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2005

At its AGM today in Glasgow, THUS Group plc will provide the following update on trading.

Since the start of the current financial year, THUS has continued to grow across all three of its key divisions of Managed solutions, Data and telecoms and Internet services. The Company’s ability to sustain growth has been underpinned by its strength in the delivery of converged services and by continued expansion in broadband.

New corporate customers won since the beginning of the current financial year include broadcasters EMAP Radio and SMG and support services group Babcock International. These customers have opted for THUS networking solutions backed by advanced Multi Protocol Label Switching (MPLS) technology which enables voice, data and other applications to be carried seamlessly over a single, integrated network platform. MPLS services have also driven expanded business with existing customers, including Johnston Press, The Funding Corporation and a large banking group.

Turnover to date from carrier pre-select has been relatively stable following the fall in turnover from this service in the second half of last financial year.

As expected, the beneficial impact from new services growth on profit margins has been diluted by the ongoing migration of customers from traditional, high margin dial-up Internet access services to broadband and the new terms of last year’s major contract renewals. Nonetheless, THUS maintains tight control of operating costs, continues to focus on cash generative business, and trading is currently in line with full year market expectations.

William Allan, Chief Executive of THUS, commented:

“THUS has one of the UK’s most advanced core networks and continues to respond vigorously to the challenging competitive dynamics in the UK telecommunication market with a focus on converged services. Converged services deliver cost and flexibility advantages for business customers as well as growth and cash generation for THUS. Our service innovation and capability continues to propel us forward and gives the Board confidence in continued revenue growth and cash generation over the current year.”

For further information, please contact:

THUS Group plc

Kathryn Rhinds
Investor Relations Manager    07974 160013

Deborah Rodger
Head of Press and Corporate Communications    0141 566 3167

Smithfield Financial

John Antcliffe or Tehsin Nayani    020 7360 4900