Trading Statement

Stagecoach Theatre Arts PLC 
09 June 2004


Stagecoach Theatre Arts plc

Trading Update for the year ended 31st May 2004

Stagecoach Theatre Arts, which operates the UK's largest network of part-time
performing arts schools for young people, announces today the following trading
update prior to going into its close period in respect of the year ended 31st
May 2004.

Trading Overview

In its latest Interim Report, the Group reported record numbers of schools and
students throughout the network for the core Stagecoach Theatre Arts business,
whilst investing heavily in other potential growth opportunities. The success of
the Group's investment strategy is beginning to be demonstrated by:

The roll out of the SportsCoach franchise (increasing the number of schools from
10 to 23 over the year to 31st May 2004);

The development of Mini Stages and the launch of the pilot schools;

The legal and commercial preparation in order to offer franchises throughout the
USA, culminating in the first three schools to be opened under franchise in New
York in September 2004; and

The acquisition of 90% of Stagecoach Germany in July 2003, and the subsequent
development of and preparation for franchising in Germany. The Directors are
pleased to announce that the first two franchises have now been sold in
Frankfurt and Stuttgart ahead of schedule, their schools to open in September
2004.

However as previously reported, the Group's profitability is disproportionately
impacted by the number of new franchises and schools which are opened. The
number of new school openings in the Summer Term 2004 has been lower than
expected, which together with the increased development costs for the year, an
unexpected reduction in the administration fee earned from Surrey Performing
Arts Ltd and a provision for exceptional professional fees, will significantly
reduce the profitability for this year ended 31st May 2004. Consequently the
Board expects to report profits before tax of not less than £0.3 million for
this year ended 31st May 2004.

Notwithstanding the above, there were 517 Stagecoach and SportsCoach schools in
the UK at 31st May 2004, which is an increase of 11 per cent. over the year.

This, when considered in conjunction with the exciting developments within
SportsCoach, Mini Stages, USA and Germany, leads the Board to believe that the
prospects for future growth remain encouraging. However, the results for the
financial year to 31st May 2005 will reflect the Group's ongoing investment
strategy.

The Group will report its preliminary results for the year ended 31 May 2004 on
10th August 2004.

Enquiries:

Stagecoach Theatre Arts:                    Tel: [phone]

David Sprigg, Joint Managing Director

Richard Dawson, Finance Director and Investor Relations

Evolution Beeson Gregory:                   Tel: [phone]

Tom Price

Henry Turcan

Public Relations, JBPR:                     Tel: [phone]

John Burley


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