AGM and Trading Update

RNS Number:8630I
Blueheath Holdings PLC
13 September 2006


For Immediate Release                                         13 September 2006

                             BLUEHEATH HOLDINGS PLC
                         ("Blueheath" or the "Company")

                             AGM and Trading Update


Blueheath will today hold its AGM at 10 am at 132 Upper Street, London N1 1QP,
when Richard Rose will give the following update on current trading:

"As announced in the trading statement of 30 May 2006, while the Company had
been growing sales it remained loss making and the Board has therefore
undertaken a restructuring process.

The logistics restructuring referred to in the statement of 30 July 2006
commenced with the recent closure of the Tamworth operation and the transfer of
business to Blueheath's own warehouses in the North West and South East. This
move is now largely complete; however customer service and fulfilment levels
from our Thurrock site were adversely affected during the move leading to a
negative short term impact on current sales. The Company expects to return to
historic levels of fulfilment and delivery time shortly. The costs of the
transfer and the restructuring to date are expected to be realised in the first
half of the current financial year.

In relation to personnel, the Company announced on 1 September 2006 certain
changes to the board. The new management is currently carrying out a full
strategic review of the business. It is expected that further cost cutting will
be necessary in order to achieve an operating profit at current levels of
business and plans are being implemented to achieve this in as short a timeframe
as possible.

It's pleasing to report that our CTM subsidiary continues to produce a good
profit and is operating well in all respects.

The recent fundraising has provided the cash to meet the Company's working
capital requirements.

The board will update shareholders on the strategic review and restructuring at
the appropriate time and remains focussed on delivering shareholder value."


Blueheath Holdings plc                                  Tel: [phone]
Mark Aylwin, Chief Executive                            Tel: [phone]
Simon Mindham, Finance Director

Buchanan Communications                                 Tel: [phone]
Mark Edwards / Nicola Cronk / James Strong




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

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