Vebnet (Holdings) Plc - Pre-Full Year Close Trading Update - Continuing Strong Growth

Vebnet, the AIM-traded UK market leader in employee benefit technology solutions, announces that the strong trading trend reported in the Interim Announcement of 18 February 2005 has continued through the second half of the year, which ends on 30 June 2005. Unaudited turnover for the ten months to 30 April 2005 increased by 206% against the comparable period of the prior year, and like-for-like EBITDA has now moved to positive from a negative position for the comparable period of the prior year. Net cash balances at 30 April 2005 stood at £0.9m, which compares with £1.0m at 30 April 2004.

Since the half-year end, Vebnet has:

•signed an agreement with Prudential UK, which manages more than 4,000 occupational pension schemes, to build the Pru@Work system, an innovative employee benefit solution for the corporate market, based on Vebnet's core FIX&FLEX technology. IBM will host the system; •successfully implemented programs for Heineken, Jacobs Babtie, Nationwide Building Society (Total Remuneration Statements), Capital Group International, Gleeds and KPMG; •added new clients directly, including Britannia Building Society and Sony BMG; •added other major new clients through partners: AOL and Computershare (both through KPMG) and Schroders (through Watson Wyatt).

The Board anticipates that the increased turnover and very significantly reduced trading losses for the year to 30 June 2005 will be materially better than market expectations. The Board also expects Vebnet to continue its record of progress in the coming financial year, based on a strengthening sales base and implementation pipeline.

Vebnet proposes to make its preliminary announcement of results for the year to 30 June 2005 in September 2005.