ITO Intechnology

RNS Number:3577R
InTechnology PLC
16 September 2005

16 September 2005


                                InTechnology plc
                                 Trading Update


On 5th August 2005, InTechnology announced that pricing pressure in its
Distribution business and margin pressure within its Security business, caused
by the appreciation of the US Dollar, would result in earnings before interest,
tax, goodwill amortisation and exceptional charges for the first half-year being
below market expectations.


InTechnology also announced at that time that it would embark on a restructuring
process to achieve cost savings and improve operating efficiencies which would
result in an exceptional charge, to be announced at a later date.


The Company today announces that an exceptional charge of approximately #4
million will be made for the 6 months period ended 30 September 2005, expected
to be announced in November 2005.  This exceptional charge will result in
operating cost savings of approximately #6 million per annum.


Since the 5th August, the Distribution businesses in the UK and Continental
Europe have, in common with most other Vendors and Channel Partners, continued
to experience pricing pressures causing the need to reduce operating costs.  The
foreign exchange impact in the Security businesses has eased in the past month
as the US Dollar fell against the Euro and Sterling.  However there will still
be a negative impact on margins in the first half-year resulting in a small
operating trading loss before interest, tax, amortisation and exceptional
charges.


Results for the full-year before the exceptional charges are expected to be line
with current market expectations.  The Managed Data Services division continues
to trade in line with management's expectations and is expected to achieve
increased operating profits before interest, tax and amortisation in the second
half-year.



For further information:


InTechnology plc                                                   01423 877 442
Peter Wilkinson / Andrew Kaberry


Financial Dynamics                                                 020 7831 3113
James Melville-Ross





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