3.4m of costs have been incurred. Subject to progress in the negotiations over the next few weeks, RM now expects to make a provision against the costs of £5.5 million incurred in its full year accounts for the year to 30 September 2000. Classroom 2000 is a £300m, ten-year project to provide ICT to all 1,227 schools in Northern Ireland. Designated a significant project under the government's Private Finance Initiative (PFI), it combines ICT and education. Procurement commenced in November 1998, and in February 1999 RM and ICL were separately pre-qualified. In March 1999 RM and ICL came together to form the joint venture company Trilith. Trilith was established as the sole bidder for this project in June 1999. RM plc also announces that trading in the financial year to date, excluding the one-off impact of the potential provision, is in line with market expectations. RM's core business of providing ICT services to schools in the UK continues to offer very significant opportunities. Further National Grid for Learning funding of £710 million, across the two years 2002/2003 and 2003/2004, was announced by the government this week. Commenting, Richard Girling, Chief Executive of RM, said: 'It is disappointing to report that, after investing so much time and effort, we have been unable to reach agreement within the timeframe anticipated. We have, however, made significant progress with Classroom 2000 in the second half, and remain hopeful of reaching agreement on satisfactory commercial terms.' 'Classroom 2000 would provide considerable educational benefits to pupils and teachers in Northern Ireland. It would also be a world-leading showcase of the use of ICT in education.' Notes to Editors RM has pioneered the delivery of managed services in the education sector and has managed service relationships with approximately 300 establishments representing over 16,000 desktops. The Group's managed service activities range from single primary schools through to, in the case of Dudley Metropolitan Borough, providing a service for all of the schools in a local education authority. RM is accredited to supply managed services under the Department for Education and Employment's NGfL Managed Services initiative. The Dudley Metropolitan Borough Council project - the Dudley Grid for Learning - is a pathfinder PFI project worth £48 million. Other Customers for RM's managed services include Holland Park School (day-to-day management of a large and complex network), Tynemouth College (complete outsourcing of the college's ICT facilities) and Rotherham LEA (provision of a managed, 100 Mbit/s learning network). For further information contact: Mike Greig/Phil Hemmings RM plc 01235 826000 Andrew Fenwick/Deborah Done Brunswick 0207 404 5959

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