AGM Statement

RNS Number:5926J
ChoicesUK PLC
28 September 2006



Press Release


IMMEDIATE - THURSDAY, 28 September 2006

                        ChoicesUK plc - 2006 AGM statement

At the annual general meeting of ChoicesUK plc being held today, Chairman Iain
Muspratt will make the following statement to shareholders:

"During the past year, substantial progress has been made in restoring
profitability to the business and this was reflected in the second half
performance of the year.

"In the period of the first 12 weeks of the current year Rental revenues have
remained in decline, Management has responded by continuing to restructure the
business and seek opportunities to generate new sell-thru activities.

"Total revenues for the period are down 1%, reflecting a poor rental performance
during the World Cup which was largely offset by the increase in sell-thru
revenues. Rental activities recovered in August during very favourable (i.e.
wet) weather conditions.

"The disposal of loss-making (and non-trading) stores remains a key focus with a
further 17 lease disposals during the period. Operating the business more
efficiently through a reduction in headcount, along with a range of other cost
saving initiatives, has delivered year on year savings of over #900,000.

"The consolidation of the Purchasing team has enabled a tighter control of
stock, this in conjunction with reduced capital expenditure has resulted in our
cash position being significantly better than budgeted.

"The integration of our Games Fulfilment operation with our Direct business is
on track and is delivering significant incremental revenue to the business.

"Our Local business remains buoyant with strong growth in the Republic of
Ireland under our brand ChoicesIE. In the UK, I am delighted to announce that we
have won a contract to supply Welcome Break. This leading service station
operator is keen to develop its Entertainment offering as part of a major
re-branding exercise.

"As a result of increased sell-thru activities our business now benefits far
more from the Christmas trading period. The product line up looks favourable
with DVD releases anchored by a #50m box office performance from Disney's
Pirates of the Caribbean and a wide range of genres from Pixar's Cars to Sony's
Da Vinci Code. In Games the launch of Playstation 3 falls out of Christmas, but
currently remains within our financial year. Nintendo's revolutionary Wii
product, planned for release in early December, will provide a substantial boost
to the Games business and we are well placed to capitalise on this opportunity.

"In addition to a strong product line up we believe the work undertaken in
reconfiguring many of our stores, the introduction of a Games Fulfilment
business and our increased distribution via third party retailers, will enable
us to trade effectively through the Christmas period.

"Through the remainder of the year we will maintain tight control on stocks and
margins and seek further additional revenue streams that can be operated within
our existing structure.

"The whole team remains totally committed to seeing this business succeed in an
extremely challenging market, and I would like to thank them for their continued
efforts to return ChoicesUK to profitability."

END

Contact

Simon Bloomfield or Andrew Harris
Bankside Consultants (Tel: [phone])



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