RNS Number:4646K
Morse PLC
29 April 2003

29 April 2003: Embargoed for 7.00am


                                    Morse plc


                         Sales performance update for Q3


In accordance with its normal practice, Morse plc ('Morse'), the technology
integrator, is providing its quarterly sales performance update.


Sales for the quarter to 31 March 2003 were #80 million (2002: #127 million),
being impacted particularly by a weak six week period in the middle of the
quarter. This compares to sales of #93 million and #92 million for the September
and December quarters respectively.


Services revenues in Q3 were #25 million (2002: #27 million). This compares with
#25 million and #32 million for the September and December quarters.
Infrastructure revenues for Q3 were #55 million (2002: #100 million) which
compares to #68 million and #60 million for the September and December quarters.


During the past 12 months #5 million of costs have been taken out of the
business enabling the Group to maintain its strong cash position with a net cash
balance of #81 million at 31 March 2003.


Duncan McIntyre, Chief Executive of Morse plc, commented:

"There is still no clear pattern to demand but fortunately our higher margin
services business remains reasonably robust whilst the lower margin
infrastructure business remains difficult to forecast. However, we have seen an
improvement in the pipeline of opportunities recently and the indications are
that the June quarter will be the strongest of our financial year. Looking
forward we have to ensure that we continue to focus on managing costs and cash,
but the outlook for our final quarter is more positive and we remain on track
for broadly similar revenues in our second half versus the first half."


                                      Ends


Contacts:

Giles Sanderson

Harriet Keen

Financial Dynamics Tel: 020 7831 3113







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