In the light of the most recent financial information it has received, the Board of Energis plc (“Energis”) announces today that Energis’ turnover and EBITDA, for the financial year to the end of March 2002, are unlikely to meet consensus expectations. Energis believes that Group turnover for the full year is likely to be around 5% below current consensus expectations of £1014 million, and EBITDA is expected to be around 10% below the current consensus forecast of £155 million.

December’s operating and financial information showed lower than expected growth in revenue and increased pressure on margins. Accordingly our forecasts for this financial year and next are more conservative. December’s figures contrasted with the information received for October and November during which some £120 million of new business had been gained.

This disappointing recent performance is the result of a lower than expected conversion of orders received into billed revenue, a decline in overall order flow following a promising start to H2, a more adverse than anticipated margin mix, including the speed of shift from metered to un-metered internet traffic, and a concern that these factors will not show an uplift -before the end of this financial year.

Energis may be at risk of breaching certain of its financial covenants under its bank facility and will be discussing the implications of its revised expectations with its banks.

In response to the revised expectations, Energis is putting in place a review of its business and is instigating the following immediate action: