RNS Number:7191H
Argonaut Games PLC
20 February 2003


For Immediate Release                          20 February 2003


                               Argonaut Games Plc
                          ("Argonaut" or "the Group")
                                 Trading update

For the six months to 31 January 2003

Argonaut today announces an update on trading for the six months to 31 January
2003.

The Board is pleased to report that the Group's Harry Potter titles have
performed in line with forecasts, earning #2.2m in royalties for Argonaut during
the half year.  Harry Potter and the Chamber of Secrets, developed by Argonaut
on the PS one for Electronic Arts Inc, was released on 16 November 2002.  This
was the second Harry Potter game developed by Argonaut on the PS one and, like
its predecessor Harry Potter and the Philosopher's Stone (Harry Potter 1), it
captured the number 1 position in the UK PS one charts giving Argonaut its sixth
hit game to sell more than a million copies.  The title remained at number one
for five weeks and continues to sell across all territories, as does Harry
Potter 1.

Following the change of publisher from Sierra Entertainment Inc to Vivendi
Universal Games Inc, as a result of restructuring within the Vivendi group, the
release of Malice has been delayed from Quarter 1 until the autumn of this year.
This is to allow further development time to accommodate editing and game play
alterations and so make a uniformly high quality title. This delay will have a
significant impact on the Group's results for the financial year to 31 July 2003
in terms of royalty potential, the additional development costs and the fact
that the team cannot be allocated to an advance-earning new project.  The
development of Malice commenced before the 2002 implementation of our new
project management systems, which are specifically designed to prevent this type
of delay occurring at the completion stage of a game. Although any delay to the
launch of a game is very disappointing, we believe the maintenance of the very
high quality standard of Argonaut's games is of vital importance to the Group's
long-term performance and reputation.

Development of the Group's other games continues and we are pleased to announce
that Kung Fu Chaos, developed by JustAddMonsters our Cambridge studio for
Microsoft, will be released on 11 April in Europe and 25 February in the USA,
some six weeks earlier than planned.  This game has already received very strong
reviews in the industry press and we look forward to it being a major success on
the Xbox platform.

Argonaut expects to announce its interim results for the six months to 31
January 2003 on 12 March 2003.

For further information, please contact:

Argonaut Games PLC                                                020 8951 6000
Jez San, Chief Executive
Joss Ellis, Chief Operating Officer
John Crilly, Finance Director
www.argonaut.com

Buchanan Communications                                           020 7466 5000
Bobby Morse / Isabel Petre




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