Trading Update

The Board of VTR plc indicated in July that shareholders would be updated on results for the end of the financial year to 31 August 2005 and advised of steps taken by the Board to return the group to profitability.

The downturn in trading conditions that were first evident in the spring of 2005 continued throughout the remainder of the period. Consequently, the directors confirm that the group will post a loss for the year at around the £800,000 level.

Notwithstanding this outcome, the group was cashflow positive in the second half, as actions to reduce costs took effect. These initiatives included a number of redundancies and staff reductions, alongside a comprehensive reorganisation of the management team and redirection of the subsidiaries. These actions are AIMed at returning the group to profit in the current financial year, based on a realistic estimate of ant icipated trading conditions in the media industry.

The Board will provide a further update with the Preliminary Announcement of the results for the year ended 31 August 2005 , which are expected to be released in early November.