AGM Statement

RNS Number:1166H
Vocalis Group PLC
18 July 2001


                              
                      Vocalis Group plc
                              
                        AGM Statement

Vocalis  Group  plc ("Vocalis" or "the Group"),  the  speech
technology  company,  held  its Annual  General  Meeting  in
Cambridge today.  At the AGM, Ken Hill, Chairman,  made  the
following statement:

"I  am pleased to report on progress since we announced  our
preliminary results on 13 June.

New Contracts
During  recent weeks we have been awarded two important  new
contracts, through Ericsson with Telenor Mobil and Telefonos
de  Mexico (Telemex). The contracts have a combined value of
#655,000  and  will  be delivered in our  current  financial
year.

As   a   supplier   to   Telenor  Mobil,  Norway's   leading
telecommunications  and IT supplier,  Ericsson  has  ordered
the   most  advanced  version  of  our  SPEECHtel  telephony
platform. Telenor Mobil uses the technology as the basis  of
its automated service for managing pre-paid mobile telephone
accounts.  The contract, to a value of #395,000,  follows  a
similar  contract,  to  a  value  of  #200,000,  awarded  by
Ericsson last year.

Telmex  is  to  upgrade to its current SPEECHtel   telephony
platform at a number of its sites in Mexico. The contract is
worth  #260,000.  Including  the  provision  of  consultancy
implementation.

I am also pleased to confirm that we have commenced delivery
of  the first stage of the contract with Eircom, the leading
Irish  telephone  company, announced  with  our  preliminary
results in June. This contract is  worth #220,000.

Cost Management
We  continue  to  focus on reducing our  cost  base  without
damaging  our ability to take advantage of the opportunities
our  marketplace affords us.  To this end I  am  pleased  to
confirm  that we have over the last four months reduced  our
annualised cost base by approximately #2 million.

Board
In  addition  to the Board changes announced  during  recent
months  I  am  delighted to confirm that my  predecessor  as
Chairman,  Roy Cotterill, who was to resign from  the  Board
today,  has  agreed  to  extend his  term  as  Non-Executive
Director.

I  believe  that  we  now have an extremely  talented  Board
offering  all the skills and knowledge required to take  the
Group forward in its chosen areas of operation.

                              
Annual Report
The following reclassifications need to be made on pages  18
and  33 to the financial statements for the year ended March
2001.    These  reclassifications,  which  relate   to   the
Consolidated Cash Flow Statement, are consistent with market
expectations for the Group's cash flow for that year and  do
not  have  any  impact on the year end  cash  position,  the
Consolidated  Profit  and Loss Account or  the  Consolidated
Balance Sheet:

Consolidated Cash Flow Statement
                                Restated  Previously stated
                                   #'000              #'000

Net  cash outflow from 
   operating activities           (5,917)            (3,417)

Net cash inflow from returns on investments
 and servicing of finance            229                229

Net cash outflow from capital expenditure and
financial investment                (505)              (505)

Cash outflow before management of liquid
resources and financing           (6,193)            (3,693)

Decrease/ (Increase) in short 
   term deposit                    1,250             (1,250)

Net cash inflow from financing     4,889              4,889

Decrease in cash in the year        (54)                (54)

Note 20 Reconciliation of Operating Loss to Operating Cash Flows

(Decrease)/Increase in creditors  (1,272)             1,228

Net cash outflow from operating 
  activities                      (5,917)            (3,417)

Summary
While it would be unwise to interpret the new contracts as a
change in the market conditions which affect the Group, they
lend  weight  to our confidence that we are operating  in  a
market  which,  while  young and  in  the  early  stages  of
development, has considerable commercial potential.  We  are
confident  that  our recently revised structure,  focus  and
control  of  costs  will  allow  us  to  take  advantage  of
opportunities that are available to us.



For further information contact:

Vocalis Group plc                               01223 846177
Ken Hill, Chairman                     [e-mail]
Paul Wright, COO                                            

Square Mile BSMG Worldwide                     020 7601 1000
Nick Oborne / Stephanie Smart               [e-mail]