N BROWN GROUP – CHRISTMAS TRADING UPDATE re Fulfilment Division

Zendor, our fulfilment and consultancy division, has moved into profit in the
second half, reversing its earlier first half losses, and will show a small full
year profit. One of Zendor’s recently acquired clients, Toys R Us, have reported
higher than expected sales volumes being fulfilled in the run up to Christmas.
Zendor has also been working with a number of other companies in a consultancy
capacity, including Safeway and Arcadia and continues to provide fulfilment
services for a number of high street retailers.

Eunite, the interactive part of the fulfilment division has more than halved the
level of first half losses by alignment of its business to current levels of
market activity.