RNS Number:8854G
Patientline PLC
28 July 2006



                       Patientline plc - AGM 28 July 2006


                                 Trading Update


Below is the text of a trading update given by the Chairman of Patientline plc
at today's Annual General Meeting.


On 13 June, I reported that your Group was working closely with the Department
of Health (DH) to achieve a satisfactory outcome on the issue of telephone call
charges which was raised by Ofcom in its January 2006 report. Patientline
continues to work with the Patient Power Review Group (PPRG) to achieve the
objective of a substantial reduction in the cost of incoming call charges. In
mid July we welcomed the recommendations concerning bedside television and
telephones in hospitals included in the Health Select Committee report into
charges within the NHS. The Minister of State has since announced that the PPRG
report will be delayed to later this year to give the DH the opportunity to
undertake further work to provide a considered response to the recommendations
of the Health Select Committee. During this period discussions between suppliers
and the DH will continue with all parties committed to resolving the issue.


Trading performance for the UK business in the first three months of the
financial year has remained below prior year levels. Revenue per terminal per
day is some 5% below the comparable prior year period with incoming telephony
revenues contributing much to this decline. We enjoyed a temporary uplift in the
usage of our systems and television revenues during the football World Cup. The
number of terminals available for use remains approximately 73,000 or 2% below
the number available at the last year end, reflecting the impact of ward
closures during the first quarter. Capital investment in new installations
remains at historically very low levels.


Actions to deliver a leaner management structure in the UK have been completed.
Head office headcount has been reduced by approximately 30 positions, delivering
full year cost savings of c. #1 million pounds. Consistent with my statement at
the preliminary results announcement, some of these cost savings will be
reinvested in front line staff to improve our customer service levels at both
the customer call centre and in the hospitals.


Patientline's Dutch business is, like the UK, suffering from mobile phone
encroachment but, excluding the benefit of the HTS acquisition, is performing in
line with prior year revenue levels in the first quarter. The Group's North
American business, which is loss making, has continued to support its existing
contract base and is progressing negotiations to secure further contract wins.

Enquiries:


Andrew Honnor, Tulchan Communications - 020 7353 4200


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

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