RNS Number:7472M
Watermark Group PLC
25 June 2003


For immediate release 25 June 2003


CHIEF EXECUTIVE'S AGM STATEMENT


At the Annual General Meeting of Watermark Group plc (''Watermark''), the
provider of marketing support services to the international travel industry, to
be held at 11.00am today, the Chief Executive, John Caulcutt, will comment:


"Since the start of the year and particularly in the first quarter of 2003, the
airline sector has experienced further turbulence with an unprecedented
combination of economic gloom, war in Iraq, ongoing fears of terrorism, and the
outbreak of SARS, all conspiring to deter passengers from travelling.


Despite these difficult trading conditions we have continued to win new business
and build for the future.  With the SARS virus now contained, and the war in
Iraq behind us, we are confident that broker's forecasts for the year to
December 2003 can be met.


We believe that in the longer term it is precisely these pressures on the
airline industry that are accelerating the opportunity for this company to grow
substantially by continuing to build an outsourcing business that can lower
airlines operational costs through the provision of a total cabin management
system for products and services "above the wing".


As part of the process of change in an industry that is reinventing itself with
efficiency gains we have achieved much in the first six months of this year
towards putting in place the cornerstones of a business model that will allow us
to not only embrace these changes but, more importantly, help to lead them.


On the 27 March we announced the acquisition of M'n'H Recycling Limited a
company specialising in cabin grooming and the recycling of onboard products.
Today we have agreed heads of terms for the purchase of Media on the Move, a
company distributing newspapers and magazines to the travel sector and an
announcement will be made as required.  Also in this period we have formed joint
ventures with companies operating in the field of cabin crew training and in
worldwide logistics and supply chain management.  Further developments of our
total cabin management programme are in the pipeline and will be announced in
due course.


On the 21 May we announced heads of terms with Aerobox plc - a company quoted on
the Alternative Investment Market.  This joint venture will allow Watermark the
opportunity to market and supply worldwide lightweight and durable airfreight
containers produced by Aerobox.  Watermark will receive a sales commission and a
marketing fee and have the right to exchange (after a period of 12 months) its
interest in the joint venture at no further consideration, in return for new
shares in Aerobox representing 10% of Aerobox's enlarged capital.  Watermark may
also be entitled to an additional 2.5% of Aerobox (again at no further
consideration) depending on the company meeting performance targets.  It is
intended that this project will further expand the range of services which
Watermark can provide to the airline industry.  Aerobox has developed an
exciting new technology with significant potential cost reduction benefits for
customers, with which we are pleased to be associated.


We remain extremely positive about the long term opportunities to grow our
business in an industry where passenger numbers are now returning and where our
vision for the future has been well received."


For further information please contact:


John Caulcutt, Chief Executive                         Rosie Brown
Crispin Quail, Finance Director                        John West
Watermark Group plc                                    Tavistock Communications
Tel: 01489 897 800                                     Tel: 020 7600 2288
e-mail: info@watermarkplc.co.uk                        e-mail: rbrown@tavisock.co.uk


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