Vocalis Group PLC - Trading Statement

RNS No 390d
VOCALIS GROUP PLC
7th October 1998

                            
                    TRADING STATEMENT

The Chairman's Statement in the Annual Report stated that
"until  the  Company  became much larger,  revenue  would
continue to be contingent on a small number of high value
orders  and,  as  a  consequence,  results  would  remain
dependent upon their timing."

Although to the best of our knowledge no orders have been
lost to competitors, the situation in  the
telecommunications market in general and the Far East  in
particular has deteriorated in the last few months.  As a
result, contracts we were expecting in the first half  of
the  year  have  been delayed but we continue  to  pursue
these and other opportunities aggressively.  It has  thus
become clear that the Company will not achieve the  level
of  sales originally anticipated in the current year  and
we do not expect this year to be one of profit.  Our cash
balance  at  the year-end was #2.8m, so we have  adequate
financial resources.

Therefore, as stated in the Chief Executive's  Report  we
continue  to  pursue opportunities that have arisen  from
the  convergence of voice and data communication networks
and  have  now  successfully extended  our  portfolio  of
applications  in this area.  It is anticipated  that  the
applications  portfolio,  together  with  licensing   our
technology to third parties, will serve to even  out  our
revenues and contribute to the growth of the Company.

We are increasingly confident that the technology we have
together with our market strategy will bear fruit and the
medium and long-term future of the Company remains good.

Our interim results will be published on November 24th.

For more information contact:

Charles Halle
Vocalis Group plc
Tel: [phone]
Fax: [phone]

John Thunhurst
Credit Lyonnais Securities
Tel: [phone]
Fax: [phone]

Tom Moriarty
Tavistock Communications plc
Tel: [phone]
Fax: [phone]

END

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