Sales Update

RNS Number:4093U
Morse PLC
20 January 2004

20 January 2004: Embargoed for 7.00am


                                   Morse plc

                        Sales performance update for Q2
                Interim results to be announced 25 February 2004

In accordance with its normal practice, Morse plc ('Morse'), the technology
integrator, is providing a quarterly sales performance update.

Sales for the quarter to 31 December 2003 were #114 million (2002: #92 million)
resulting in sales for the half year to 31 December 2003 of #187 million (2002:
#185 million). The acquisition of Techsol in December 2003 resulted in sales of
#4 million, included in the #114 million.

Services revenues in Q2 were #31 million (2002: #32 million) resulting in a
total for the half year of #58 million (2002: #57 million). Infrastructure
revenues for Q2 increased to #83 million (2002: #60 million) resulting in a half
year total of #129 million (2002: #128 million).

A particular characteristic of Q2 was the number of large infrastructure deals,
especially in the financial services sector. Such larger deals often produce a
gross margin percentage which is lower than would be expected for the normal mix
of infrastructure sales.

The Group has maintained its strong cash position with a net cash balance of #70
million at 31 December 2003 (30 September 2003: #71 million; 30 June 2003: #75
million).

Duncan McIntyre, Chief Executive, commented:

'We are pleased with the increased level of activity, particularly in our
financial services business.  As we begin to see a revival in our core markets
it is usual that the early volume deals will be at reduced gross margins.'

Ends

Contacts:
Duncan McIntyre, Chief Executive
Gavin James, Finance Director
Morse plc                                                    Tel: [phone]

Giles Sanderson
Harriet Keen
Financial Dynamics                                           Tel: [phone]



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