RNS Number:9118W
Soundtracs PLC
9 January 2001


TRADING UPDATE - CLOSURE OF US SUBSIDIARY

Further to the announcement made on 1 August 2000, the Company
announces  that  the Group has continued to  endure  difficult
trading  conditions in the six months ended  31  October  2000
with  conversion of prospective sales remaining  frustratingly
low.

Soundtracs  (USA)  Inc.  the American  trading  subsidiary  of
Soundtracs Plc, suffered from a material downturn in the level
of  its business activities.  As a consequence, a decision has
this  week  been taken to close the American subsidiary  which
will  result in substantial provisions and closure costs being
incurred.

The  preliminary unaudited figures for the Group for the  year
ended  31 October 2000 will be announced within the next three
weeks.  These  will reflect losses arising on the  closure  of
Soundtracs (USA) Inc. and the disappointing level of sales  in
the  second  half of the year. The Board estimates  that  full
year  losses  will  be of the order of #500,000  incorporating
both continuing and discontinued activities.

Group  balance  sheet  remains strong with  cash  balances  in
excess  of  #1  million  and a medium term  loan  of  #780,000
secured against freehold property.

All  distribution activities in the USA have been  transferred
to  Fairlight Inc. who have offices in both New York  and  Los
Angeles and are market leaders in the sale and distribution of
digital   equipment  complementary  with  Soundtracs   digital
product range.

For further information:

Todd Wells, Chief Executive
Richard Owen, Chairman   020 7935 0811
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