UKM.L Regulatory News (UKM)

7 October 2010

UK Mail Group plc

Pre-Close Trading Update

UK Mail Group plc today issues the following pre-close trading update for the half year ended 30 September 2010.

The first half of the year has been satisfactory, with trading performance continuing to be in line with management expectations.

Group revenues showed an increase of some 1% compared to the same period a year ago.

Our Parcels business continued its revenue growth in the first half. As usual, we expect that the final three months of the calendar year will represent the key period for parcels volumes. The launch of our Retail Logistics service within this division is making good progress.

Mail revenues increased slightly compared to the same period last year. As previously indicated, we expect revenue growth in our Mail business to be weighted towards the second half of the financial year as the impact of new customer wins and growth in Packets, together with additional volumes from some existing customers, more than offset the overall decline in transactional volumes in the UK mail market.

Our Courier business has continued to grow its revenues, whilst our Pallets business has shown resilient performance in a market that remains challenging.

UK Mail Group plc will report its interim results for the half year ended 30 September 2010 on 18 November 2010.

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Notes to editors:

About UK Mail Group plc

UK Mail Group plc is one of the leading independent parcels, mail and logistics services companies within the UK and the main alternative to Royal Mail for business mail requirements.

Forward-looking statements

This announcement contains certain forward looking statements with respect to the financial condition, results of operations and businesses of UK Mail Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.