RNS Number:8407L
CRC Group PLC
03 June 2003


                     CRC Group PLC ("CRC" or the "Company")
                   Changes in the Mobile Phone Repair Market
                                      and
                                 Trading Update


As referred to at the time of our preliminary results statement in February 2003
and restated at the time of our AGM statement in April 2003, our Home Gateway
and IT Businesses, where we have significantly expanded our contract base,
continue to offer excellent opportunities for growth. However, as anticipated at
that time, the personal communications market continues to be challenging as
mobile phone manufacturers seek to rationalise their repair company supplier
base, repair volumes remain lower than in 2002 and significant price reductions
have been implemented in the first quarter of 2003.


Since the AGM, CRC has undertaken a strategic review of its UK personal
communications activities in order to position the company appropriately in this
challenging marketplace. Separately Nokia, CRC's largest customer, has also been
carrying out a country by country review of its European After Market Services
arrangements aimed at reducing the cost of providing service. Following this
review, Nokia have indicated that they wish to reduce the scope of the work
carried out at CRC's Huntingdon operation more significantly than previously
anticipated. Additionally from 2004 Nokia have informed us, in accordance with
their pan European strategy, that they wish to handle spare part fulfillment and
warranty claims themselves.


Whilst the company is disappointed by the impact of the changed priorities of
its largest customer, we recognise the realities that they address. The newly
agreed scope and less favorable contractual terms of the work to be carried out
at CRC's operation in Huntingdon will be effective from 1st July 2003.


As a result of this new situation, a rationalisation programme is being
undertaken at Huntingdon, and in CRC's other UK mobile phone service facilities.
The company has decided to establish a single Centre of Excellence for mobile
phone repair at its plant in Nottingham with the consequence that it intends to
close its other mobile phone repair plant in Rugby. Consultation has started
with the 135 employees whose jobs are at risk as a result of these discussions.
The Board believes that the restructuring of its mobile phone activities will
position the company to continue to be a strong player in the current market
conditions and enable it to deliver high quality After Market Services.


The impact of these changes, as well as reduced repair volumes and prices,
(although offset by restructuring actions, which will yield annual savings of
#3m) are such that the Group performance for the current year will be
significantly below the current range of market expectations. Nevertheless the
Company's financial position remains strong with net cash of approximately #2.0
million as at 31st May 2003.


Our strategic aims remain to invest in strengthening our reputation for service
delivery and innovation and developing our market leading customer base, thereby
consolidating our position as a major After Market Service provider in the
communications, home gateway and information technology sectors. In addition, we
continue to seek value enhancing acquisitions to extend our geographical reach,
as well as our customer and product base.


For further information, please contact:

CRC Group plc
Alan McLaughlin, Chief Executive                                 01844 219 400
Chris Matthews, Finance Director

Weber Shandwick Square Mile
Chris Lynch/Katie Hunt                                           0207 067 0700






                      This information is provided by RNS
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