Make Sure You *TRACK* This Winner ;-'

Trading last half would have been marginally profitable if it were not for the Rover bad debt.

Teltrac revenues grew by 28% the same again in the second half would contribute a full 10% to company revenue - which illustrates its importance.

Perhaps most important, the company flags a better performance in the scond half:
"We shall be managing our working capital very tightly going forward and this, together with an expected improvement in profits in the second half, should improve liquidity."


Highlights:

* Revenues up 16% to #19.7m (H1 2004: #17.0m)
* Operating profit, excluding provision for MG Rover debts, #28k (H1 2004:
#1.2m)
* Operating loss of #535k (H1 2004: profit #1.2m)
* Teletrac revenues increased by 28% to $18.1m (H1 2004: $14.1m)
* Teletrac sales operations in 19 metropolitan markets
* Sizeable new deals struck with GCS and Builders First Source
* 16,500 Smartnav units sold - 55% increase on H1 2004
* Traffic information business signed new deals with Audi, Honda, Transport
for London and Garmin
* New RDS TMC traffic information deal with NAVIGON announced today

"Prospects

Despite a mixed performance in the business, Trafficmaster has increased H1
revenues by 16%. Teletrac and Trackstar, in particular, have generated strong
growth and both businesses have considerable scope for further expansion.

We consider Smartnav's performance disappointing and will be taking action to
improve the return from this business. We are also continuing to develop
several new business opportunities including solutions for Pay As You Drive
insurance. Trafficmaster operates in a number of high growth markets and it is
my clear intention to focus the company on capturing market share to generate a
healthy return for Trafficmaster's shareholders."