MEG Mice Grp.

RNS Number:5241W
Mice Group PLC
14 May 2007



                                 MICE Group Plc

                        Trading Update and Board Change

The Board of MICE Group Plc ("MICE") is providing a further update to the
trading announcement issued on 26 April 2007.

International

Performance in the International Division for the year to 28 February 2007 was
in line with expectations with a strong pipeline of opportunities for the
current financial year.

UK

The review of the results of the work in progress valuation exercise in the UK
Division is continuing and the write down in carrying value that will be
required is not expected to exceed #15.0m. Whilst significant actions to address
controls are being implemented the Board also confirms that it has been
undertaking a fundamental review of the UK Division in order to restore
profitability. The outcome of this review is a decision to close or sell certain
operations following an attempt to sell the Division as a whole during the year.
An exceptional charge of approximately #6.0m will be included in the results for
the year ended 28 February 2007 largely relating to a write off of fixed assets.

North America

Paul Mullen will leave the Board of MICE with immediate effect. The Board would
like to thank Mr Mullen for his contribution to the business and wish him
continued success in the future. Mr Mullen's operational duties will be taken
over by Herb Hite, General Manager of the West Coast operation.

The results of the North America Division for the year ended 28 February 2007
will be below previous expectations but will still report a profit in excess of
#1.0m.

The Board is now taking actions, which are expected to be substantially
completed by the half year, to restructure certain operations in North America
to create a more focussed marketing services offer.

Goodwill

As a result of the various restructuring actions the Board will be carrying out
a re-assessment of the value of goodwill in the Group's balance sheet and
anticipates a non-cash exceptional impairment charge of #9.0m to be reported in
the year ended 28 February 2007.

Debt

Group debt at 28 February 2007 was #64.2m with the increase since the half year
primarily driven by a cash outflow from operating activities in the UK Division.
Post the year end, the Group received net proceeds of #17m from the sale of the
leisure assets and the property sale and leaseback which reduced the normal cash
outflow in the first few months of the current financial year. Net debt is
currently #55.0m.

The Board will continue to explore strategic options aimed at further
significant debt reduction.

Outlook

The Board believes that the restructuring actions that are underway, which will
adversely impact the results for the year ending 28 February 2008, will create a
stronger more cash generative marketing services business better able to achieve
profitable growth.


For further information:

HeadLand Consultancy         Tel: 0207 367 5222
Laura Hickman/Tom Gough



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