2 million Contract Awards with Abbey National, Chelsea Building Society and Powergen

Over the last nine months Vocalis has refocussed its strategy and re-organised its operations to position the Group to gain commercial benefit from its speech recognition technology.

In particular the Board has:

• Focussed the Groups strategy to concentrate on providing business solutions to the call centres of the UK financial services and utilities sectors
• Introduced a market focussed approach, developing new module based solutions delivering real business benefits
• Launched the Groups strategy and product range to its target markets
• Developed a clearly identified sales strategy

The Board is delighted to report the initial success of this strategy through the award of three contracts, with Chelsea Building Society, Powergen and Abbey National, which have a combined value in excess of 2.0 million.

Details of the contracts, two of which are for new customers and all of which fall within Vocalis target market sectors, are as follows:

Vocalis is providing Chelsea Building Society with the solution for a voice driven telebanking system for money transfers, balance enquiries and recent transaction reporting;

Powergen is to introduce over the next year a complete voice driven solution with applications such as meter reading, direct debit changes and balance enquiries. Vocalis is providing both the solution and a consultancy package.

Abbey National, an existing Vocalis client, is continuing with its telebanking system and has signed an order for ongoing maintenance and support. The telebanking solution now handles over 1.5 million calls every month.

The Board of Vocalis had hoped to be in a position to announce new contracts earlier in the year. While disappointed that this delay means that revenues relating to the new orders will not be recognised in the current year, the Board believes that these contracts represent significant and measurable success against its revised strategy and looks forward to reporting further material progress in the coming months.

As at todays date Vocalis has cash balances of approximately 4.1 million, following a placing and open offer that raised 4.1 million (net) in December 2001.

Paul Wright, Vocalis Chief Executive, commented:

We are delighted to have won these contracts, in our target market sectors. They have been won as a direct consequence of our focussed approach within the UK call centre market and support the strategy we launched in September 2001.

Given the timing of these contracts the revenue will be recognised in our next financial year. Together with other signed contracts we will enter the new financial year with an order book in excess of 2.5m, a strong order pipeline and a secure capital base. We look forward to announcing further progress over the coming months.