[29.03.2004]

AGM Statement

Chairman, Rodney Hornstein, statement at the AGM

At the Annual General Meeting of Alphameric plc Chairman, Rodney Hornstein, made the following statement:
"In the retail betting sector, Alphameric Red Onion continues to trade well. Webelieve that both our innovative product developments and the liberalisation of gambling regulations proposed by the Government will continue to drive the growth of our business in this sector over the next few years.

"Alphameric Hospitality has started the year particularly strongly. Most notably it has recently won a substantial long-term contract to supply the Spirit Group, the UK's largest managed pub company, with our web based ERP system, Caterwide. We expect Caterwide to continue to sell strongly in the sector.

"The positive signs we saw in the retail market place towards the end of lastyear have yet to result in a sustained increase in retailers' buying activity and, although interest in our product range is high, order intake remains slow. We have this year taken further steps to focus and refine the Retail Division, strengthening management, reducing overheads and enhancing market profile. The changes we have made will ensure that the Division is well placed to return to growth when an upturn in retailers' IT expenditure occurs.