Trading Update

Torex Retail PLC
05 July 2004

5 July 2004



                                TOREX RETAIL plc

                                 TRADING UPDATE



Torex Retail plc ('Torex Retail' or 'the Group'), a leading provider of IT
solutions to major European retailers, today announces a positive trading update
following the end of its maiden five month trading period on 30 June 2004.


Following the successful IPO in March 2004, the Group had two main strategic
priorities - to strengthen the senior management team and to enhance the sales
and marketing function within the business to focus on winning new business from
Tier 1 and 2 retail customers.


The senior executive management team has been significantly enhanced during the
period with the appointments of Mark Pearman as Chief Executive and Richard
Thompson as Group Finance Director, both of whom have strong operational
expertise and acquisitions experience.  Jurgen Heck, Managing Director of the
Store Management Solutions - Europe business division and former CEO of Logware,
has joined the Board, contributing vast knowledge of the European retail IT
industry.  In addition, David Hallett, formerly IT Director of Littlewoods 
and Argos and currently Client Services Director at Sun Microsystems Inc, was 
appointed as a Non-Executive Director.     

A new corporate branding, including a new fresh modern logo and website
(www.torexretail.com), has been introduced and rolled out across the UK.  The
European business units will transition to the new branding with all the Group's
subsidiaries due to trade under the Torex Retail name by the end of the first
quarter 2005.  This strong marketing initiative to promote Torex Retail as the
leading technology innovator in European retail systems has been supported by
the appointment of Mark Sprigg, as Group Sales and Marketing Director and the
appointment of a number of experienced sales executives to drive new business,
particularly in the UK market.


The Group has continued to experience strong new sales success for LUCAS, the
Group's market leading JAVA based electronic point of sale ('EPOS') solution,
with a number of significant contracts from major international retailers
including Breuninger, Otto, ESPRIT  and Mont Blanc.  LUCAS was formally launched
in the UK at the Retail Solutions trade exhibition in June 2004 to a very
encouraging response from analysts and retailers. The first UK sales successes
for LUCAS have already been achieved with contracts being won for a specialist
retail chain and a major regional department store. These are extremely
important new business wins as they will act as valuable reference sites for
future sales success.


Other important wins in the UK include a confirmed EPOS roll out for Matalan and
new EPOS wins for the Co-operative Group Pharmacy chain of 300 stores and
Somerfield's petroleum and convenience stores.


The Board intends to announce results for the five months ended 30 June 2004 in
September and expects these results to be fully consistent with full year
expectations.  The Group continues to enjoy a high level of revenue visibility,
based on strong recurring revenues from its blue-chip customer base, a first
half order intake of some £20 million and an encouraging new business pipeline,
giving the directors confidence about the Group's future prospects for 2004 and
beyond.


Robert Loosemore, Chairman of Torex Retail plc commented:


'I am delighted to report we have made very good progress in our first few
months as a public company.  We have put together a very strong senior
management team and confirmed a clear strategy going forward.  The increased
investment we have made in sales and marketing is starting to pay dividends and
I look forward to the future with tremendous confidence'.



                                   -  Ends  -


Enquiries:

Robert Loosemore, Executive Chairman
Mark Pearman, Chief Executive
Torex Retail plc
Telephone: [phone]


Ginny Pulbrook / Freida Moore
Citigate Dewe Rogerson
Telephone: [phone]


Notes to Editors:

Torex Retail, a leading European retail solutions business, floated on AIM in
March 2004.  The business is an independent supplier of electronic point of sale
('EPOS') solutions and services and productivity tools to high street,
convenience and petroleum retailers with an installed base of some 50,000 EPOS
licences across Europe.  It has a broad base of blue-chip clients and employs
700 staff in UK, Germany, Belgium, Holland and Eire.




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