RNS Number:1999P
Incepta Group PLC
01 September 2003


1 September 2003


                        Pre-Close Period Trading Update


Prior to entering the close period ahead of its interim results announcement on
Wednesday, 8 October 2003, Incepta Group plc ("Incepta" or "the Group"), the
international marketing and communications group, has issued the following
update on current trading and market conditions.

As set out in the statement made at the time of the Group's #25.7 million
capital raising (2 July 2003), trading for the first quarter of the financial
year has been tough.  However, following the resolution of the Iraq conflict,
the Group has seen somewhat stronger trading in the second quarter.  Gross
revenues for the first half are broadly in line with the second half of last
year, both on a reported and organic growth basis.  As expected, gross revenues
are down on the comparable first half of last year reflecting the changed
economic environment.  Operating margins are below the second half of last year
reflecting both the difficult trading environment in the first quarter of the
year and the impact of weak trading at two US businesses, Citigate Global
Intelligence & Security and Citigate Broad Street.

Whilst some commentators are forecasting an improvement in the economic
environment going forward with a gradual improvement in the level of investor
confidence and corporate activity, this has not yet been fully reflected in the
Group's trading results to date.  This, combined with limited visibility, means
that Incepta will maintain its cautious outlook until there is clearer evidence
of a sustained general recovery.  However, the Group continues to compete
successfully for new clients with notable wins in many of its businesses.

Incepta's Marketing Services businesses continue to show their strength and
resilience, with particularly strong performances during the first half from
Finex, Dynamo and RED.  Client wins include work for Marks & Spencer and the
DVLA (RED); BAA and Sainsbury's Bank (Dynamo); Philips and Orange (Sponsorship);
and Barclaycard and Aventis (Marketing Intelligence); Hogg Robinson and BSkyB
(Incepta Online). Citigate Broad Street, Incepta's New York based specialist
communications business, has been operating in weak markets in the first half,
exacerbated by the impact of the Iraq conflict in the first quarter.

Incepta's Public Relations businesses are underpinned by their significant
retained client base and have won a notable number of new clients including
T-Mobile, Telewest, Freeserve, Kwik-Fit and Halfords. Incepta's businesses also
retain their strong market positions and continue to be successful in winning a
significant proportion of the high profile transactions that have taken place.
Recent transaction work has included advising AngloGold on its proposed
acquisition of Ashanti Goldfields, Yell on its IPO, Alcan on its bid for
Pechiney, Haim Saban on his acquisition of a majority stake in German television
group ProSieben from Kirch Media, Airborne on its merger with DHL, Iberdrola on
its successful hostile bid defence, Telefonica on its tender offer for Terra
Networks and handling communications for HSH Nordbank, Martha Stewart and the
takeover of Chelsea Village.  While the overall level of corporate activity in
mergers, acquisitions and public offerings remains low to date, the Group
expects to benefit strongly when levels increase.  Citigate Global Intelligence
& Security, our business and competitive intelligence division, continues to
develop its market position although weak market conditions have meant that it
is taking longer than originally anticipated for this business to achieve a
break-even trading position.

Incepta's Specialist Advertising businesses, both financial and corporate,
continue to operate in weak markets.

Against this backdrop, Incepta has continued proactively to manage its cost base
without compromising its competitive position. Incepta anticipates generating
additional annualised savings of approximately #3.5 million, principally through
a reduction in staff numbers, which will result in an exceptional charge
approaching #2 million in the first half of the current financial year.

Economic conditions remain difficult and whilst there have been areas of
improvement in the second quarter against the first quarter, we have yet to see
any signs of sustained recovery in our markets.  The stronger second quarter
performance is encouraging. The significant reduction in the Group's cost base
over the last two years has resulted in a high level of operational gearing.
Nevertheless, the ability to meet current expectations is dependent upon the
rate of recovery seen in the second quarter being maintained in the second half
of the year.  The Board remains confident in the Group's medium term prospects.



For further information please contact:

Richard Nichols, Chief Executive, Incepta Group plc          Tel: 020 7282 2865
Mike Butterworth, Finance Director, Incepta Group plc

Patrick Toyne Sewell/Fiona Bradshaw, Citigate Dewe Rogerson  Tel: 020 7638 9571




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