AGM Statement

RNS Number:1535Q
Home Entertainment Corporation PLC
25 September 2003


                       Home Entertainment Corporation Plc

                    Annual General Meeting - Trading Update


THURSDAY, 25 September 2003 -- At the company's annual general meeting to be
held today, Iain Muspratt, Chairman of Home Entertainment corporation, will make
the following statement:


"We are now just over 16 weeks into our current financial year. During that
period group turnover has risen by 12.1% to #33.6 million. Sell-thru accounted
for 50% of sales (2002 - 48%) and the DVD proportion of video rental in Choices
Stores grew to 63.9% (2002 - 44.8%). Given the effect of the unprecedented fine
weather, we feel this is a creditable performance. During the first eight weeks
operating profits were below the previous year but I am pleased to say that
during the last eight they have been above the previous year although there is
still some shortfall to make up.


"All Divisions have achieved sales growth.


"In the last 16 weeks we have successfully introduced a new EPOS system in each
of our 209 Choices Stores. This investment will lead to significant improvements
in store performance and customer service. Immediately all rental customers are
able to use their membership card in any Choices Store throughout the UK. We
believe this is a world first in Video Rental.


"Video Box Office continues to expand its overall activities and the sell-thru
business of 'Movies', 'Games' and DVD Collections is very well positioned to
take advantage of the Christmas Period.


"Choices Direct continues to perform well and a number of initiatives are
planned for this area.


"Our business is growing rapidly and is dependent on our being able to provide
very effective logistics support. We have acquired a new 109,000 sq ft warehouse
facility adjacent to our existing headquarters on favourable terms. This will
provide capacity to expand and concentrate all material storage and handling in
one building.


"The Christmas Period is increasingly important to our business and we believe
that the mix of services which we offer together with the plans we have laid
equip us well to benefit from the opportunities which consumers offer.


"Our aim to provide the highest quality of service to our customers remains a
central plan in our business strategy. The effort and enthusiasm of all who work
for us is one of our most valuable assets and I would like to place on record my
thanks for all they achieve."


ENDS


For further information contact
Simon Bloomfield, Bankside Consultants
Tel: [phone]







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AGMUSSBRONRKUAR