RNS Number:6702W
RMR PLC
4 January 2001

RMR plc ("RMR" or "the Company")

TRADING UPDATE



BACKGROUND

Since the Interim Report RMR has:

1. launched 3 conferences Communicate 2000 (www.communicate2000.com),
Pharmaceuticals 2000 (www.pharmaceuticals2000.com) and Global Investor 2000
(www.globalinvestor2000.com).These conferences have attracted in total over
18,000 delegates primarily from Europe and North America.

2. produced 11 new conferences for launch in 2001 eg: Insurance 2001
(www.insurance2001.com), Corporate Travel 2001
(www.rmr-corporatetravel2001.com), Cosmetics2001 ( www.rmr-cosmetics2001.com).

3. developed new products using the Automated Conference Software which allows
existing content and community owners to provide information in an intelligent
and intuitive manner.

4. produced 2 US based conferences as a pilot to test the market.



PERFORMANCE

Since the Interim Report there has been a significant decline in sales of
virtual exhibition stands on the conferences, particularly in November and
December. This has resulted in a 60 % shortfall against target. As a result
the financial results for the year to 28 February 2001 will not meet market
expectations.

A review of the sales performance has shown that whilst there is continuing
strong interest in RMR's conference products there is an unwillingness to
commit to expenditure. Management believe that this is due in part to external
factors such as seasonality and the uncertainties over the US economy but also
to internal factors.

The review identified the need to change the nature and quality of contact
with customers, in particular to use a more personalised approach. As a result
it has been decided that a sales force made up of a relatively small number of
highly skilled and experienced staff is more appropriate than one based solely
on telesales. This sales structure is felt to be particularly suitable for the
sale of new products using the Company's Automated Software.

The Company is now embarking on a consultation process which is expected to
lead to a reduction of between 65 and 75 employees from its current headcount
of 160. As a result, payroll costs are expected to be reduced by #1.6 million
on an annualised basis. The consultation process is expected to be completed
during February.



CASH POSITION

At the 31 December 2000 RMR's cash balance was #7.3 million. The Board believe
that the restructuring steps taken above will result in a lower level of loss
through improved sales and the benefit of a lower cost base. As a result it is
believed that there is sufficient headroom to see the Company through to
profitability.



4 January 2001
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