Trading Statement

RNS Number:6808V
Virtue Broadcasting PLC
23 February 2004


VIRTUE BROADCASTING

23 FEBRUARY 2004

TRADING STATEMENT


Trading Overview

Virtue Broadcasting Plc ("the Group"), a leading European provider of online
corporate communications, presents its trading overview for the second half of
2003.

The board is pleased that the Group has successfully continued to implement its
turnaround strategy outlined in the interim statement released in September
2003. Substantial progress hasbeen made in its focus on the Corporate
Communications and IP services sector, including signing new customers,
continuing to make cost savings and initiating consolidation through
acquisition, in what is a fragmented European market place.

Trading has been in line with expectations following the increase in revenues
from continuing operations reported in the first half of 2003 and the Group is
looking forward to building on the progress made so far.

Corporate Activity

In July 2003 the company was able to acquire the business of its main rival,
Unit.Net, for a total consideration of #nil but repaid #100,000 of loans to the
parent of Unit.Net. This acquisition has brought with it several key advantages:
the move to a single infrastructure and technology platform and research centre
resulting in a combined cost saving of #1.4 million pa; a significant
contribution to the top line including a full year impact in 2004; upside from
cross selling other high margin products and services; and as importantly as
those mentioned above, the ability to service locally our growing corporate
customer base in the European market.

Following the release of our interim figures in September the group has
successfully raised #1.8 million before expenses via two placings in October and
November of last year. The purpose of the fundraisings was to strengthen the
balance sheet providing a stronger base from which to pursue the company's
consolidation strategy. This proved to be prudent as in January of this year the
company successfully acquired Kamera Holdings AB for a total consideration of
#2.4 million before expenses. A market leader in the Nordics, Kamera provides
webcasting and content distribution services to large corporations and
professional institutions including Nokia, AstraZeneca and the Stockholm Stock
Exchange.

As with Unit.Net the acquisition of Kamera will bring further combined cost
savings, increased revenue and cross-selling opportunities. The board is
encouraged by the speed with which the recent acquisitions have been integrated
into the existing group structure.

Looking forward

Mike Neville, Chairman commented: "I am happy to report that the recent
acquisitions of Unit.Net and Kamera are nowfully integrated and performing to
expectation, which augers well for the future, as well as the core Virtue
business in the UK, which continues to win new high quality customers every
month. The acquisition of Kamera has enhanced the ability of thegroup to
achieve profitability in the short term.

We have taken action to strengthen the Group's balance sheet and we fully intend
to continue our aggressive expansionist policy, both in vertical integration and
consolidation opportunities, to provide growth in shareholder value and
enhancing the bottom line of the business.

With a growing list of prestigious clients such as DaimlerChrysler, Dixons and
StoraEnso and having positioned ourselves to emerge as the leading player in a
Europeanmarket set to experience exponential growth over the next 5 years, we
are extremely excited for the future of the company.

We look forward to presenting our final figures for the 12 month period ended 31
December 2003 in due course and a further announcement will be made when a date
is set."

For more information contact:

James Ormondroyd, Finance Director
Tel: +44 (0) 20 7785 6000
Email: investorrelations@virtuebroadcasting.com

ENDS



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

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