Fastrack Trading Update

RNS Number:6457X
Fastrack Group PLC
23 January 2001

For release at 7.00am on 23 January 2001

FASTRACK GROUP PLC

TRADING UPDATE

Fastrack Group plc (the ‘Company’) the express parcel delivery and
international freight forwarding business announces an update on trading and
the integration of the Ontime business, the acquisition of which the Company’s
shareholders approved on 24 November 2000.

The integration of the Ontime business has proved more problematic than was
originally envisaged. This created short-term operational difficulties, which
disrupted the quality of service. Although this problem was quickly overcome
it did give rise to a higher level of customer attrition than had been
anticipated. Changes in the depot infrastructure have, however, been completed
in accordance with the planned timescales. Furthermore the roll out of the new
integrated operational system is being progressively introduced throughout the
network. This new system, which provides the company with a full track and
trace capability, will become operational on schedule in the early part of
February.

The assumption had been made that the trading levels of the combined
businesses would be broadly maintained whilst the integration plan was carried
out. This has not proven to be the case. Whilst the Company’s board is
encouraged that new business is now being introduced into the network at an
encouraging pace and a number of new business projects are being actively
pursued, overall revenue for the combined business is down on the
corresponding period of last year.

The overall effect of the delays in the integration programme and the
difficult trading conditions currently being experienced has been to put
short-term pressure on the Company’s working capital position; a possibility
which was emphasised in the Ontime acquisition circular. As a result the
Company has already called in the options it took with Jacobs Holdings plc and
the Bulldog Funds, thereby receiving a capital injection of, in aggregate, #2
million. Nevertheless these short-term financial pressures continue and the
Company’s directors are presently exploring a number of possibilities with the
objective of alleviating them.

A further announcement will be made in due course
END