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Friday 24 September, 2004

Thus Group PLC

Trading Statement

Thus Group PLC
24 September 2004


24 September 2004

                                 THUS Group plc

                                 Trading Update

THUS Group plc today makes the following comments on its trading performance.
Revenue growth for the first half to 30 September 2004 has been strong with
expected year on year headline growth of 12%. The core business services of Data
and telecoms and Internet are expected to increase by 18%, driven by stronger
growth in managed services, Ethernet, ADSL and carrier pre-select.

Notwithstanding the above, the Company has experienced tougher trading
conditions, with margins being impacted by increased price competition in the
current quarter, including predatory pricing for corporate accounts, switched
voice and leased line services. In addition, there has been an acceleration in
the substitution of dial-up Internet for broadband DSL. As a result, first half
EBITDA will now be less than that recorded for the equivalent period last year.

Cash flow for the first half is expected to be positive, leading to the Company
having produced four consecutive quarters of positive cash flow after interest
and capital investment.

THUS has renewed and expanded a number of key accounts and won a number of
smaller contracts during the period which are expected to deliver further growth
in the second half. In addition, the Company has increased its marketing
expenditure by £2 million to enhance new services sales.

Against this background, it is expected that for the year ending 31 March 2005,
THUS will deliver revenue of not less than £360 million, continued positive cash
flow and EBITDA of not less than £39 million.

THUS Group plc will announce its Interim results on 15 November 2004.

                                      ENDS

The Company will host a telephone conference call 9.00am this morning.
Dial in 020 8240 8249

Further information

THUS Group plc
William Allan, Chief Executive
John Maguire, Chief Financial Officer
Kathryn Rhinds, Investor Relations Manager    07974 160013

Smithfield
John Antcliffe                                020 7360 4900



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