RNS Number:5438N
Transcomm PLC
15 July 2003

Trading Update for the six months ended 30 June 2003 and announcement of new
project commitment from the Metropolitan Police



Current Trading

Network service revenues (NSR) generated from our wireless data network remained
strong during the first half with average data traffic per unit up 23% from that
achieved during the corresponding period last year. Average revenue per unit
("ARPU") at #27.02 (#27.86 for the six months to 30 June 2002) was encouraging
despite the seasonal first quarter fall in NSRnetwork service revenues following
the Christmas break. Churn, another key indicator for the business, remained
consistent with expectation at 4.1% for the six month period against a figure of
4.3% achieved during the first six months of 2002.


The deployment of the field service application developed in conjunction with
our partners Astea and Progenie for Securicor Cash Services has now been
completed. The OEM Modem developed in conjunction with CNI and successfully
integrated as part of the Securicor application has been further developed to
create a new vehicle mounted modem to be named the TVM3. Over the course of the
next 6 weeks trials of this new product will commence with our customer TNT, one
of the markets leading express carriers, which if successful will result in
commercial sales from late 2003.


In our recent annual statement, we announced the intention to upgrade the
software platform of our Mobitex network during 2003. This upgrade is now
substantially complete and, through careful management, service to our customers
throughout the upgrade process has been largely unaffected. The benefits of this
upgrade will enable the enhancement of switching capacity, reduction in network
recovery time and improvement in overall network resilience. As a result of this
upgrade, our cost base associated with operating the network has fallen by
approximately 18% (annualised #400k) below that incurred during 2002. This
upgrade has enabled the Group to reduce its labour requirement further, though
termination costs associated with thise reduction of our operating overhead has
impacted earnings during the first half.


The Group has continued to focus on strengthening its balance sheet position and
is pleased to report net cash reserves at the end of June 2003. This improved
cash position will enable the company more effectively to manage the working
capital pressures associated with key projects such as the emergency services
project detailedproject detailed below scheduled for the second half.





Emergency Services

Our successful work with the emergency services continues, in particular the
development of new access services for the Metropolitan police to facilitate
improved operational responsiveness to incidents. We are pleased to announce
that the Group has now secured commitments from the Metropolitan Police for
Phase 5 of this development to enhance connectivity resilience to our network
and further support the expansion of services for up to a maximum of 3,000
vehicles. This commitment, we anticipate will result in a revenuerevenue value
of approximately #3.6m over the course of the next 3 years and will further
consolidate our position within the emergency services sector and create one of
the worlds leading emergency services mobile data systems.


Prospects

The Group continues to build on the successes achieved during 2002. The effort
and cost incurred during the first half to lower the Group's overhead base will
enhance the Groups trading results during the second half year. Whilst at the
current time wWe are optimistic that our key indica tors of ARPU and churn will
remain consistent for the year as a whole, although the pressure from
alternative network offerings remains a threat.


Having realigned resources to support further those sectors where our resilience
and network integrity are paramount, we remain confident that we will be able to
deliver further successes within these key sectors such as the emergency
services. In addition, we continue to progress our intention to create closer
alliances with key partners both at an operational and strategic level in order
to provide a broader range of combined services at competitive prices.



Interim Results

The interim Statement will be published on 21August 2003. Turnover for the six
months ended 30 June 2003 will be approximately #6.3m. After costs associated
with the further staff reductions of approximately #100k, the Company expects to
report a profit before tax of not less than #200k for the half year.





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