The Board of Vocalis Group PLC ("Vocalis") have today issued the following statement with regard to current trading for the year ending 31 March 2001.

Since the announcement of the interim results in November 2000, there has been a change in market conditions, particularly in the US, which is a main market for the Group's Internet products and services. The Board therefore expects a reduced contribution from Internet related products during the current year.

In addition, Vocalis' revenue has historically been dependent on a small number of high value orders, and as a consequence, the Group's results are dependent upon the timing of the receipt of such orders. This continues to be the case, and the Group is in advanced negotiation for a number of significant contracts, with a total value of approximately 4 million. If these contracts are not forthcoming, the Directors believe that operating results for the year ending 31 March 2001 would be materially below the level of revenue and profitability anticipated and that, as a result, the Group would incur a loss before tax for this financial year. The Board remains confident of the marketability of the Groups core speech recognition technology.

The announcement made earlier today regarding the launch of The Talking Network was not authorised by the Board of Vocalis. The Board are reviewing a number of strategic options to maximise The Talking Network's potential. As at 31 January 2001, cash balances stood at 4.6 million.