Trading Statement

RNS Number:1685Y
Vocalis Group PLC
31 January 2001

Vocalis Group PLC

Trading Update


The Board of Vocalis Group PLC ("Vocalis") have today issued the following
statement with regard to current trading for the year ending 31 March 2001.

Since the announcement of the interim results in November 2000, there has been
a change in market conditions, particularly in the US, which is a main market
for the Group's Internet products and services. The Board therefore expects a
reduced contribution from Internet related products during the current year.

In addition, Vocalis' revenue has historically been dependent on a small
number of high value orders, and as a consequence, the Group's results are
dependent upon the timing of the receipt of such orders. This continues to be
the case, and the Group is in advanced negotiation for a number of significant
contracts, with a total value of approximately #4 million. If these contracts
are not forthcoming, the Directors believe that operating results for the year
ending 31 March 2001 would be materially below the level of revenue and
profitability anticipated and that, as a result, the Group would incur a loss
before tax for this financial year. The Board remains confident of the
marketability of the Groups core speech recognition technology.

The announcement made earlier today regarding the launch of The Talking
Network was not authorised by the Board of Vocalis. The Board are reviewing a
number of strategic options to maximise The Talking Network's potential. As at
31 January 2001, cash balances stood at #4.6 million.