Trading Statement

    23 January 2004

                            NSB Retail Systems PLC                             

                                Trading Update                                 

The Board of NSB, a leading provider of software solutions to the retail
industry, is pleased to announce that operating profits (before interest,
amortisation of goodwill, and exceptional gains arising from business
disposals) for the year ended 31 December 2003 will be not less than £2.5
million. This is significantly ahead of market expectations and delivered
against the background of the US dollar weakening significantly against the
pound and Canadian dollar during the year. Had exchange rates remained constant
with 2002, operating profit would have been over £2m higher. Cash balances at
year end exceeded £13m (before cash received from the BT transaction described
below), again significantly ahead of market expectations.

The year finished strongly on both sides of the Atlantic.

In the UK and Europe we entered into a distribution arrangement with BT during
December. This partnership gives NSB between 30-50% royalties for ongoing
licence sales made by BT, at the same time eliminating most of NSB's UK cost
base. The NSB/BT partnership is being favourably viewed by retailers and
Mothercare signed for our new store systems in December after the announcement.

In North America, we are experiencing an increase in activity with December
order intake exceeding internal forecasts. Further good business has been
signed in January.

During this period of December and January significant contracts have been
signed with Orvis, Lamps Plus, Modell's Sporting Goods, Ben Moss Jewellers, The
William Carter Company, Vitamin Shoppes, K&G Menswear, Reitmans and Foxwoods
Casino.

We have received positive feedback from JC Penney on the initial steps of their
pilot project.

Our full year results will be announced in March.

Enquiries:-                                                 
                                                            
Nikki Beckett, CEO                     Tel. [phone]   
                                                            
Stuart Mitchell, Group Finance         Tel. [phone]   
Director                                                    



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