RNS Number:0172M
Home Entertainment Corporation PLC
09 May 2005


                       HOME ENTERTAINMENT CORPORATION PLC


Trading update

MONDAY, 9 May 2005 - In common with many retailers, Home Entertainment
Corporation PLC has experienced difficult trading conditions in recent weeks.
The Board has therefore decided to issue a trading update for the 52 weeks
ending 4 June 2005.

When the Company announced interim results for the 28 weeks ended 18 December
2004, Chairman Iain Muspratt said:

"It is quite clear that consumers are exercising greater caution than in
previous years, the impact of which is difficult to forecast."

Since the beginning of 2005, the company has continued to make significant
progress in a number of areas which is reflected in the performance for the
company's financial year so far.

   * Like-for-like sales of DVDs and games increased by 18.5% despite price
    deflation and piracy.
   * Like-for-like sales of mobile phones rose by 53.8%.
   * Significant productivity gains have been achieved.
   * Choices has added 16 stores (net of 5 closures), taking the total to
    229.
   * HEC involvement in the online DVD rental business is now making a
    positive contribution.

However, the higher margin rental business has suffered from unfavourable
weather conditions most weekends, particularly over the Easter period and the
May bank holiday. Widespread piracy has been another negative factor. As a
result, like-for-like rental revenues have fallen by 9.7%.

Against this background, the Board expects that operating profits, for the 52
weeks ending 4 June 2005, will broadly be in line with last year.

"Trading conditions are poor but we are making market share gains in all areas
and remain profitable and financially robust. Having already substantially grown
our sell-thru activities, we are continuing to adapt the business to shifting
trends in the home entertainment market and plan further initiatives in this
area during the remainder of 2005. We are also playing a leading role in the
industry's attack on piracy which is resulting in a loss of sales which we
estimate is equivalent to a substantial proportion of the legitimate video
market in the UK."

"We expect the windows between theatrical and video releases worldwide to
further reduce to the future benefit of all sectors of the business."

Preliminary results for the 52 weeks ending 4 June 2005 will be announced on
Tuesday, 30 August 2005.

ENDS

For further information contact:

Simon Bloomfield, Bankside Consultants: 0207 444 4140 (office) or 07771 758517
(mobile)




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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