Massively Positive trading statement

More good news from Dataflex today!! With Interims due at the end of this month I feel January/early February should see a significant rise in the share price.

"Dataflex Holdings PLC
3 January 2001


DATAFLEX HOLDINGS PLC

PAXDATA ACQUISITION STRENGTHENS DATAFLEX'S BROADBAND OFFERING TO TELECOM
OPERATORS

Dataflex Holdings plc ('Dataflex' or 'the Company'), one of the leading
European suppliers of innovative voice solutions for alternative
telecommunications operators (ATO's), announces today the acquisition of
Paxdata Networks Limited ('Paxdata'). Paxdata, historically a developer and
supplier of conventional data communications equipment, is currently
developing a range of Integrated Access Devices (IADs) for connecting Small
and Medium Enterprises to Digital Subscriber Line (DSL) broadband access
networks. With the Unbundling of the Local Loop progressing throughout Europe,
IADs are key building blocks for ATOs to acquire business and residential
customers. Paxdata is an excellent fit with Dataflex's declared strategy
which includes becoming a leading supplier of broadband voice solutions and
the acquisition significantly accelerates Dataflex's introduction of IADs.

The acquisition of Paxdata is for an initial consideration of £1.37 million,
to be satisfied by the issue of up to 541,126 new Dataflex ordinary shares and
the payment of £0.5 million in cash. The agreement also provides for possible
additional payments up to a maximum of £1.75 million in cash and shares in the
same proportions as the initial consideration, conditional on the actual sales
achieved by Dataflex of Paxdata's products over the three years to December
2003. The cash element of the consideration is to be funded from existing
resources.

Application will be made to the UK Listing Authority and the London Stock
Exchange for up to 541,126 new Dataflex shares (depending on the closing
balance sheet), to be admitted to listing on the Official List of the UK
Listing Authority and to trading on the London Stock Exchange. Dealings in the
new ordinary shares, which will rank pari passu with the Company's existing
ordinary shares, are expected to commence on 31 January 2001.

The vendors are restricted from disposing of their shares in their entirety
for 24 months from the date of each issue or 42 months from the date of
completion of the acquisition, whichever is the earlier.

Reason for the acquisition

The Unbundling of the Local Loop provides a range of new opportunities for
ATOs, addressing in particular the Small and Medium Enterprises. The
relatively low cost, high speed, always-on internet access, combined with the
more valuable voice traffic, will improve the overall functionality and reduce
the costs for these businesses.

IADs are a key building block of the overall access solution in this
application. Paxdata, with its expertise of data communications devices like
ISDN terminal adapters, are well underway in the development process of these
IADs. It already has working products, based on proprietary protocols, that
will enable Dataflex to be among the first to market once the ultimate
standards have been ratified.

The combination of Paxdata's new products with Dataflex's other activities in
this sector will provide a comprehensive Voice over DSL and Voice over IP
solutions for business applications. Building on Dataflex's already strong
ATO customer base the enlarged Dataflex will be well positioned to exploit the
opportunities offered by the process of the Unbundling of the Local Loop.

Paxdata will be integrated into Dataflex's existing UK based subsidiary,
Dataflex Design Communications Limited, and Paxdata's management will be
retained following the acquisition.

Paxdata financials

Based on Paxdata's un-audited management accounts for the twelve months ended
31 March 2000, turnover was £198k, making a loss before tax of £81k with
negligible net assets as at 30 November 2000. Following integration of Paxdata
within the well established Dataflex engineering team and sales and marketing
channels, which should take approximately six months, the acquisition is
expected to be earnings enhancing.

Commenting on the announcement, Jacob van Houdt, group CEO of Dataflex said:
'We are extremely pleased to announce this acquisition. The products Paxdata
has under development will provide a crucial element to the overall solutions
Dataflex offers the ATOs who want to exploit the opportunities of the
Unbundling of the Local Loop throughout Europe.'

Jim Fitzpatrick, the founder of Paxdata, commented:
'We are very excited to become a key part of the overall Dataflex strategy of
offering attractive solutions to Small and Medium Enterprises by combining
fast Internet access with Voice over Digital Subscriber Lines'.



For further information:
Dataflex Holdings plc, Jacob van Houdt, Group CEO : 020 8710 1700
GCI Financial Group Limited, Richard Sunderland / Geoff Callow : 020 7398 0800"

All the best,

The Nun