Morse plc
Pre-close Trading Update

Morse plc provides an update on trading for the 12 months ended 30 June, 2008.

Revenues in the second half were higher than the first half but full year revenue performance will be marginally below FY2007 (2007: £257.3m).

We have experienced some deterioration in short term services in the final quarter of the year as clients have reduced discretionary spend.

As a result, the balance of our business between technology and services has remained fairly constant which, together with continued project issues and weaker performance in Spain, means that we have not seen the improvement in operating margins that had been planned. This has resulted in EBIT margins being lower in the second half and full year EBIT being broadly similar to the prior year (2007: £12.2m).

The Company’s cash position at 30 June 2008 is expected to be approximately £11.0m.

Kevin Alcock, Chief Executive, will be leaving Morse and, with immediate effect, Kevin Loosemore becomes Executive Chairman.

Commenting, Kevin Loosemore, Executive Chairman of Morse plc, said:

"Over the past few months, in a deteriorating business climate we have undertaken a review of the company’s operations. The Board has concluded that the structure of the Group needs to be simplified to allow the individual business units to concentrate on their core competencies. With immediate effect Morse will operate as five businesses each of which will be reporting to me. These are:

• Investment Management Consulting
• Business Applications Services
• Infrastructure Services and Technology - UK
• Infrastructure Services and Technology - Spain
• Infrastructure Services and Technology - Ireland

The Board remains committed to the medium term target of 7.2% operating margin. Further details of the 2008 results and our future plans will be provided with the preliminary results which are expected to be announced on 9 September 2008.

I would like to thank Kevin Alcock for his hard work and his contribution to the changes that Morse has undertaken in the past two years and wish him well in his future endeavours."

Morse plc Tel: 020 8380 8000
Kevin Loosemore
Eric Dodd

Financial Dynamics Tel: 020 7831 3113
Harriet Keen
Haya Chelhot