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Monday 16 October, 2006

Touchstone Group PLC

Trading Statement

Touchstone Group PLC
16 October 2006

Date:                  16th October 2006

On behalf of:      Touchstone Group plc ('Touchstone' or the 'Group')





                              Touchstone Group plc



         Update on Trading for the half year ended 30th September 2006



Touchstone Group plc, the AIM-listed provider of business software solutions and
consultancy services, provides the following update on trading for the half year
ended 30 September 2006, in advance of its interim results due to be announced
on 15th November 2006.



The Group expects that its interim results will show continued good growth.
Turnover is expected to grow by over 35% on the prior year with Trading Profits
also showing a healthy increase of over 25%.



The Group has signed a number of important contracts in recent months. Notable
ERP projects include a £800,000 Microsoft Dynamics AX project for a leading
international construction consultancy. The Group's Procurement practice
continues to expand apace signing over £1 million of business, including a
contract valued at over £300,000 to supply software and services to a major UK
police force.  Additionally, and despite a relatively quiet start to the year,
the Group's CRM practice has recently won a number of strategic deals, including
a £250,000 Microsoft Dynamics CRM-based solution for a major UK Corporate
Finance specialist.


Keith Birch, Chief Executive of Touchstone Group plc, said:



'Subject to an audit review, Touchstone is expecting to announce another set of
record interim results.  Underpinning these results will be a 65% increase in
fee-based income and a corresponding 20% increase in headcount.  With buoyant
order books and continued strong demand we expect to continue our recruitment
program in to the traditionally stronger second half of the year. As a
consequence, and despite growth phase recruitment depressing overall margins, we
are on-track to meet market expectations for the year as a whole.'





Enquiries to:



Keith Birch, Chief Executive Officer

Touchstone Group plc                                   020 7121 4700



Emma Kane/Samantha Robbins/Duncan McCormick

Redleaf Communications                                 020 7822 0200







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