tRNS Number:3443N
Morse PLC
09 July 2003

Wednesday 9 July 2003

                                   MORSE plc
                        Sales performance update for Q4


Morse plc ("Morse"), the technology integrator, is providing its quarterly sales
performance update for the fourth quarter 2003.


Sales for the quarter to 30 June 2003 were #85 million (2002: #112 million)
resulting in sales for the half-year to 30 June 2003 of #165 million (2002:
#239m) and sales for the full year of #351m (2002: #465 million).


Services revenues in Q4 were #29 million (2002: #29 million), resulting in sales
for the second half of the year of #54 million (2002: #56 million) and sales for
the full year of #111 million  (2002: #107million).  Infrastructure sales for
the Q4 were #55 million (2002: #83 million), resulting in sales for the second
half of #112 million (2002: #183 million), and sales for the full year of #240
million (2002: #358 million).


This mix of sales will produce similar gross margins for the second half as
those achieved in the first half.  The Group expects operating profit before
goodwill amortisation and restructuring costs for the full year to be a least #9
million.


Restructuring costs of approximately #4 million were incurred in the year,
including the #1 million of restructuring costs announced at the time of the
interim results, reflecting a reduction in headcount in France, Germany and the
UK and the consolidation of our property in the UK.  This action will provide
annualised savings of #2 million of which #0.5 million has been included in the
current year.


The Group's cash position remains strong with a net cash balance of
approximately #75 million at 30 June 2003.


Further details will be provided at the time of the preliminary results to be
announced on 29 August 2003.


Duncan McIntyre, Chief Executive of Morse, commented:


"Our pipeline continues to show a healthy level of customer interest in our
propositions. However, in the current environment customers continue to be
hesitant in committing to IT expenditure sometimes with consequent delays and
uncertainty in converting proposals into sales.


"We are continuing to manage cost out of the business to enhance efficiency and
to ensure that our organization is appropriately shaped to support a group that
now has over 30% of its turnover in the services sector."



Ends



Contacts:
Duncan McIntyre, Chief Executive
Gavin James, Finance Director
Morse plc                                                    Tel: 020 8380 8000

Harriet Keen
Caroline Ledosquet
Financial Dynamics                                           Tel: 020 7831 3113




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

MSCUKOAROBRBRAR