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RNS Number:4361E
Reed Health Group PLC
28 November 2002

28 November 2002


                              Reed Health Group plc
                     ("Reed Health Group" or "the Company")

                                Board Statement


Following the Board Meeting held earlier today, the Company is issuing the
following statement.
                                                   
Trading update

Trading for the current year has started well for Reed Health Group.  The
operational integration of The Locum Group (acquired in May 2002) is nearing
completion and the Board remains very satisfied with its performance.  Reed
Health Group is currently strongly cash generative and, as at 31 October 2002,
the Company's net debt had been significantly reduced to #3.5 million.

Reed Health Group's markets remain buoyant and the Company continues to monitor
the impact of NHS Professionals closely but, to date, it has had a negligible
effect on Reed Health Group's business.  The Company is currently trading in
line with the Board's expectations and the Directors view the outcome for the
current financial year with confidence.

Management

As announced on Tuesday 26 November, Ms Christa Echtle and Mr Desmond Doyle,
respectively Chief Executive and Finance Director, were not re-appointed to the
Board at the Annual General Meeting.

The Company has spoken to Mr Alec Reed about the failure of the resolutions to
re-appoint Ms Echtle and Mr Doyle.  Mr Alec Reed has confirmed that their
removal as directors arose as a result of a breakdown in the trust and
confidence that members of the Reed family and related substantial shareholders
had in them.

Mr Alec Reed also confirmed that the Reed family does not have any concerns
about there being any financial irregularity or about the trading position of
the Company.

The Board is pleased to announce that Mr David Fennell has been appointed acting
Chief Executive of the Company.  Mr Fennell currently oversees the Company's new
business development and is independent of the Reed family and related
substantial shareholders.  Previously he was Chief Executive of The Locum Group.
Mr Fennell, aged 52, has spent his career within specialist personnel
recruitment and for the last decade has been specifically involved in the health
sector.  He joined The Locum Group as Chief Executive in November 1997, a
position he held until its takeover by Reed Health Group earlier this year.
During that period turnover increased from #14 million to #48 million per annum
through organic growth.  Mr Fennell's appointment to the Board will be
considered shortly.

Mr Fennell will be supported by the existing senior management team and finance
function.  The Board has commenced the search for a new Finance Director and
will make a further announcement in due course.

The Board would like to thank the Company's staff for their support and
commitment at this time and believes Reed Health Group is blessed with an
excellent team of people who are doing a great job.


                                    - Ends -



For further information, please contact:

Reed Health Group plc                                  020 7834 3181
James Reed, Non-Executive Director

Weber Shandwick Square Mile                            020 7950 2800
Terry Garrett or Louise Robson


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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