CMG Croma Grp

RNS Number:9192V
CMG PLC
15 May 2002




15 May 2002



             CMG PLC ANNUAL GENERAL MEETING: UPDATE ON CURRENT TRADING


At the company's AGM in London at 10.00am on 15 May 2002, CMG plc Executive
Chairman, Cor Stutterheim, will give the following update on current trading
conditions:

Since we announced our 2001 preliminary results on 27 February, overall trading
has continued broadly in line with the expectations we outlined then.

In our ICT services business, demand has remained flat. There have been some
areas of continued strong performance, most notably our significant Government
and outsourcing businesses, but these have been counterbalanced by other sectors
where customers do not yet have sufficient confidence to begin projects except
where they can deliver measurable cost savings within their current financial
reporting period. As a result, it is likely that our first half revenues will be
a little lower than in the second half of last year, but the operating profit
margin for ICT services will be held at a similar level (H2 2001: 7.3%). This
profitability level reflects the benefit of the cost saving and restructuring
measures undertaken in 2001, offset by the lower operating margin in Benelux
which has been affected by continuing pricing pressure and lower utilisation
levels.

In our Wireless Data Solutions business, trading is progressing in line with our
previously declared expectation of significant revenue growth and the need to
deliver a profit for the full year 2002. The global contract from Hutchison 3G
and the continued sales momentum in 2.5/3G multimedia messaging and unified
communications products underpin our projections, as do contracted maintenance
revenues and continued growth in SMS capacity in markets outside of Europe,
notably the Americas and S E Asia. While we have inevitably not won all the
contracts awarded in the Multimedia Messaging arena, we have shipped or received
firm orders for twelve systems and are positioning ourselves as one of the
leaders in next generation messaging systems. A significant number of trials are
ongoing with potential customers. In recent weeks, we have also seen the launch
of i-mode in Europe with CMG providing the wireless portal systems and software
to the operators involved.

As stated in the preliminary results statement, sequential revenue and profit
growth in ICT services in the second half of 2002 remains dependent on an upturn
in the economic environment and an increased conversion of prospects into sales.
At this stage in the year, we would not expect to have clear visibility of the
second half order and sales levels, particularly in the final quarter, and we
have yet to see signs of any material recovery in demand levels in the weaker
sectors. Nevertheless, our performance in what are clearly difficult market
conditions continues to be supported by strength in government and outsourced
business where we are reinforcing our position with focused marketing and sales
activities.


                             - ENDS -




For further information, contact:

Cor Stutterheim, Chairman, CMG plc Tel: +31 (0) 20 67 20 444
David Robbie, Finance Director, CMG plc Tel: +44 (020) 7592 4646
Tony Richards, Head of Investor Relations, CMG plc Tel: +44 (020) 7592 4442
Toby Mountford, Citigate Dewe Rogerson Tel: +44 (020) 7638 9571



About CMG

CMG, established in 1964, works closely alongside its customers in long-term
relationships to generate success for them. CMG is a global information &
communication technology company with leading positions in the provision of
Mobile Business, Advanced Security, Business and Process Outsourcing and
Advanced Payroll solutions. The combination of our capabilities produces a
compelling proposition for enterprises seeking to add the mobile channel to
their operations and marketing strategies. We are at the heart of our customers'
critical activities, combining industry knowledge, technical expertise and
practical innovation. With some 13,500 employees, CMG implements and supports
applications for customers worldwide from bases in 21 countries.

CMG is listed on both the London and Amsterdam Stock Exchanges.



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