RNS Number:4530M
Reed Health Group PLC
18 June 2003


                                                                    18 June 2003

                              Reed Health Group plc
                     ("Reed Health Group" or the "Company")

                                 Trading Update

Since the start of the public sector's financial year on 1 April 2003, trading
in the markets in which Reed Health Group operates, particularly the social
care, physiotherapy and education markets, has become more difficult.

Specifically, there have been a significant number of new permanent appointments
that have been made throughout the health and social care service, causing a
decline in the demand for temporary staff. In addition, we have seen increased
competition across all areas, particularly education and care. However, we
expect that the demand for temporary cover due to holidays will resume,
particularly during the busier summer months. Trading in Locum Group Hospital
Doctors and Reed Health Professionals is in line with the Board's expectations.

As a consequence, the Company's results as a whole for the year ending 30 June
2003 will be somewhat below the Board's previous expectations. Despite the
difficult trading environment we have experienced during the last couple of
months, the Board remains optimistic about the Company's prospects in the medium
and long-term.

In line with our growth strategy, Reed Health Group has recently strengthened
its Operations Board with the appointments of Phil McDonald as Operations
Director for Reed Nurse, and Christopher Rolland as Business Development
Director. Phil previously worked as a Divisional Director at Adecco and, more
recently, was Managing Director of a multi-site recruitment business. Chris's
significant sales and marketing experience includes being responsible for
business development at BUPA Healthcare. The Board believes that the Company now
has a strong senior management team to take the business forward to the next
stage of its development.

Reed Health Group will announce its preliminary results for the year ended 30
June 2003 on 24 September 2003. The Board expects that the Company's current
dividend policy will remain unchanged.

                                    - Ends -
Enquiries:

Reed Health Group plc                                            020 7834 3181
David Fennell, Chief Executive
Mark Garratt, Group Finance Director

Weber Shandwick Square Mile                                      020 7067 0700
Louise Robson or Susanne Walker







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

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